NBA Requests Set of Laws That Would Help Legalize Sports Gambling in United States

https://www.google.com/amp/s/www.cb...-sports-gambling-in-united-states/amp/?espv=1



The NBA is acknowledging an elephant that has been in the room for a very long time, and one that many sports leagues try to ignore: Gambling and sports go together. There is currently a case in New Jersey related to the legality of sports gambling, which could change how it's handled nationwide. via ESPN.


The NBA fought against this in the past, but after researching it further, the league appears ready to flip its stance. According to ESPN, the NBA is going to request a set of laws that would help legalize sports gambling in the future, but also allow the NBA to make their own profit. Considering the billions of dollars that go into Vegas every year this could lead to a massive increase in money for the NBA.


In what could end up being a seminal moment for sports gambling in America, the NBA on Wednesday formally requested a set of laws that could be the basis for professional sports leagues pushing for national legalized wagering on games.
Dan Spillane, an attorney for the NBA, testified in front of a New York State Senate committee and for the first time made it clear what the league's price would be to become a partner in legalizing the multibillion-dollar industry.
The NBA wants 1 percent of every bet made on its games in addition to other regulations, a request that could create massive revenue for the NBA and other sports leagues in the future.


Spillane wants to limit action on certain types of bets that could be more easily manipulated. He used the example of prop bets Wednesday, such as placing a wager on who may draw the game's first foul.
The league also wants to protect consumers, including age restrictions and a "rigorous licensing program" for operators.*


If sports gambling were legalized, and the NBA was able to make the 1 percent revenue that comes in from that, it could lead to massive changes in how the game is covered. The revenue increase alone would likely lead to another cap and salary jump for teams and players. It will be interesting to see how this all plays out.

[h=1]NBA officially supports legalized gambling, wants a cut[/h]
NBA Commissioner Adam Silver has in the past made it clear that he believes gambling on the Association should be legal. At that point, there were a whole heck of a lot of hoops to jump through in order for this to come to fruition.

Though, the league is now making its stance on gambling official in the public eye. NBA attorney Dan Spillane testified in front of a New York State Senate committee on Wednesday, making it perfectly clear where the Association stands on this matter.


Spillane also noted that the NBA wants more widespread access for its fans to legalized gambling, including making it available on smartphone apps and kiosks around the league.


To say that this would have widespread financial implications around the NBA world would be a major understatement. The gambling industry in Nevada and other states in which it’s legal is already a multibillion-dollar industry. Giving access to gaming for all of the Association’s fans would be a financial boon for the NBA.


It would also be a seminal moment for the sports world in general. While the NFL and MLB are not necessarily as free-thinking as the NBA when it comes to this, their own bottom lines might suggest a need to fall in line should this come to fruition.

NBA To NY Senate: ‘We Support The Passage Of A Comprehensive Sports Betting Bill’
Eric Ramsey, Jan 24, 2018


This is a developing story and will be updated.

As expected, the NBA has taken a strong stance on the efforts to legalize sports betting in New York. The stance itself is pretty eye-opening, though.
This morning, the Senate Racing, Gaming, and Wagering Committee conducted a public hearing on the issue. In advance of the meeting, the NBA submitted written testimony for consideration.

The letter offers support for legalization at the state level, marking a significant shift in tone:
“…we support the passage of a comprehensive sports betting bill that would serve as a model for a 50-state solution — whether that happens in Congress or on a state-by-state basis.”

It’s the first official comments from the NBA on potential state regulation of sports wagering, although it was behind the inclusion of an integrity fee and other language in an Indiana sports betting bill.

The state is looking to legalize sports betting if the federal ban on single-game wagering is struck down. The state has already moved to legalize such wagering at commercial casinos. Some in the state want to expand that possibility to horse racing tracks and off-track betting parlors.

NBA addresses NY committee on sports betting

NBA Assistant General Counsel Dan Spillane submitted the testimony to the committee this morning.
“The NBA’s position on sports betting has evolved in recent years,” according to Spillane. The league has long supported the Professional and Amateur Sports Protection Act, the 1992 law that prohibits sports betting in most states. The NBA is a litigant in the ongoing New Jersey sports betting case, for instance, trying to stop the state from having wagering within its borders, by using PASPA.

As the industry takes shape, though — both legally and illegally — the NBA’s stance is beginning to shift.
Our conclusion is that the time has come for a different approach that gives sports fans a safe and legal way to wager on sporting events while protecting the integrity of the underlying competitions.

This sentence alone represents a significant change of course for the league. It also seems to indicate that the NBA anticipates a US Supreme Court ruling that is permissive of sports betting expansion.

How lawmakers can win the NBA over

In the past, the NBA stated that it would only support legalized sports betting at the federal level.
That is still the preference today. “We believe a federal approach is the simplest way to create clear and uniform protections for the integrity of our games,” Spillane said in his testimony.

