Internet gambling in the US has been limited to just three states since it began in 2013, but it could soon get a big boost from an unlikely source: the US Supreme Court.
Some gambling industry officials, regulators and analysts think that a favorable ruling by the high court in New Jersey’s challenge to legalize sports betting could also lead to an expansion of Internet gambling.
“If we win sports wagering, online gaming will go to every state that adopts sports betting,” said David Rebuck, director of the New Jersey Division of Gaming Enforcement, who predicts a favorable sports betting ruling could help Internet gambling “explode” across the nation. “As soon as sports wagering is legalized, online gambling will follow right behind it.”
Super Bowl proposition bets displayed on a board at the Westgate Las Vegas SuperBook race and sports book in Las Vegas on January 27, 2015. /AP Photo
Super Bowl proposition bets displayed on a board at the Westgate Las Vegas SuperBook race and sports book in Las Vegas on January 27, 2015. /AP Photo
The Supreme Court will hear arguments in New Jersey’s case on Dec. 4; a ruling could be weeks or months away. The state is aiming for a 1992 law that forbids state-authorized sports gambling in all but four states that met a 1991 deadline to legalize it: Delaware, Montana, Nevada and Oregon. Nevada is the only state to allow single-game wagering.
The sports leagues oppose the lawsuit, arguing that legalized sports betting could taint the public’s perception of the integrity of their games.
Americans already illegally bet up to 60 billion US dollars annually on sports using offshore sites and bookmakers, according to Eilers & Krejcik Gaming. It estimates that 32 states could offer legal sports betting within five years if the Supreme Court rules in New Jersey’s favor, creating a legal market of more than six billion US dollars. If all 50 states joined in, the US market could be worth up to 15.8 billion US dollars, they estimate.
States are already prepping for a favorable ruling on sports betting: 13 introduced legislation regarding sports betting this year. Pennsylvania and Connecticut both passed measures to regulate sports betting if it becomes legal.
Experts think that the sports betting legislative push would likely help expand Internet gambling.
David Schwartz, who runs the Center for Gaming Research at the University of Las Vegas-Nevada, says that offering online casino games and sports betting would go hand-in-hand online.
“It makes a lot of sense to offer sports betting over the Internet,” he said. “Once you have the systems for letting people bet on sports in place, it isn’t a huge step to permit them to bet on casino games or poker as well.”
New Jersey, Delaware and Nevada began offering Internet gambling in 2013 and it will start in Pennsylvania next year.
Internet gambling on a touchscreen tablet device /AP Photo
Internet gambling on a touchscreen tablet device /AP Photo
New Jersey is by far the largest market, on track to take in 250 million US dollars from Internet gambling this year. Delaware had taken in just over two million US dollars this year through the end of October, and Nevada does not report its Internet gambling revenue separately from its brick-and-mortar casino revenue. Sports betting through mobile apps is also offered in Nevada.
New Jersey recently joined a multi-state compact with Nevada and Delaware to allow players to bet against each other, which could help allay complaints by some online poker players that the jackpots offered are too small to attract more players.
Richard Schwartz, whose Rush Street Interactive oversees operations for the playsugarhouse.com Internet gambling site, said that merging sports and Internet betting would attract a new, coveted demographic.
“I think it would attract a customer in their 30s or younger instead of the mid-40s or older that you see in casinos now,” he said. “It’s a new demographic that is very attractive.”
Source(s): AP