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п»їLegal Sports Betting Is Bigger than Ever -- But COVID Could Hurt Bets on the Big Game.
Sports betting is more popular, and legal, than ever, and one of biggest draws for bettors every year is wagering on the Big Game. But, like everything else right now, COVID-19 is having an impact on football betting this year.
In the video below, we'll take a closer look at why wagers on Sunday's game will likely be lower than usual, and how online sports betting -- fueled by companies like DraftKings (NASDAQ: DKNG) -- are scratching an itch for those wanting to place bets during socially distant times.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Video: How these investors view the recent Big Tech bounce (CNBC)


America’s Laws Against Gambling And Sports Betting.
When discussing legal online sports betting, the majority of America's government has a very regressive, prohibition-style attitude towards it, buying into a negative perspective concerning the morality of gambling entertainment. This is what has led to a variety of state gambling laws in the past.
There are no US federal laws that make it a crime for Americans to place bets at offshore sportsbooks that are operating legally within the industry. There are two states that legally prohibit all online gambling, domestic or offshore, leaving residents in Connecticut and Washington without legally sanctioned online betting options, though they have yet to start enforcing those restrictions.
For the most part, state lawmakers are becoming more progressive concerning betting entertainment and recognize the value that this type of revenue stream can bring to a state. Individual states are actively analyzing what the legalization of domestic sports gambling can provide them with in terms of opportunities, tourism, and tax revenue, and many have already taken action one way or the other through new legislation.
Iowa, Nevada, New Jersey, Oregon, Pennsylvania, Rhode Island, and West Virginia currently permit state-regulated online sports gambling, with nearly two dozen additional states having launched land-based sportsbooks. Individual territories began embracing sports betting the moment that PASPA was ruled unconstitutional by the Supreme Court in the infamous NJ case, with multiple states having had their legislation ready and waiting should the ruling go in the Garden State's favor.
Below we'll take a look at the relevant US federal gambling laws, and explain how state gambling laws intersect with federal laws to impact online and brick and mortar sportsbook gambling, as well as what these laws have to say about the legal status of offshore sports betting entertainment.
The Federal Laws on the Books.
The sections below will detail and explain how each major federal law affects domestic gambling opportunities in the US.
The Federal Wire Act.
Passed back in 1961, the Federal Wire Act was made law in an effort to curtail the illegal gambling activities taking place over the phone by organized crime syndicates. It prohibited the transmission of wagers or betting information from being carried across state lines via telegraph or telephone. The Federal Wire Act targeted these illegal bookie operations as a means to curb the mafia from manipulating games and making a profit through these tactics.
This law was strictly focused on interstate gambling, and only targeted those accepting bets and not the individuals placing the bets. The goal was to crack down on illegal gambling services, not prosecute bettors. Between the DOJ Legal Opinion of 2011 and the repeal of PASPA, today's application of the Wire Act prohibits any gambling business from accepting bets across state lines or from foreign sources.
With the changes still being implemented, we are not sure yet how this will affect those states that had entered into interstate gambling pacts with one another, sharing player pools for their online gambling initiatives. Once that aspect of the legal situation becomes more clear we will update that information here.
The Professional and Amateur Sports Protection Act.
Also known as the Bradley Act, or just PASPA, the Professional and Amateur Sports Protection Act was a sweeping federal regulation that passed in 1992, with the supposed intent of protecting the integrity of sports by making sports betting illegal.
At the time the bill was passed, there were sports lotteries in Delaware, Montana, and Oregon, as well as licensed and regulated sports betting in Nevada, so those four states were exempt.
The law effectively prevented the expansion of the sports betting market throughout the United States in what many categorized as a discriminatory law that favored a few states while restricting others.
New Jersey took on the mission of challenging the law and after several years of court battles, was given a favorable outcome by the highest court in the land as SCOTUS ruled PASPA as unconstitutional, nullifying the law.
As of May 14, 2018, each individual state now has the authority to dictate sports betting laws within their borders. They can now choose to authorize or prohibit sports betting at their pleasure. Following PASPA's repeal, we have seen multiple states move forward with legislation that legalizes sports gambling at the state level.
The Unlawful Internet Gambling Enforcement Act.
This is the big one that shook the gambling industry to its core. Online gambling really started to explode during the early 2000's, especially in the realm of online poker. In 2006, then-President Bush signed into law the Unlawful Internet Gambling Enforcement Act, known all over as the UIGEA. In a nutshell, the UIGEA placed very stringent regulatory restrictions concerning how gambling-related transactions could be processed.
The most reputable sites started a countdown and allowed Americans to withdraw and closeout their accounts. Many trusted gambling sites left the US market at this time. After the dust settled, and the financial and gambling industries learned how to comply with the regulatory oversight provided by the UIGEA, many of these reputable gambling sites have returned to provide services to US sports bettors.
The UIGEA did end up making the online gambling market safer for both the bettors and the operators by imposing a more reliable and stricter regulatory structure for how gambling-related transactions are processed. Gambling sites invested in top tier payment processors while all parties implemented higher-level security protocols to ensure the validity and safety of those transactions that are processed.
