The state of New Jersey pushed the Supreme Court to deliver a big win for sports fans and state’s rights. And win big it did.
The state won a 6-3 Supreme Court ruling on Monday morning that will allow states to legalize sports betting. The court’s landmark ruling in Murphy v. NCAA gives this regulatory power back to the states, nullifying the Professional and Amateur Sports Protection Act of 1992. That law essentially outlawed sports betting in every state except Nevada.
Now, many states have the opportunity to get in on the revenue generated by sports betting which occurs illegally or abroad.
Back in October, Eilers & Krejcik Gaming estimated that the legalized American sports betting industry could be worth $7 billion to $16 billion by 2023 if all 50 states legalize sports betting.
Last year alone, the Nevada sports betting industry amassed $248 million in revenue, according to the Las Vegas Review-Journal. Plus, Eilers & Krejcik estimated there is an additional $2.5 billion to $3 billion in revenue amassed illegally offshore by bookmakers who are based in the U.S. It’s worth noting this is an industry that is on the rise, and since they projected Nevada’s revenue to balloon to $450 million by 2023, the offshore industries likely would have skyrocketed in the next few years as well if nothing were done.
Regardless of what side of the political aisle someone sits on, this decision can be seen as beneficial for individual liberty and the country as a whole. Through this ruling, a branch of the federal government is saying it should not be telling people how they can and can’t live their lives when they are not harming others.
It gives states an another avenue to generate revenue. Not only will states be able to pick up some much-needed tax dollars, but jobs will be available within the industry. Plus, there will be a higher supply of sportsbooks for consumers to choose from, forcing companies to compete against one another in the free market to create a better product for the people.
The ruling should also benefit pro sports leagues by generating more interest in them. It takes knowledge to win bets, which means people have to follow the teams and leagues closely to learn more about them. This may explain why the only top-tier pro sports team in Nevada, the Las Vegas Golden Knights, averaged 104 percent of their arena’s official seated capacity in attendance per game this season, their first season as an NHL team.
Major League Baseball and the National Basketball Association have both publicly said they support legalized gambling on their sports – they just want it to be strictly regulated by the government and for their leagues to profit from it.
But if the NBA, MLB, NFL, NHL, and even NCAA don’t like the ruling, that’s too bad for them. The highest court in the land made its decision decisively. Professional sports teams have received $3.7 billion worth of taxpayer-funded stadiums since 2000, so it’s about time local municipalities earned back some revenue from their existence.
Tom Joyce (@TomJoyceSports) is a freelancer writer who has been published with USA Today, the Boston Globe, Newsday, ESPN, the Detroit Free Press, the Pittsburgh Post-Gazette, The Federalist, and a number of other media outlets.
