The U.S. Supreme Court opened the door for states to legalize sports wagering and the American lottery industry said it doesn’t want to be shut out of the action.
In a statement, the North American Association of State and Provincial Lotteries (NASPL) said it was “keenly focused” on new wagering activities that might divert money from lotteries, which provide funds to support education and other government backed programs.
“As states begin to consider sports wagering, the lottery industry is ready to help establish the real-world network that would be involved if called upon to do so,” said Charles McIntyre, the president of NASPL, which represents all government sanctioned lotteries in the U.S. and Canada.
McIntyre, who is also the executive director of the New Hampshire Lottery, said the lottery industry long opposed restrictions on state-sponsored gambling, such as the 25-year-old Professional and Amateur Sports Protection Act (PASPA), which limited sports betting to four states – Nevada, Montana, Oregon and Delaware. Only Nevada offered full-scale sports betting.
Last week, the Supreme Court, by a 6-3 vote, ruled that states could ignore PASPA and states had the right to regulate and tax sports wagering. Some 20 states with either commercial or Indian casinos – including New Jersey, which brought the action against PASPA to the Supreme Court – are exploring legalizing sports gaming.
In 2011 and 2012, the NASPL – in reaction to a potential federal government ban on Internet gaming – adopted and reaffirmed a resolution that states had the right to determine their own legal gaming alternatives.
The trade organization noted that lotteries offer sales more than 200,000 retail locations across the U.S., including bars, clubs and taverns “that would be natural venues for sports-betting products.” Also, some American lotteries already sell their products on the internet, “a potential avenue for sports betting if a state allows that option.”
McIntyre said lotteries have “the technical expertise” to offer sports information to gamblers via websites and mobile apps.
American Gaming Association spokesman Casey Clark said the organization the represents the casino industry, agrees that states should regulate sports betting.
“States don’t have to look further than Nevada for a model on how to operate a successful, legal sports betting market,” Clark said. “There is no need to reinvent the wheel.”
In the last few years, there has been a convergence between the lottery industry and manufacturers of casino equipment. The industry’s two largest slot machine manufacturers, International Game Technology and Scientific Games, both have large lottery equipment and systems divisions. Many of the popular slot machine games can be found utilized in state lotteries.
Earlier this year, Scientific Games acquired NYX Gaming Group, which provides digital gaming and sports betting platforms worldwide, including to jurisdictions with Internet lotteries.
“NASPL respects the sovereignty of state governments to legislate gambling within their respective jurisdictions,” McIntyre said. “Member lotteries operate within strict state laws to transparently support benefits to good causes while protecting the population by offering safe games in a legal and socially responsible manner.”
The organization said the Supreme Court’s ruling “will help preserve the founding principles and integrity of American lotteries.”
The NASPAL said the lottery industry funded more the $22 billion in state programs, services and scholarships in fiscal year 2017.
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