A pair of polar opposite U.S. senators either want a piece of the action or are chasing pesky sports betting kids off their lawns.
It’s understandable why Republican Senator Orrin Hatch of Utah and Senate Minority Leader Chuck Schumer of New York said a few days apart from each other that Congress should come up with a federal framework governing the nation’s growing legal sports betting market.
They were simply playing to their respective audiences.
Sen. Orrin Hatch, R-Utah, left, and Senate Minority Leader Chuck Schumer, D-New York, during a press conference on Capitol Hill.
There is zero chance any legislation will pass – or even should pass. The senators probably know this.
Hatch is from one of two states without any form of legalized gambling. He is also retiring this year, choosing not to seek re-election. Most importantly, he hates gambling in any form. He said so on the Senate floor on Aug. 23.
“I’d like to say upfront that I am not a fan of sports betting,” Hatch said. “I have grave concerns about gambling in general, and sports betting in particular.”
Schumer is from New York City, home to the major professional sports leagues’ headquarters. Leaders of the NBA and Major League Baseball have expressed a desire for “integrity fees” as compensation for the perceived increase in security because of sports gambling.
“As a New York sports fan … and a senator, my priority … is making sure the integrity of the games we love is preserved, that young people and those suffering from gambling addiction are not taken advantage of, and that consumers that choose to engage in sports betting are appropriately protected,” Schumer said in a statement on Aug. 29.
That should be the end of the conversation.
The U.S. Supreme Court in May overturned the Professional and Amateur Sports Protection Act of 1992, opening legal sports betting to any state. Washington D.C. lawmakers batted around the notion of a federal regulatory framework after the court’s ruling, but the idea faded quickly.
Individual states, however, didn’t waste time.
Delaware, New Jersey, Mississippi, and West Virginia enacted laws and have since joined Nevada in offering regulated sports wagering. Pennsylvania could have sports books open by the fall. More than a dozen other states are exploring the issue.
Capitol Hill jumping into the game now would just confuse the matter.
Other than sports gambling proponents and the American Gaming Association, there was very little reaction to the senators’ pronouncements – and rightfully so.
The Washington D.C.-based AGA – the gaming industry’s leading advocate – pointed out the federal government tried to regulate sports betting once before, through the enactment of PASPA. It was an “abject failure” that led to a “thriving illegal market with no consumer protections or safeguards,” AGA Senior Vice President Sara Slane said in a statement.
Democratic Rep. Dina Titus of Las Vegas, whose district encompasses the Strip corridor, said Nevada has the “gold standard” gaming model, and states are implementing that game plan. Congress should remain on the sidelines.
“Senator Schumer’s proposal for a federal framework could threaten our successful system and the potential for other states to follow suit,” Titus said. “We must be cautious at the federal level not to reinvent the wheel or derail what’s working.”
In the current political atmosphere – with a little more than 60 days before the mid-term election – very little will be accomplished in Washington D.C.
If concrete evidence and anecdotal information from the first weekend of college football betting in the newest gaming markets are any indication, it’s far too late for federal intervention.
In West Virginia, sports gamblers wagered more than $600,000 at the Hollywood Casino at Charles Town Races’ newly opened sports book. A chunk of the betting attention was given toward West Virginia University’s 40-14 win over Tennessee.
In Tunica, Mississippi, where all things SEC-football related constitute a religious experience, ESPN’s David Purdum found long lines of bettors looking to place wagers before the 11 a.m. kick-offs.
“This is SEC country,” longtime sports betting analyst Danny Sheridan, who lives in Mobile, Alabama, told Sports Illustrated. “They’re going to bet it like there’s no tomorrow.”
Beau Rivage’s sports book director told the magazine football wagering provided the largest wave of gambling the Biloxi, Mississippi casino had ever seen. Almost 5,600 bets were made by 1 a.m. Sunday.
This weekend brings the first full-slate of NFL regular season activity to the new betting markets.
For Congress to try and place oversight now on sports betting would be counter-productive. With four months left in the year, it’s unlikely any bill can be pushed through Washington D.C.
Your points are well-taken Senators Hatch and Schumer. But the states have this handled.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter
