Cover Story
Brendan Dwyer at VCU’s Center for Sport Leadership says some politicians see sports betting “as an opportunity to raise revenue without upsetting taxpayers.”
Dwyer, the director of research and distance learning at Virginia Commonwealth University’s Cen- ter for Sport Leadership. “I think that perception is changing, and I think politicians are seeing it as an opportunity to raise revenue without upsetting taxpayers.”
States cash in In May, the Supreme Court
struck down the 1992 Profes- sional and Amateur Sports Pro- tection Act. The law prohibited states from allowing betting on sports, restricting single-game wagering to Nevada. (Before the decision, Delaware, Montana and Oregon were also exempt and offered limited, pool wagering. Oregon ended sports betting in 2007 when it was courting NCAA championship games.) Anticipating the Supreme
reduce the influence of moral conservatives who say the state should have little to do with authorized gambling.” Now, the commonwealth is
presented with another possible choice — thanks to a recent U.S. Supreme Court decision that will dramatically expand legalized bet-
The early movers
Since the Supreme Court’s ruling, several states are offering – or soon will offer – sports wagering. Most states plan to impose taxes based on gross gaming revenue. Last year, Nevada’s sports gambling revenue was about $249 million. GamblingCompliance expects the sports betting market in New York, New Jersey and Pennsylvania to exceed Nevada’s revenues.
State Delaware
Betting locations Casinos
Mississippi Casinos Casinos
Effective state tax rate* (GGR) 50 percent ** 11-12
New Jersey Casinos, racetracks, online 9.75 (land based); 14.25 (online) New York
10
Pennsylvania Casinos, off-track betting centers, online
Rhode Island Casinos West Virginia Casinos, online
*Excludes federal excise tax of 0.25 percent of betting handle. ** Reflects states’ share of net wagering revenue.
36
51 ** 10
NOTE: GGR = Gross gaming revenue Source: GamblingCompliance
ting on all types of sports. Observers say sports betting
has the potential to be a revenue generator for the state. “There’s just a cultural
perception change on the per- ceived benefits and the perceived detriments of sports betting and betting in general,” says Brendan
Court’s decision, several states already had passed legislation pav- ing the way for sports betting. By June, casino visitors in
New Jersey and Delaware were placing bets on a host of sporting events, including the World Cup soccer championships and Major League Baseball games. Soon, gamblers in Pennsylvania, Mis- sissippi, West Virginia, Rhode Island and New York should be able to make similar bets. The sports betting industry
could be huge. U.S. sports wager- ing likely will produce $3.1 billion to $5.2 billion in annual revenue by 2023, predicts GamblingCom- pliance, a company that follows the global gambling industry. The demand certainly is
there. “There’s plenty of research to suggest that [sports betting is already] happening whether it’s illegal gambling or offshore gam- bling,” says Dwyer. Legalization would just drive more interest, he says.
GamblingCompliance
predicts that 25 to 37 states will approve sports wagering within five years. Because of its past reluctance to expand gambling,
26 AUGUST 2018 Photo courtesy VCU
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