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US Supreme Court overturns federal ban on sports betting

Machinator

By Machinator
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Machinator

Machinator 32098

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Posted this on the gambling board, but this is big enough news that I think it's worth a thread on the most-trafficked sports board.

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WASHINGTON (AP) — The Supreme Court on Monday struck down a federal law that bars gambling on football, basketball, baseball and other sports in most states, giving states the go-ahead to legalize betting on sports.

The Supreme Court ruled 6-3 to strike down the Professional and Amateur Sports Protection Act. The 1992 law barred state-authorized sports gambling with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.

One research firm estimated before the ruling that if the Supreme Court were to strike down the law, 32 states would likely offer sports betting within five years.

“The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not,” Justice Samuel Alito wrote for the court.

The court’s decision came in a case from New Jersey, which has fought for years to legalize gambling on sports at casinos and racetracks in the state.

More than a dozen states had supported New Jersey, which argued that Congress exceeded its authority when it passed the 1992 Professional and Amateur Sports Protection Act, barring states from authorizing sports betting. New Jersey said the Constitution allows Congress to pass laws barring wagering on sports, but Congress can’t require states to keep sports gambling prohibitions in place.

All four major U.S. professional sports leagues, the NCAA and the federal government had urged the court to uphold the federal law. In court, the NBA, NFL, NHL and Major League Baseball had argued that New Jersey’s gambling expansion would hurt the integrity of their games. Outside court, however, leaders of all but the NFL have shown varying degrees of openness to legalized sports gambling.

The American Gaming Association estimates that Americans illegally wager about $150 billion on sports each year.

The 1992 law at issue in the case bars state-authorized sports gambling with exceptions for Nevada, Montana, Oregon and Delaware, states that had approved some form of sports wagering before the law took effect. Nevada is the only state where a person can wager on the results of a single game, though the law doesn’t cover wagering between friends. The law also doesn’t cover animal races, such as horse racing, which many states already allow.

New Jersey has spent years and millions of dollars in legal fees trying to legalize sports betting at its casinos, racetracks and former racetracks. In 2012, with voters’ support, New Jersey lawmakers passed a law allowing sports betting, directly challenging the 1992 federal law which says states can’t “authorize by law” sports gambling. The four major professional sports leagues and the NCAA sued, and the state lost in court.

In 2014, New Jersey tried a different tactic by repealing laws prohibiting sports gambling at casinos and racetracks. It argued taking its laws off the books was different from authorizing sports gambling. The state lost again and then took the case to the Supreme Court.

 

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UT Lawnghorn

UT Lawnghorn 758

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Just now, Machinator said:

Posted this on the gambling board, but this is big enough news that I think it's worth a thread on the most-trafficked sports board.

 

Can't wait for the NBA to set up betting kiosks in every stadium so you can bet live during the game. Shit just got real!

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Dnaguy

Dnaguy 11780

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1 minute ago, SimonBolivar said:

Good. There are things that need regulating in this country but morality isn't one of them.

It's a slippery slope, though. What's next, man? People betting on animals.... oh wait. Nm.

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Does this mean the daily fantasy brokers will start dumping huge cash into advertising again?

 

I have really missd all those ads.

 

outlawing gambling is dumb as hell.  That being said, I ‘d probably still just as well use my bookie.

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Dnaguy

Dnaguy 11780

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14 minutes ago, Beau Vine said:

If you read the opinion, it's barely about gambling. 

The opinion is approximately 2% about gambling, and 98% about the federal government shouldn't be telling the states what to do.

I'm not a lawyer or play one on tv.

Here's how I understand it:

So its not federally illegal to gamble.... but we won't allow any other states other than Nevada to legalize it because we froze any state's ability to allow for the legalization of gambling.

New Jersey's argument:

That's fucked up and we don't like it. We want to gamble dammit.

This seems like a pretty weighty and good way to sum up the SCOTUS' opinion with their own words :

Quote

"The PASPA provision at issue here—prohibiting state authorization of sports gambling—violates the anticommandeering rule. That provision unequivocally dictates what a state legislature may and may not do. And this is true under either our interpretation or that advocated by respondents and the United States. In either event, state legislatures are put under the direct control of Congress.It is as if federal officers were installed in state legislative chambers and were armed with the authority to stop legislators from voting on any offending proposals. A more direct affront to state sovereignty is not easy to imagine."

