PASPA repeal push heightens with launch of American Sports Betting Coalition

June 12, 2017 8:00 PM
  • Aaron Stanley
June 12, 2017 8:00 PM
  • Aaron Stanley

The push to repeal the federal ban on sports betting now has an official vehicle propelling its message.

Story continues below

The American Gaming Association launched the American Sports Betting Coalition on Monday afternoon, in conjunction with representatives from law enforcement, regulators and local government.

The group is seeking to build support for a legislative repeal of the 1992 Professional and Amateur Sports Protection Act, which effectively banned wagering on sports outside of Nevada.

Geoff Freeman, AGA’s president and CEO, emphasized that a “perfect storm” of organic momentum is has emerged to push for the repeal, as players unions, broadcasters, law enforcement, fans and regulators generally agree that the issue should be revisited. Professional sports leagues, long the largest source of opposition to sports gambling, have begun to rethink their stance on the subject.

“We are partnering with local and state elected officials, law enforcement and other diverse interests to tell Washington to get out of the way. Regulated sports betting is what fans want and sports integrity demands.”

So far in 2017, legislators in seven states have gone against the federal prohibition by introducing sports betting bills, including Pennsylvania, Michigan, South Carolina, New York, Maryland, West Virginia and Connecticut.

The AGA also released a new economic impact study, detailing that legalized sports betting in the U.S. would support as many as 152,000 jobs, while generating an estimated $26 billion in economic output and $5.3 billion in tax revenue.

Freeman said that the ASBC would mount an “aggressive campaign” to educate policymakers, law enforcement and stakeholders on the negative impact of the illegal sports betting market, to empower law enforcement with tools to monitor for illegal activity, to provide fans with an opportunity for greater engagement and to advocate for the repeal of PASPA in Congress and give states the ability to decide for themselves whether to adopt sports betting – as opposed to the creation of a national framework.

“At the core this is about federalism. My position is that this is about state sovereignty,” said Brad Schimel, Attorney General of Wisconsin and a member of the National Association of Attorneys General Executive Committee.

Schimel added that he is concerned by the public safety and consumer protection risks associated with illegal sports gambling. “These crimes don’t happen in a vacuum.”

Wisconsin was one of five states to file an amicus brief in support of New Jersey’s unsuccessful appeal to the U.S. Supreme Court to allow sports betting.

Shimel added that he supports a PASPA repeal based on its lack of utility. “Our resources as state Attorneys General are limited,” said Schimel. “We need laws that work not laws that are meaningless that dictate to us what we can and can’t do.”

Mick Cornett, Mayor of Oklahoma City and president of the U.S. Conference of Mayors, said that he supports repealing PASPA and funneling the proceeds of legal sports betting to local governments for use in combating organized crime.

“The negative repercussions of sports gambling weigh on first responders and local governments more heavily,” Cornett said. “Our efforts would be to make sure that local governments are compensated for the ways in which we currently deal with organized crime.”

Ed Davis, former Boston Police Commissioner, touched on his experience pursuing the legendary mobster Whitey Bulger to illustrate the impacts of illegal sports betting on local communities and law enforcement entities.

“The Whitey bulger case – that’s a good example of how organized crime networks utilize the money from sports betting as the oil that greases the wheel of all their other activities,” Davis said, emphasizing that the disruptions and the risks these groups pose to society can’t be underestimated.

“These guys have no restrictions, they will go any place they can to make a dollar,” he added. “If you were a bettor that didn’t pay up, you didn’t get taken to court by these guys, they came in and hurt you. That still goes on – it’s been pushed under the rug, not a lot of people talk about it.”