While US online gambling funding options are still somewhat limited in some regards, things have stabilized. The emergence of cryptocurrencies have filled the void left by the elimination of US-friendly e-wallets and failed credit card transactions. The UIGEA does not make it illegal for Americans to gamble online. The law simply regulates how online gambling transactions are processed.
The 2011 Department of Justice's Interpretation of Federal Laws.
With the growth of online commerce, several states became interested in offering lottery game services online. This raised questions concerning the application of the Federal Wire Act, driving the DOJ to issue a clarification of the law's reach.
The Department of Justice ruled, and accurately so, that the federal government had no right to tell states that they could not sanction online gambling and therefore established that each US state has the authority to determine their own fate concerning online gambling with the exception of sports betting.
The repeal of PASPA took care of freeing sports gambling as the last remaining federally prohibited form of state-regulated online gambling. As of now, all 50 states have the legal ability to legalize and offer online gambling such as casinos, poker, bingo, and sports wagering. To date, only a handful of states have taken advantage of legal domestic online gambling. However, many states have pending bills to allow various forms of sports betting.
The 2019 DOJ Interpretation of Federal Gambling Laws.
Following the repeal of PASPA in 2018, the reach of the Federal Wire Act has again come into question. In a new interpretation, which many believe was coerced by anti-online gambling activist Sheldon Adelson, the Department of Justice has indicated that the Wire Act prohibits not only interstate wagers but also the sharing of information across state lines.
This determination will certainly harm those states that have entered into interstate gambling compacts to share player pools and resources with other states. The opinion is being formally challenged through a lawsuit headed up by New Hampshire. As the situation unfolds, we will provide updates here.
What You Need to Know Going Forward.
All of this legal information is good knowledge to have under your belt, no doubt about it. However, all you really need to know going forward is that there are no federal laws making gambling illegal in the United States either online or offline, and this includes domestic and offshore sports betting. States now determine the legal status of all gambling entertainment within their borders. As a sports betting resource guide, we want to make this point clear.
For those of you interested in betting on sport but who live in a state that has not authorized state-regulated sportsbooks, you'll have to either travel to a state with legalized sports betting or use a legitimate offshore sportsbook such as the ones you find listed on this site. You can check out our list of states that allow sports betting here or follow our list of recommended online sportsbooks.


Cuomo to initiate legal mobile sports betting in New York.
STATEN ISLAND, N.Y. -- As part of his State of the State address next week, Gov. Andrew Cuomo will call for legal sports betting -- online and on mobile devices -- in New York to help raise revenue amid the state’s $14 billion financial losses during the coronavirus (COVID-19) pandemic.
Under Cuomo’s proposal, the New York State Gaming Commission will issue a request for proposals to select and license a sports operator or platform to offer mobile sports wagering in New York. This operator or platform must have a partnership with one of the existing licensed commercial casinos, Cuomo said. The Commission will also require any entity operating mobile wagering apps include safeguards against abuses and addiction.
In the past, Cuomo hasn’t supported legalized mobile sports betting. But facing an estimated $15 billion deficit this coming fiscal year, the governor has embraced the idea.
“At a time when New York faces a historic budget deficit due to the COVID-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets,” Cuomo said. “New York has the potential to be the largest sports wagering market in the United States, and by legalizing online sports betting we aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the COVID-19 crisis.”
The sports gambling market is evolving rapidly. In 2018, the U.S. Supreme Court in Murphy v. NCAA overturned a federal law prohibiting most states from authorizing sports wagering.
Sports wagering is now legal online in 14 states, including the bordering states of New Jersey and Pennsylvania, while it is only legal in New York at the four Upstate commercial gaming facilities and Native American gaming facilities.
An industry study found that nearly 20 percent of New Jersey’s sports wagering revenue comes from New York residents, costing the State millions of dollars in lost tax revenue.


Recapping Busy Start for 2021 Sports Betting Legislation.
Lev Radin/Pacific Press/LightRocket via Getty Images. Pictured: Gov. Andrew Cuomo.
A few weeks into 2021, lawmakers in more than a dozen states have already introduced sports betting legislation or have announced plans to do so.
Here’s a state-by-state recap of some of the most important such bills filed during a frantic start to the 2021 legislative session:
Georgia.
A bipartisan group of lawmakers in the state House of Representatives introduced a mobile sports betting bill last week that would allow at least six individually branded online licenses under the purview of the state lottery.
Status: The bill has not been assigned yet to a committee but it is being championed by Rep. Ron Stephens, who chairs the House Economic Development & Tourism Committee. That means it should at least get a serious look.
Look Ahead: Georgia came surprisingly close to passing legal sports betting last year, backed by Republican fiscal conservatives and the state’s professional sports organizations. However, any gaming bill still faces opposition from religious and social conservative organizations and lawmakers. The back-and-forth between these factions of the GOP could determine sports betting’s 2021 hopes.
Connecticut.
After years discussing legal sports betting, Connecticut finally seems on the verge of legal wagering legislation passing into law.
Status: A bipartisan, bicameral bill with 17 sponsors — and the backing of Gov. Ned Lamont — was filed last week and now awaits further action in the Joint Committee on Public Safety and Security.
