The American Gaming Association outlined its support for sports betting regulation at the state level in a short letter sent to Congress on Tuesday.
The letter, signed by AGA President and CEO Geoff Freeman and addressed to federal policymakers, provided insight on how the AGA wants to see the sports betting market operate following the repeal of the Professional and Amateur Sports Protection Act (PASPA).
AGA Supports State Solutions
One of the main points outlined in the letter was a commitment to letting states determine how sports betting should be governed, rather than involving the federal government.
“In the wake of the Court’s ruling, some have called for Congress to enact a federal framework to regulate sports betting,” the letter reads. “AGA believes this is unwise, unnecessary and out of step with public sentiment indicating 7 in 10 Americans think this decision should be left to each state, not the federal government.”
Many major sports leagues are among those who have asked for federal oversight of the emerging sports betting industry. The NFL, NBA, and MLB, among others, have said that they are in favor of a federal solution rather than state-by-state action.
“Congress has long recognized the potential harms posed by sports betting to the integrity of sporting contests and the public confidence in these events,” an NFL spokesman said hours after the Supreme Court decision came down last Monday. “Given that history, we intend to call on Congress again, this time to enact a core regulatory framework for legalized sports betting.”
Following Nevada Model
But the AGA pointed to history as well, saying that America already has an example of how state-level regulation can create a safe and vibrant sports betting environment.
“We also need not look any further than Nevada – where sports wagering has been legal since 1949 – to see this activity can be effectively regulated by the states,” the AGA letter said. “In Nevada, operators, regulators and sports leagues have worked together to ensure integrity for both betting operations and professional and collegiate sports.”
The letter also shares the AGA list of priorities for a successful sports betting market. That five part list shows a number of places where the industry group agrees with sports leagues, including the importance of strengthening game integrity. However, the AGA has also previously criticized other aspects of proposals from the NBA and MLB, including the leagues’ desire to receive an integrity fee from every bet taken on their games.
While the letter largely pushed the position that state-level regulation was the best way to control sports wagering, the AGA did acknowledge that the federal government could play a role as well.
“One notable example where Congress can make an immediate impact is reexamining the federal excise tax currently levied on sports wagers,” Freeman said in the letter. “This 1951 tax was originally intended to serve as an enforcement tool against illegal gambling, but instead hinders the ability of the legal market to compete with illegal operations that do not pay any taxes.”
With the Supreme Court striking down PASPA, there is currently no federal regulation of sports betting. Senator Orrin Hatch (R-Utah) has expressed his intention to introduce federal guidelines for sports wagering, but action on the issue is unlikely this year.
