Sports Betting in 2016

1. Don’t bet against it! Legal Online Sports Betting

2. Current Law on Sports Betting in the U.S. • The Professional Amateur Sports Protection Act • (PASPA) was enacted by Congress in 1992 • PASPA makes it illegal to bet on professional • and amateur athletics. • Four states, Nevada, Oregon, Montana, and Delaware, were grandfathered in as exceptions • under PASPA because they had some form of sports wagering at the State level at the • time of enactment. (Nevada is unique in that it is the only State in the United • States that has legalized licensed sports books, which comes under PASPA’s • exceptions. (28 USC §3704)

3. Specific Language of PASPA • 28 USC Section 3702, the main provision, provides that: • It shall be unlawful for • (1)a governmental entity to sponsor, operate, advertise, promote, license, or authorize by law • or compact, or • (2) a person to sponsor, operate, advertise, or promote, pursuant to the law or compact of a • governmental entity, a lottery, sweepstakes, or other betting, gambling, or wagering scheme • based, directly or indirectly (through the use of geographical references or otherwise), on • one or more competitive games in which amateur or professional athletes participate, or • are intended to participate, or on one or more performances of such athletes in such • games. • PASPA's only remedial scheme, found in Section 3703, allows a sports organization or the • United States Attorney General to seek injunctive relief if Section 3702 is violated:

4. PASPA Opponents • PASPA received opposition from Senator Chuck Grassley of Iowa and also the Department ofJustice ("DOJ"), because they felt that PASPA will be a "substantial invasion" into states'privileges. • Senator Grassley contended it would discriminate one of the states since thegrandfathered states might have a monopoly on sports gambling. • The DOJ continued to state that "determinations of methods to boost revenue have typicallybeen left towards the states.“. Senator Grassley contended that “if the professional sports leagues were trulyworried about the chance of 'fixed' games [and] the integrity of professional sports , they'd have searched for to stop the $1.8 billion mind-to-mind sports wageringindustry in Nevada."

5. PASPA Supporters • The Professional and Amateur sports leagues havecomplained that sports gambling ruins the integrity of the sports. They don't wantfans to consider the “fix was in” whenever a questionable play happens.However, since PASPA’s enactment, there has been several instances of point shavingthat will lead someone to believe the integrity of sport will be challenged,no matter whether sports gambling is legal. • Among the greatest advocates of PASPA was Senator Bill Bradley, formerprofessional basketball player and Nj Senator. Senator Bradley was concernedthat condition-approved sports gambling would send the incorrect message to children thatsports center around gambling instead of achievement and sportsmanship.Senator Bradley also thought that gambling would injure the integrity of sport byleading to fans to wonder if a skipped shot or fumble was "fixed." He "thought that the harm that condition-backed sports betting causes'-that's, threatening theintegrity of sports within the eyes of both fans and youthful people-far outweighed thefinancial advantages received.

6. Do Federal Laws Really Prohibit Sports Betting Within States? • 18 U.S.C. § 1084 - The Government Wire Act ("Wire Act") forbids using wirecommunications in wagering on the sports event. Together, PASPA and also theWire Act add up to what seems to become a defacto prohibition on the internet sportswagering. • 18 U.S.C. § 1952 - The Travel Act - prohibits using the U.S. mail, or interstate orforeign travel, with regards to participating in certain specified criminal functions. • 31 U.S.C. §§ 53161-5367 - The Illegal Internet Gambling Enforcement Act of2006 - forbids gambling companies from knowingly accepting obligations inreference to the participation of some other part of a wager or wager thatinvolves using the web which is illegal under any federal or condition law

7. Economic Impact of Sports Betting In Nevada • This Year, $2.88 billion was legally gambled in Nevada’s sports books (Note:While roughly $2.88 billion was gambled this year, greater than 95 % ofall bets placed were came back to patrons in winnings). By June 2012, Nevadahas 216 legal sports books. • The Nation's Gambling Impact Study Commission (NGISC) believed that illegalwagers are around $380 billion gambled unlawfully yearly. • Based on the Nevada Gaming Control Board, roughly $93.9 million was gambled around the 2012 Super Bowl at legalized sports books over the condition, butthe majority of that figure was came back to gamblers by means of winnings.

