It all happened fast, so here’s what legal gambling means in both a general and legal context:
The Professional and Amateur Sports Protection Act of 1992 prohibited states from authorizing sports gambling to safeguard the integrity of sports, but does this argument hold any ground?
When examining the case that began the legitimization of sports gambling, Murphy v. NCAA, there are implications for all the major sport leagues- pro and amateur ranks (view it here) regarding the Tenth Amendment of the United States Constitution; or whether the federal government has the right control state lawmaking. The ruling of that case opened the doors for states to allow casinos, bookmakers, and other businesses to get into an industry that was originally illegal, and under the table. Bettors will no longer be forced into the black market or travel to the vibrant Las Vegas, instead placing bets will be done on mobile devices, fueled, and endorsed by lawmakers and sports officials; including those who oppose the idea. For argument’s sake, if $380 billion could be legally wagered in the United States and say that about 4.6 percent of total wagers are kept for gross gambling revenue- that’s approximately $17.48 billion nationwide that can be taxed and distributed at appropriate levels, such as state and local governments. An industry as large as this can seem unlimited with benefits, but haven’t we seen this idea explored before?
The little green plant is still illegal at the federal level, but states across the union have either legalized marijuana or decriminalized it to some extent; and today, the production, distribution, and sale of the drug has become big business (read more here).
Though it is noted that about $40 million a year is given from marijuana excised taxed and licensing fees for school construction in Colorado, there are big folks out there with the incentive to try and regulate out the small-timers. Those “mom and pop” businesses struggle to live up to those big-time parameters, which makes them less to comply and compete in space.
The same can go for the sport-betting universe.
Big operators will emerge, whether it’s from the leagues themselves, partnership, or another major media company, creating complications for the rest of us. The freedom of states to draft their own law for sports gambling could also create very messy legal patchwork, all in effort to comply with the different state laws. Understand the headache? This could create some problems for the leagues and may not maximize the profits for the industry in general.
But that’s not all
Everyone would be inclined to join the bet, and this doesn’t exclude the performers either… Legalized sports gambling may be good for business but can ruin an entire sport just because the league or a teammate wanted a piece of the action.
However just a probability, bribing teammates to throw games has been prevalent before and is the reason certain laws were put in place.
The people and businesses who will benefit, for the most part, will be those who have power and money to spare already.
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