However, the league also indicated that it would not oppose state-by-state legislation that includes the requisite safeguards. Spillane laid out five bullet points that the NBA would like to see included in sports betting legislation:

It should “enable the detection and prevention of improper conduct relating to sports betting”
It should pay one percent of betting handle to the leagues to fund compliance and enforcement
It should allow leagues to restrict wagering on their events
It should include consumer protections for bettors
It should include internet and mobile betting

“We urge the legislature to act as soon as possible to amend the existing law and create a robust regulatory structure that includes the protections we have outlined today,” Spillane concluded.

Lawmakers asked Spillane questions during Wednesday’s hearing, but did not question the possible inclusion of the proposed tax payable directly to the leagues. Whether the NBA would oppose state regulation if the integrity fee and other of its preferred policy points are not included in legislation is unclear.

Other tidbits from the NBA

There is a lot to unpack in Spillane’s letter. As part of the argument, he cites the growing popularity of legal, non-sports gambling in the US.
Most states offer lotteries, and there are hundreds of legal casinos and race tracks across the country. Regulated online gambling is still in its early stages but also is growing.
The letter contends that consumer protections in regulated sports betting markets have been effective, too.

In England, a sports fan can place a legal bet on a smartphone, at a stadium kiosk, or even on a television. There are extensive regulations in these jurisdictions to protect the integrity of sports and the consumers who place bets.

There is also some time spent highlighting the league’s physical presence in the Empire State. The NBA has been headquartered in New York since 1946, and it and has a total of five professional teams within its borders.

New York Knicks
Brooklyn Nets
Westchester Knicks
Long Island Nets
New York Liberty

There are of course no shortage of other pro and collegiate teams in the state.

The tone of the NY sports betting hearing

The hearing appeared to go well for anyone hopeful of an expansion of sports wagering in the state, and it brought together a number of gaming interests from inside and outside NY. Lawmakers on the gaming committee seemed genuinely interested in the subject, and often asked good questions of the witnesses.
In particular, lawmakers were very engaged on the integrity side of the sports betting issue. Lawmakers had a number of questions for representatives from Sportradar and Genius Sports, the two sports data companies that work with pro sports leagues and bookmakers on integrity matters.
There were few questions or statements from lawmakers that appeared to push back on the idea of expanded sports wagering.

No reason to rush on sports betting?

All of the stakeholders in New York appeared to be on board with moving forward with sports wagering, should lawmakers legalize it.
But Joseph Appelbaum, president of the New York Thoroughbred Horsemen Association, said the state should not rush into a law. He said that good policy should be the state’s goal, not creating a law as fast as possible, as he contends first-mover status is not an advantage.
Appelbaum’s stance doesn’t have much grounds in reality on the latter point. New Jersey and Pennsylvania are already poised to move forward with legal sports wagering with the right verdict. Those states would then attract visitors who are interested in betting on sports; if New York dawdles, this could certainly have a negative effect on the existing racing and gaming facilities in the state.

Pushing back on ‘integrity fees’

The “integrity fee” that the NBA is lobbying for — a one percent tax on handle that goes to leagues directly — is a new idea in the US sports betting space. It’s not currently in any New York legislation.

Joe Asher — CEO of William Hill US, which operates sports betting in Nevada — testified on Wednesday. He pushed back on the idea that an “integrity fee” would be a good idea in any state. A one percent tax on handle equates to roughly a 20 percent tax on revenue, he told the committee.
As such, that would create a challenging environment for sports betting operators to thrive. And, Asher said, a high tax rate would make it tougher for legal sports wagering to compete with online offshore sportsbooks that already operate illegally in the US. Those books have no taxes to pay to operate nor regulatory hurdles to clear.
Nevada sports betting has created a climate in which regulated sportsbooks can easily compete with offshore books, Asher added.

Online sports betting?

Many of those who testified at the hearing were in favor of allowing online sports betting in the state. That includes the NBA. Whether that will make it into any legislation in New York is unknown.
Online horse betting has been a boon to the horse racing industry. In fact, the New York Racing Association already operates online horse betting in states around the country via a website.
While online poker has seen slow going in many states — it’s currently legal in just four (Nevada, Pennsylvania, New Jersey and Delaware) — the possibility of online sports betting appears to be picking up steam in many states.

NBA officials are greedy...1% is way, way too much....

once the state or the leagues want a free and significant piece of the
action with no risk (as compared to a piece of the bottom line), one
ends up with a non-competitive situation similar to horse racing and
the horrible gamble it provides, especially compared to lower vig horse
matchups. in Nevada, there is, I believe, a small tax (federal) on each $ wagered,
fortunately it is miniscule. the only bets that the state/league can charge
this % is with parlays/teasers. legalized gambling will be a hit with
squares or those with no contacts despite the higher costs (think
Delaware), but it will not hurt the large US casinos and offshores to any
great degree unless the states offer comparable gambling odds which
is highly unlikely.