“Legalizing sports betting in the US could generate millions in taxes and protect consumers”

Despite the prohibition, illegal sports betting has continued growing and experts estimate that Americans spend around USD 400B per year on the activity. What are the risks posed by current legislation?

Prohibitions never work; all they do is drive otherwise law-abiding people into the black market. By legalizing and regulating the enormous sports gambling market, states could not only collect potentially millions of dollars in tax revenue, but also institute consumer protections to protect minors and those susceptible to gambling addiction

How has the federal ban on sports betting affected the wider gambling industry over the past years?

Due to increased competition for gambling dollars, cities like Atlantic City in New Jersey have been scratching for new sources of revenue. Casinos, racetracks, and even lotteries would love to offer the types of games that consumers want to play, clearly sports gambling is among them. The current law, however, prohibits them from innovating and hampers their ability to profit. Often, this means that the tax revenue such businesses generate, which we use to fund public services like road building and schools, are less than they could be.

Supporters of the ban believe a possible legalization of sports betting would promote match-fixing and erode public trust in games. What is the best legal approach toward addressing these concerns?

First of all, it shouldn’t be the federal government’s job to protect the “integrity” or reputation of profit-earning businesses. However, legalizing sports gambling would actually reduce the risk of match-fixing because leagues could work with the gaming industry—as they do in Europe—to identify and address possible corruption. Currently, even if bookies in the U.S. wanted to alert authorities to the signs of corruption, they can’t due to fear of prosecution.

During his presidential campaign, Trump said he was "OK" with sports betting. Do you reckon the ban is more likely to be lifted under his administration?

Republicans traditionally support “states’ rights” to regulate in-state matters as they see fit. With a former casino owner in the White House and Republicans controlling Congress, there is a good chance that a bill that would return the power to states to choose whether they legalize and regulate sports gambling would make it through the legislative process.

What are the key aspects a well-regulated gambling market should take into consideration when drafting regulation? Is Nevada a good model of consumer protection?

New Jersey’s implementation of Internet gambling is a good model other states might follow because it has rigorous standards for protecting consumer data, complying with federal and state laws, blocking minors, and addressing disordered gambling.