The Supreme Court decision to overrule a nationwide ban on sports betting is likely to have significant effects on Massachusetts. Boston-based DraftKings, one of the leading daily fantasy sports companies, has already said it will enter the sports betting industry. “Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products,” said Jason Robins, chief executive of DraftKings, in a statement. “This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement.”
The ruling does not legalize sports betting but allows states to do so. Wynn Resorts has said it supports sports betting. The Legislature has shown an appetite for gambling — and gaming revenues — dating back to the establishment of the lottery and the more recent introduction of casinos to Massachusetts. Open questions include how Beacon Hill will choose to regulate and tax sports betting, which state agencies will oversee it, and which entities — casinos, the lottery and web-based companies — will be allowed to engage in it.
The U.S. Supreme Court ruling in favor of New Jersey on Monday effectively killed the Professional and Amateur Sports Protection Act (PASPA), the federal law that essentially limited sports betting to one state for the last 25 years. PASPA was declared unconstitutional in the 6-3 decision, meaning it will be up to states – including New Jersey, which has sought to establish sports gambling for years – to decide whether to allow its residents to bet on sports.
PASPA was signed into law by President George H.W. Bush in 1992 and went into effect in January 1993. Nevada – the only state at the time the bill became law that had widespread state-sponsored sports bettors – and three other states with more limited betting (Oregon, Delaware and Montana) were grandfathered in. PASPA didn’t outlaw sports betting because that was already illegal. Rather, PASPA banned states – outside those given exemptions – from regulating (and taxing) sports betting. Despite PASPA’s existence, the American Gaming Association (AGA) estimates at least $150 billion a year is gambled on sports in the U.S. and 97% of that amount was bet illegally.
With the power to legalize sports betting handed to the states, it’s now a race to see who can capitalize most on the fact that a whole lot of people like to bet on sports. Professional leagues will use the interest in gambling as a hook to promote their product, while also taking their slice of the pie to boost revenues. Some forward-thinking leagues like the NBA will be in position to capitalize on it. For a niche sport like horse racing, the opportunity to host a sports book is a potential game-changer that could bring people back to the track in large numbers.
Here is the status of the New England States and New York at this point in time:
Massachusetts
There is an active bill that, with Monday’s ruling, would create a “special commission to conduct a comprehensive study and offer proposed legislation relative to the regulation of online sports betting.”
Connecticut
Gov. Dannel Malloy issued a statement that said he is prepared to call the General Assembly into a special session to consider legalizing sports betting in the state.
“It is incumbent on us to consider the question of legalized sports betting in a thoughtful way that ensures our approach is responsible, smart, and fully realizes the economic potential that this opportunity provides,” he said in the statement.
New Hampshire
Gov. Chris Sununu said in a statement: “Legalized sports betting in New Hampshire? I’ll give it 3-1.”
Maine
Has not recently considered any sports gambling legislation, and a spokesperson for Gov. Paul LePage’s office did not immediately reply to a request for comment.
Rhode Island
Active bill would allow sports betting to be operated by the state lottery at existing casinos in the state, but it would prohibit betting on any collegiate sports event in the state or any college sports event outside the state involving any “state college team.”
Vermont
The state has not recently considered any sports gambling legislation, and a spokesperson for Gov. Phil Scott’s office did not immediately reply to a request for comment.
New York
State lawmakers and Gov. Andrew Cuomo approved language in 2013 approved language that would allow wagering on athletic events if the federal ban on sports wagering was struck down. But Cuomo said Monday he’s in no rush to move forward and suggested a new law would have to be passed, questioning whether it can be done this year before lawmakers end their annual session next month. “We’ll do an economic analysis and a legal analysis, but nothing’s going to happen this year because there’s literally just a number of days left in the legislative session and this would be a very big issue to tackle,” Cuomo told reporters in Manhattan.
