Retiring U.S. Senator Orrin Hatch said Thursday he plans to introduce legislation that would call for federal oversight of the nation’s growing legal sports betting market.
In a speech on the Senate floor, the Utah Republican, who has said he is not seeking re-election this year, said that the recent legalization of sports betting by individual states “has been a race to the bottom.”
Three states – Delaware, New Jersey and Mississippi – have launched sportsbooks at casinos and racetracks, and a fourth – West Virginia – expects to see its first sportsbook open by Sept. 1. Pennsylvania has also approved sports wagering regulations, and more than a dozen other states are exploring the issue.
“I firmly believe that we need a set of fundamental, federal standards that will protect the integrity of the game, consumers, and the sports wagering market,” said Hatch, one of the original authors of the 1992 Professional and Amateur Sports Protection Act.
In May, the U.S. Supreme Court declared PASPA unconstitutional and opened the door to allow individual states to legalize Nevada-style sports wagering. This past May, Hatch called for discussions in Congress on sports betting, but a scheduled hearing was canceled.
Hatch now says he will introduce legislation for federal oversight.
“Watching this flurry of activity in the states has only underscored for me the need for some consistent, minimum standards to protect the integrity of sports and the sports wagering market,” Hatch said.
The American Gaming Association, which supported New Jersey’s court case that led to the Supreme Court ruling, said Friday that federal oversight of sports betting “was an abject failure.”
In a statement, AGA Senior Vice President of Public Affairs Sara Slane said federal oversight led to a $150 billion illegal sports betting market.
“The Supreme Court decision removed this unconstitutional federal overreach, allowing states and sovereign tribal nations – who have proven to be effective regulators of all gaming – to decide what works best for their constituents,” Slane said. “The casino industry continues to work with lawmakers, regulators, sports leagues and law enforcement to ensure the proper protection for consumers and the integrity of bets and sporting contests are in place.”
In his address, Hatch admitted he wasn’t a fan of sports betting and has “grave concerns about gambling in general.” But he also said he was a realist.
“We can’t put the genie back in the bottle,” he said. “Prohibition is not a possible or prudent path forward.”
Hatch criticized the sports betting laws that have been approved in a few states. He said both West Virginia and Mississippi didn’t go far enough to ensure that players, coaches, officials and other participants don’t place wagers on games they are involved with.
“There is nothing wrong with there being differences among the states. That is the beauty of our federal system,” Hatch said. “But it does seem that when it comes to protecting the integrity of the game and the sports betting market, there should be some consensus — at least, some minimum standards – about who can place a wager.”
Slane said the AGA has volunteered to be a “resource to policymakers like Senator Hatch and his colleagues to ensure the position of the gaming industry is properly represented.”
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