This whole grand exercise could be eliminated if instead of PASPA, the feds just outlawed gambling right? Could they then just give a waiver to Nevada as part of that law?

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VolenteHawk

VolenteHawk 495

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36 minutes ago, Walden Ponderer said:

Should be interesting to see whether this makes things more corrupt, less corrupt, or pretty much the same. Not being a gambler myself, I'll be watching with amusement.

I think it will land on "about the same".  There are lots of hands in the cookie jar for widespread sports gambling...leagues want compensation, governments want their piece, and ultimately those hands are powerful enough to get it done.  All in all, if I'm betting legally in Texas but paying a worse price due to all the mouths to feed, I'm going offshore or through a bookie, anyway.

 

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Beau Vine

Beau Vine 54016

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13 minutes ago, VolenteHawk said:

I think it will land on "about the same".  There are lots of hands in the cookie jar for widespread sports gambling...leagues want compensation, governments want their piece, and ultimately those hands are powerful enough to get it done.  All in all, if I'm betting legally in Texas but paying a worse price due to all the mouths to feed, I'm going offshore or through a bookie, anyway.

 

I think the leagues will heavily bribe -- excuse me, "lobby" -- state legislatures to license the newly-approved gambling, so that you will only be able to bet NFL games with an NFL-licensed bookie in your state.

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17 hours ago, Beau Vine said:

I think the leagues will heavily bribe -- excuse me, "lobby" -- state legislatures to license the newly-approved gambling, so that you will only be able to bet NFL games with an NFL-licensed bookie in your state.

yeah, sure...that's gonna work.  I would never be able to deal with the guilt of not using a state sanctioned wagering medium.

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Laga4

Laga4 1270

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20 hours ago, Steamboat1874 said:

Good luck getting our God-fearing leaders in Texas to agree to that.

 

VOTE !

This right here.

I live in East Texas and a lot of counties just just got alcohol in the last few years.  

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TwiceHorn

TwiceHorn 31322

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Posted (edited)
On 5/14/2018 at 9:50 AM, SimonBolivar said:

Good. There are things that need regulating in this country but morality isn't one of them.

Everything is morality, my dude.   Every piece of legislation imposes a moral value judgment at some level.

 

The better question is what on earth caused the Congress to believe there was a federal interest (other than the default, drooling idiot "interstate commerce") in prohibiting gambling?

 

This is a blow in favor of right-sizing the federal gubmint.  Although, it leaves the door open for further federal gambling legislation that has a different scheme (actual regulations instead of a ban on the authorization of sports gambling by the states).

Edited by TwiceHorn
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SimonBolivar

SimonBolivar 10949

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11 minutes ago, TwiceHorn said:

Everything is morality, my dude.   Every piece of legislation imposes a moral value judgment at some level.

 

The better question is what on earth caused the Congress to believe there was a federal interest (other than the default, drooling idiot "interstate commerce") in prohibiting gambling?

 

This is a blow in favor of right-sizing the federal gubmint.  Although, it leaves the door open for further federal gambling legislation that has a different scheme (actual regulations instead of a ban on the authorization of sports gambling by the states).

Yep you're right. I should have said you shouldn't regulate vice instead of morality.

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TwiceHorn

TwiceHorn 31322

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10 minutes ago, Vic Mackey said:

Someone explain to me the benefit of this. Now the states will step in and demand people be taxed on their winnings? I'll stick to my local bookie.

You are already taxed on your winnings.  Some states will permit sports gambling under certain conditions, some won't.  Probably as it should be.

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Vic Mackey

Vic Mackey 46937

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3 minutes ago, TwiceHorn said:

You are already taxed on your winnings.  Some states will permit sports gambling under certain conditions, some won't.  Probably as it should be.

I bet through a local bookie and he deposits the winnings into a Venmo account I have set up. If I lose, I deposit into his. I haven't been taxed on those winnings in the 2 years I have been doing it. But I don't bet amounts that would raise red flags for any type of audit.

I guess what I am getting at is why would I want to bet through something the state sets up and regulates?

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dingleberryswitzer

dingleberryswitzer 2724

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50 minutes ago, Gene Parmesan said:

Some people like doing things the legal way.