Look Ahead: The bill offers few details beyond approving the state’s two gaming tribes to open retail and online sportsbooks, as well as online casinos (the state lottery would also be able to expand its offerings). Significant work is required before this bill could pass but the fact so many lawmakers are on board, as well as the tribes, gives online sports betting and casino gaming a great chance to pass, even if it looks like there may be limited wagering options.
Missouri.
Lawmakers have already introduced six sports betting bills, meaning the Show Me State will once again consider legal wagering, even though significant logistical and political hurdles remain.
Status: Bills have been introduced in both the House and Senate but only one has been assigned to a committee.
Look Ahead: Missouri lawmakers must weigh sports betting against an ongoing legislative fight over video lottery terminals, which would have a far larger financial consequence than even online sportsbooks. Lawmakers must consider the casino industry interests while also determining if the state should regulate thousands of unlicensed “grey” gaming machines that are already in existence, legalizing new machines or banning them outright. They also will have to do so remotely, at least for this week; the 2021 legislative session has been suspended due to a COVID-19 outbreak.
Kentucky.
Rep. Adam Koenig is once again spearheading mobile sports betting legislation, this time with 16 co-sponsors. But after a similar 2020 bill faltered following a promising start, this year’s legislative session leaves little wiggle room for what appears a long-shot effort.
Status: This year’s bill hasn’t been taken up by a committee yet but assuming it advances as its counterpart did in 2020, the real question remains if it will get a vote before the full House floor.
Look Ahead: Kentucky gaming bills always face tough odds in a state with strong anti-gambling sentiment but this year, lawmakers are more focused on restoring historic horse racing terminals — and, more so, a major budget crunch execrated by the COVID-19 pandemic. With an already truncated odd-numbered legislative session to begin with, sports betting may struggle to gain much traction in Frankfort.
New York.
Assemblymember J. Gary Pretlow and Sen. Joseph Addabbo have introduced identical bills in their respective chambers that would allow up to 14 online mobile operators as well as betting kiosks at professional sports stadiums and off-track betting venues.
Status : Both bills could see votes in their respective gaming committees as early as this week, but that vote isn’t as important as a budget proposal expected from Gov. Andrew Cuomo in the coming days.
Look Ahead: Cuomo surprised the gaming world earlier this month when he came out in support of legal online wagering but just as quickly angered stakeholders when he said he wanted only one operator. A press statement released last week indicated the governor may support a multi-operator model, but it will have to come with the backing of lawmakers already looking to advance a proposal of their own. The fate of New York online betting depends on finding an agreement on either a multiple operator or single operator model. Cuomo’s draft budget could go a long way toward that solution.
South Dakota.
After voters backed a 2020 ballot measure to legalize sports betting last fall, lawmakers introduced follow-up legislation in January that would lay out key regulatory and taxation details for retail sportsbooks in the historic gaming town of Deadwood, as well as Native American casinos.
Status: The bill in South Dakota has been assigned to the Senate State Affairs Committee and could be discussed as early as this month.
Look Ahead: Passing a retail sports betting bill seems like a safe bet in 2021. Online sports betting is the bigger question. Though gaming is only allowed in Deadwood, some mobile betting backers believe online wagering could be permitted statewide if the computer servers are physically within Deadwood limits. Though it would mean far larger revenue potential, it’s a logistically, politically and possibly legally more difficult endeavor, and the initial bill’s lack of mobile betting authorization indicates it may not even be considered in this year’s session.
Massachusetts.
Lawmakers discussed a handful of sports betting bills in 2020, including one sponsored by Gov. Charlie Baker, but elected officials couldn’t reach consensus despite bipartisan support. The General Court is set to take up wagering bills again in 2021, but some of the logistical hurdles remain.
Status: Rep. Bradford Hill introduced a trio of mobile sports wagering bills last week, and more are set to follow in the Senate (and possibly the House). With the state’s year-long session just beginning, additional legislation to follow and more pressing budget concerns to consider, it could be a while before these specific proposals see much momentum.
Look Ahead: Massachusetts, which has increasingly embraced gaming in recent years as competition for gambling dollars grows in other New England states, has frustrated the sports betting industry with its failure to advance legal wagering despite the latent political support. With statewide, legal wagering already in Rhode Island and New Hampshire (and likely in Connecticut) there’s more motivation than ever to pass a bill. Politicians still must work out operator access, college betting legality and a host of other issues they’ve struggled to reach consensus on in recent years.
Other States.
Several more are poised to introduce sports betting legislation in the coming weeks, while others with legal wagering already are working on growing their betting options.
Legislation Pending: Maryland is all but guaranteed to take up fleshed-out legislation later this year after voters overwhelmingly backed a 2020 referendum that legalized sports betting. Texas, Minnesota and Arizona are among the next wave of states that could also see legal sports betting bills in 2021.
Expanded Options: Officials in Oregon, Washington and Virginia have filed bills that would increase the number of legal sportsbooks in their respective states. Additional sports betting bills could face political obstacles, but it’s nevertheless a sign of political interest for expanded markets.




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