8. Sports Betting as a Revenue Source • Most states use lotteries to finance public education, economic development, conditionparks and gambling problem treatment, what exactly is wrong with legalized sports betting? • Questions States Ought To Be Asking: • Is PASPA any excuses for the us government to thwart a State’s capability to raiseits very own revenues? • Does PASPA violate the Constitution’s tenth Amendment and also the CommerceClause? • Should PASPA be repealed for economic reasons? Could it be outdated? Archaic?(Example to legalisation of marijuana at condition level)Why shouldn’t States be free to setup their very own taxing schemes fromsports wagering?

9. Why New Jersey? • This Year, NJ Condition. Sen. Raymond Lesniak (D) imagined a big change that will mention to$100 million to condition coffers in taxes, generate billions in betting, spark economicactivity, and throw lifelines to casinos and also the equine-racing industry. • "Our casinos suffer, our racetracks are dying, and ourcondition budget needs revenues,«  • "Just how can Congress say to folks from the condition of recentJersey, 'You don't have this right the individualsNevada do?” Lesniak stated. • He suggests, amongst other things, the federal law doesn't evenly regulate commerce and it is excessively broad and vague.

10. New Jersey Taking on the Feds? • Nj congress have lengthy was adamant PASPA is unconstitutional • November. 9, 2011 - Following a two-year lengthy effort, within the courts as well as in the condition legislature, Nj votersextremely supported the start of legal sports wagering in Nj. Voters approvedthe constitutional question with a final margin of 65% for, 35% opposed. The bets might beplaced at equine tracks throughout Nj and casinos in Atlantic City. • Jan. 17, 2012 - Nj Governor Chris Christie signed into law a constitutional amendment which willpermit sports wagering in the State’s casinos and race tracks. Governor Christie signed the balance whichmay take effect once PASPA continues to be overturned or repealed. Governor Christie made the decision that ratherthan challenging PASPA in the court and seeking to overturn what the law states, Nj will implement sportsgaming by The month of january 2013. • August 2012 - August the NCAA together with the National football league, National basketball association, NHL, and Major league baseball, filed a suit in federalcourt trying to stop Nj from applying sports gambling. Situation Number: 12-cv-4947

11. New Jersey Sports Betting • December 21, 2012 - Based on a Wall Street Journal report, US District JudgeMichael Shipp agreed using the Nfl, Mlb,Basketball, Nhl, and National CollegiateSports Association they might suffer injuries if such gambling werelegalized within the condition. • Following, Governor Christie stated - “We plan to move ahead and also to problem sportsgaming licenses where appropriate, and also to have this take place in our condition.”

12. Judge Shipp’s Order • For that reasons mentioned within the Opinion filed about this date, as well as for othergood cause proven,It's about this 21st day's December, 2012, Purchased that: • 1)Litigants have shown standing which situation will proceedtowards the merits” • 2) Defendants’ Motion to Dismiss (ECF No. 29) is Refused • 3) Defendants’ Mix Motion for Summary Judgment (ECF No. 76) isRefused in to date because it challenges Plaintiffs’ standing4) Plaintiffs’ Motion to Preclude the Expert Testimony of Robert D.Willig (ECF No. 98) is administratively ended as moot and5) To start dating ? for dental argument concerning the constitutional issues is going to bereleased after The month of january 20, 2013.

13. Other Challenges Involving Sports Betting • Confronted with a mounting budget crisis, Delaware made the decision to provide a larger rangeof sports betting games on non-Delaware sports occasions, including individualgames in the professional and college level. The condition-run betting operationwas set to start in September 2009. The 4 major professional sportsleagues - baseball, basketball, football, and hockey - and also the National Collegiate Sports Association sued to bar the Delaware sports betting operation. • The Problem: if the federal law’s grandfather clause ought to be read broadly topermit states to function an array of gambling options, or if theclause ought to be read narrowly to authorize just the same wagering gamesoffered within the condition between 1976 and 1990. • The 3rd Circuit ruled the Delaware plan exceeded the narrow scope from thefederal law’s grandfather clause. The condition could run exactly the same games it went in1976 but might not expand individuals games or include new games, the appealscourt ruled. The United States Top Court let stand an appeals court ruling theDelaware’s intend to run an broadened sports betting operation is barred with afederal antigambling law. - Markell v. Office from the Commissioner of Baseball,et al.

