Gaming regulators agree with the casino industry’s largest trade organization that the federal government should stay away from attempting to regulate a developing U.S. sports betting market and leave the matter to individual states.
In separate statements Tuesday, the U.S. State Gaming Regulators Forum and the American Gaming Association reiterated their belief that states – many of which already have gaming laws, regulations, infrastructure and experienced regulators in place – can do the job.
Some 20 states are in various stages of approving sports gambling legislation or adding regulations. Some began the process prior to the U.S. Supreme Court ending the federal sports betting ban on May 14.
“Sports betting in Nevada has already been regulated with integrity and success, and gaming jurisdictions across the United States, including tribal jurisdictions, have demonstrated their ability to oversee gaming of all sorts while adhering to the highest standards,” the regulators’ forum, which is part of UNLV’s International Center for Gaming Regulation, said in their statement.
The regulators outlined a series of guidelines on sports betting that states should consider in governing the activity, including coordinated action between states to halt illegal booking and other illicit activities, structures to maintain game integrity, and various protection measures.
There was also opposition to the so-called “integrity fees” being sought by several sports leagues.
“Additional fees … increase the costs of legal sports betting, siphon much-needed tax revenues away from state coffers, and increase state regulatory burdens,” according to the forum’s statement, which was signed by Nevada Gaming Control Board Chairwoman Becky Harris, Massachusetts Gaming Commission Chairman Stephen P. Crosby, Louisiana Gaming Control Board Chairman Ronnie Jones and Michigan Gaming Control Board Executive Director Rick Kalm.
“The regulators couldn’t have said it better,” said Geoff Freeman, president and CEO of the AGA. “They have our full support, and we look forward to providing any assistance they may need.”
The Washington D.C.-based AGA sent a letter to all members of Congress outlining its position regarding the establishment of a sensible, regulated sports betting market. In it, Freeman wrote that the Supreme Court’s rejection of the 25-year-old Professional and Amateur Sports Protection Act (PASPA) made it “unwise” and “unnecessary” for Congress to get involved.
“The gaming industry is already one of the most-regulated in the country, and state and tribal regulators have decades of experience (in) effectively overseeing gaming operations within their jurisdictions,” Freeman wrote.
“As Congress has refrained from regulating lotteries, slot machines, table games and other gambling products, it should similarly refrain from engaging on sports wagering, barring an identifiable problem that warrants federal attention,” he added.
In a statement accompanying the letter, the AGA offered a set of five priorities that it plans to pursue as sports betting expands across the country, including empowering regulation, protecting consumers, game integrity, and responsible gaming.
In the statement, the AGA said it would “combat any attempts by the federal government to neuter state regulatory power.”
Nevada Congresswoman Dina Titus, D-Las Vegas, whose district includes the Strip, said she supports the idea of leaving gaming regulation up to the individual states. In a statement provided by her office, Titus said any legislation considered by Congress should not interfere with the “successful work” done at the state level.
“Sports betting is going to be new to many of my colleagues in Congress, but it’s not new for Nevada,” Titus said. “We know from experience that a state can be an effective regulator when it comes to gaming. Nevada’s regulators have been successfully operating for decades and have found what works in terms of consumer protections, licensing fees, and tax rates.”
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
