Since PASPA was repealed backed in May, 2018, the United States has been expanding sports betting laws on a state level. Now, all of this is endangered according to a leaked new bill.
Sports Betting in USA Could Face Trouble
Amid talks about the future expansion of the markets and the United States dominating the world’s sports betting industry by 2030, a new leaked Congressional draft bill has suggested a different future. According to the piece of legislation, all state laws will have to be approved by the US Attorney General and operators will have to purchase major league data packages that can be overseen on a federal level.
One year ago today the Supreme Court heard oral arguments in Christie v. NCAA, the landmark case that provided states the opportunity to create legal sports betting markets in their own jurisdictions. Check out how far #sportsbetting has come in a year: https://t.co/qkOxGaMklH pic.twitter.com/iTrDd8XnCd
— American Gaming Assn (@AmerGamingAssn) December 4, 2018
This puts the industry at crossroads. If the bill is voted into law, it would mean that all states need the Attorney General’s approval to be allowed to run their activities legally. Now a question presents itself – will states need to ratify their laws in retrospect, seeking the approval of the Attorney General or would any such changes apply moving forward, creating a special exemption for laws that have already been voted.
In the meantime, any states that are in the process of debating the legalization of the sports betting industry may need to reconsider their current plans and align them with an upcoming and rather restrictive legal measure.
Super Data League Packages
The “super data league packages” are a middle ground between operators and mainstream sporting organizations, which have agreed not to demand “integrity fees” (dubious payments designed to bring extra money to the leagues without proposing any active measures to fight some of the problems that sports betting presupposes).
By 2023, all operators would have to be using these packages, according to the newly revealed bill, if it turns out to be true. The bill is still very cryptic as to the author and the intended purpose of the law, although the name of Utah Senator Orrin Hatch, one of the original authors of the Professional and Amateur Sports Protection Act (PASPA) has been suggested according to information found within the document.
The American Gaming Association has been looking into the bill. AGA Vice President of Government Relations Chris Cylke, has said that while AGA backs the idea of a federal legislation for sports betting, he reiterates the position of the organization, i.e. that one is not really necessary.
That underlying position remains unchanged. At the same time, we remain committed to maintaining an open and constructive dialogue with policymakers considering sports betting legislation at any level of government.
As legal betting has been sweeping the country, plans to rein it in are not exactly new. AGA has been one of the most vociferous champions of the industry, trying to communicate to legislators that while additional regulation is a good idea, it should still not come at the expense of progress, which is being charted by businesses.
In Kentucky, for example, the Attorney General is planning to use the iGaming industry to foot the bill for a staggering $33 billion deficit in the pension.