14. Other Challenges to PASPA • In Flager v. U . s . States Attorney for that District of Nj, a personal citizen of Njchallenged PASPA for the reason it violated the Tenth Amendment because "the energyto outlaw sports wagering wasn't specifically granted to the us governmentInch through theMetabolic rate. A legal court didn't address the Tenth Amendment claim and ignored the situationholding the complaintant didn't have standing. Situation Number: 2:2006cv03699, filed: August 7,2006, Nj District Court .In Interactive Media Entertainment and Gaming Association, Corporation. v. Holder. • Interactive MediaEntertainment and Gaming Association, Corporation. ("iMEGA"), Nj condition senatorRaymond Lesniak, and also the Nj equine-racing industry sued from the U . s .States Attorney General, Eric Holder, declaring that PASPA was unconstitutional and violatedthe very first, Fifth, Tenth, Eleventh, and Fourteenth Changes additionally towards the EqualProtection & Commerce Clause. The federal government searched for to dismiss the situation for insufficientstanding and failure to condition claims. • A Legal Court ruled the Complaintant didn't have standing which underneath the tenth Amendment (theState’s express and implied reserved forces to manage matters affecting its people includingthe raising of revenue) was restricted to america only and also, since Nj wasn't a celebrationfor this suit, Complaintant doesn't have standing. (2011 WL 802106)

15. Most Recent Legislative Efforts • April 26, 2012 - Repetition. Frank LoBiondo (R-NJ second) and Repetition. Frank Pallone, Junior. (D-NJ sixth) have requestedpeople of america House of Reps to aid two bills brought to roll back theFederal prohibit on broadened condition-licensed sports betting.Inside a letter to co-workers, Reps. LoBiondo and Pallone requested people to:.Support H.R.3809, “the Nj Betting and Equal Treatment Act of 2012.,which seeks ”to exclude the Condition of Nj in the prohibition on professional andamateur sports gambling”. • Support and H.R.3797 - “the Sports Gaming Chance Act of 2012. , whichwould amend Sections 178 of Title 28 USC to “permit a 4-year period [for] States toenact statutes…[for] wagering schemes including professional and amateur sports. Noaction was adopted either bill apart from referral to Committee.Congress was requested to think about the economical advantages of movingback the Professional & Amateur Sports Protection Act of 1992

16. If State’s Can Legalize Marijuana to Raise Revenue, Why Can’t States Legalize Sports Books for Same Reason? • Colorado's legalisation of marijuana campaign recommended money for college construction. Advertisementsmarketed the measure using the saying, "Strict Regulation. Fund Education." Conditionexperts project approximately $5 million and $22 million annually inrevenue for Colorado. An economist whose study was funded with a professional-pot groupprojects a $60 million boost by 2017, stated Christopher Stiffler, an economist for thatnonpartisan Colorado Focus on Law & Policy. • Washington State’s campaign guaranteed to devote over fifty percent of marijuana taxes tosubstance-abuse prevention, research, education and healthcare. Washington Conditionexperts have created probably the most generous estimate of methods much tax revenue legal potcould produce, at nearly $2 billion over 5 years. • Oregon's measure, referred to as Cannabis Tax Act, would devote 90% of leisuremarijuana proceeds towards the state's general fund. Oregon's fiscal experts haven't evensuspected in the total revenue, stating the numerous questions natural inside a new marijuanamarket. They've forecasted prison savings between $1.4 million and $2.4 million annually if marijuana use was legal with no doctor's recommendation.

17. Conclusion • On balance, the greater legal and policy arguments militate in support of realizing theStates’ natural privileges reserved for them underneath the Metabolic rate to enact laws and regulations to boostrevenues, and particularly, laws and regulations permitting sports wagering. • Exactly why is sports wagering sacrosanct towards the Federal PASPA laws and regulations pre-empting the areawhen other casino gaming laws and regulations and certification are consistently worked with in theparticular Condition level. If marijuana sales is now able to legalized Condition by Condition within theirparticular discretion, isn’t legalized sports wagering a fortiori argument. • Does Federal Policy developing a “back door” monopoly on sports wagering to Nevadacasinos and sports books make sense at all?.The insurance policy clearly impedes on the State’s privileges and encourages illegal sports wageringactivity through “bookies” and sports wagering on the web. • Given recent trends for states to workout their privileges to legislate their very own ConditionGuidelines on other types of casino gaming, PASPA’s prohibitions on sports wageringappear arbitrary, capricious and archaic and no more justified.

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