That and I imagine 90+% of people don't even have or know a "local bookie".  I don't and don't gamble enough to find one, or even sign up for an online bookie.  But if I could go down to the gas station and place a bet (just like buying a lotto ticket) I might do it occasionally just for fun.  

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maninblack

maninblack 7974

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7 minutes ago, DeadSalamander said:

Does this mean US IP addresses will no longer be blacklisted by overseas books (UK)?

This is the piece of the puzzle I'm curious how it will shake out. Will companies be able to start online businesses in states that have legalized and accept bets from people in states that haven't legalized?

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DanRydell

DanRydell 799

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This whole grand exercise could be eliminated if instead of PASPA, the feds just outlawed gambling right? Could they then just give a waiver to Nevada as part of that law?


Yes, Congress could still just criminalize sports gambling nationally and Nevada could be excepted.
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CooterBrown

CooterBrown 17943

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I'll bet some states (looking at you, Oklahoma) are going to look at this as a way to cut other taxes. Sports gambling will save the day!

Of course, in 5 years every state will have legalized sports betting and no one will go to their states for that and their revenue will crater even further. 

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Vic Mackey

Vic Mackey 46937

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2 hours ago, Gene Parmesan said:

Some people like doing things the legal way.

How many people today don't gamble because its illegal? I will say not many. If you want to gamble, you do it. Either a local bookie or the countless online bookie sites. It's not a big deal to do it. It's not as dangerous as getting into the drug business. The way it is set up these days, any Joe Schmoe can do it with no worries. You aren't going to have the feds come knocking at your door doing this.

I found a local bookie through someone on this board and he's great. It's a flawless system how he has it set up. My dad used to use a local bookie over 2 decades growing up.

I don't need the states taxing my winnings on my bets. 

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Hiphopopotamos

Hiphopopotamos 20865

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2 minutes ago, Vic Mackey said:

How many people today don't gamble because its illegal? I will say not many. If you want to gamble, you do it. Either a local bookie or the countless online bookie sites. It's not a big deal to do it. It's not as dangerous as getting into the drug business. The way it is set up these days, any Joe Schmoe can do it with no worries. You aren't going to have the feds come knocking at your door doing this.

I found a local bookie through someone on this board and he's great. It's a flawless system how he has it set up. My dad used to use a local bookie over 2 decades growing up.

I don't need the states taxing my winnings on my bets. 

I don't think thats true at all.    I haven't gambled in years - but give me the opportunity to place small wagers, via an app on my phone, while I'm watching a game and I'll damn sure be doing it.

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Vic Mackey

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2 minutes ago, Hiphopopotamos said:

I don't think thats true at all.    I haven't gambled in years - but give me the opportunity to place small wagers, via an app on my phone, while I'm watching a game and I'll damn sure be doing it.

But you can already do that....

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1 hour ago, Beau Vine said:

Wow, I seriously never would have guessed that you were a moral relativist.

Not sure I follow you.

 

The laws we have on gambling and booze are idiotic. There is zero reason why I used to not be able to buy a case of beer in Lubbock.  It’s equally moronic today that we cannot have a casino in developed commerical areas in Texas.

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Gene Parmesan

Gene Parmesan 3993

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If you define gambling in the broadest sense and include stuff like friendly wagers and office brackets, probably not many.  But a lot of people (like me) don't gamble because it's illegal.  Not based on some moral obligation of being lawful, but simply because it's not front in center in the mainstream.  I don't care how easy/safe it is to find a local bookie or setup online offshore stuff.  I have no urge to do those things.  I would however place a bet in store or something similar to any other impulse / scratch off / lottery purchase.

I don't think the casual gambler is who they are really after though.  At least from my POV I would only place a handful of bets a year.  I would assume they plan on converting plenty of gamblers from their current setup.  Do people still by weed under the table in states where it's been legalized at the same rate as before?

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Hiphopopotamos

Hiphopopotamos 20865

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1 minute ago, Vic Mackey said:

But you can already do that....

I have no interest in giving my credit card to an offshore bookmaker.  I get that for you and many others this is an insignificant obstacle that you have no problem overcoming to place a wager.  I think I'm in a rather large population of people that would occasionally gamble, but will literally stop at the first obstacle.

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