Sports Betting in the United States

Category: Literature
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Sport betting is and has been illegal in 46 states since the early 1900’s. Since sports betting is illegal in most states in the United States even gambling is only legal in Nevada, Hot Springs Arkansas, and on the water in Mississippi. Reports show the ‘gaming community’ predicts sports betting becoming legal in 14 states within two years including Mississippi, Michigan, Pennsylvania, and Connecticut.

Billions have been spent on legal sports betting in Las Vegas, Nevada. But the sports wagering came to an end when Governor Chris Christie of New Jersey challenged a federal law that requires states to ban wagering on sports. The professional and amateur sports protection act does does not ban sports betting nationwide, instead it states that the states can not permit gambling. The U.S. Supreme Court struck down a federal law from 1992 that bared it in most places.

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The major reason that sports betting is illegal is because the United States sports league called this type of betting is a threat to integrity of competition, fearing game fixing, and other types of cheating. Some states see sports betting, like lottiers, as a potential source of tax revenue. As of right now the American Gaming Association estimates that there is over &150 billion dollars going into sports betting every year.

The justices struck down the entire federal law on a 6-3 vote. This meant the court voted against New Jersey’s law, but the Supreme Court agreed with New Jersey’s argument that the federal law compelled states not to license or regulate sports betting. “The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own,” Justice Samuel Alito wrote on behalf of the court.

Experts predict that sports leagues and players’ union, even dozens of states, will actually get a cut of the revenue from expanded sports betting. In May the United States Supreme Court overturned a federal law banning sports betting in most states. Giving states the ability to decide whether or not the states allows the betting in different forms. Delaware and New Jersey started to allow Las Vegas type betting, Mississippi and West Virginia are expected to be up and running by the next football season. Mississippi will be the first southern state legalized for sports betting. It’s 28 casinos will add sports wagering and revenue tax will be at 8% by state and up to 4% by government.

When it comes to sports betting Arkansas the statute forbids sports betting. Arkansas legislators can propose legislation to enact sports betting that could take form in a number of formats, on-site casino, retail locales and online. No such bill had ever been suggested, however a bill on the constitution might be on the November ballot making sports betting legal by the citizen votes. In May 2017, the American Gaming Association, a casino group, released a report projecting the economic impact of legalized sports betting in each state. It broke down projections based on betting format and using three tax rates base 10%, low 6.75% and high 15%. Those tax rates applied to the gross gaming revenue, or amount retained by the sports betting operation after payment of prizes. On top of that is a 0.25% goes towards federal funding.

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Sports Betting in the United States. (2020, Apr 27). Retrieved from