New Jersey sports betting case could help expand Internet gambling

"If we win sports wagering, online gaming will go to every state that adopts sports betting," said David Rebuck.

2017-11-23

Reading time 1:37 min

Internet gambling in the United States has been limited to just three states since it began in 2013, but it could soon get a big boost from the U.S. Supreme Court, which will hear arguments in New Jersey's case on December 4.

Some gambling industry officials, regulators and analysts think that a favorable ruling by the high court in New Jersey's challenge to legalize sports betting could also lead to an expansion of internet gambling.

"If we win sports wagering, online gaming will go to every state that adopts sports betting," said David Rebuck, director of the New Jersey Division of Gaming Enforcement, who predicts a favorable sports betting ruling could help internet gambling "explode" across the nation. "As soon as sports wagering is legalized, online gambling will follow right behind it."

The Supreme Court will hear arguments in New Jersey's case on Dec. 4; a ruling could be weeks or months away. The state is taking aim at a 1992 law that forbids state-authorized sports gambling in all but four states that met a 1991 deadline to legalize it: Delaware, Montana, Nevada and Oregon. Nevada is the only state to allow single-game wagering.

The sports leagues oppose the lawsuit, arguing that legalized sports betting could taint the public's perception of the integrity of their games.

Americans already illegally bet up to US$ 60 billion annually on sports using offshore sites and bookmakers, according to Eilers & Krejcik Gaming. It estimates that 32 states could offer legal sports betting within five years if the Supreme Court rules in New Jersey's favor, creating a legal market of more than US$ 6 billion. If all 50 states joined in, the U.S. market could be worth up to US$ 15.8 billion, they estimate.

States are already prepping for a favorable ruling on sports betting: 13 introduced legislation regarding sports betting this year. Pennsylvania and Connecticut both passed measures to regulate sports betting if it becomes legal.

Chris Grove, who tracks gambling legislation for Eilers & Krejcik Gaming, predicted at least 20 states will consider similar bills next year, and possibly more if the court rules in favor of New Jersey.

Experts think that the sports betting legislative push would likely help expand internet gambling. David Schwartz, who runs the Center for Gaming Research at the University of Las Vegas-Nevada, says that offering online casino games and sports betting would go hand-in-hand online.