Regulated internet betting in the United States
If we reverse the clocks by one year, not many would predict that the United States will have three jurisdictions with some forms of legalized online gambling. Nevada was already on its way to having regulated online poker within its borders when 2013 started and while it took it a while to launch, it was the first state to do so.
Delaware and New Jersey then followed and didn’t just legalize online poker, but an array of casino games. However, US regulated online sports betting remains out of the question and while the odds of it happening in 2014 are not that good, it is quite likely that American punters will get a bit closer to seeing their dream come true.
Of course, the grey markets already have various online sportsbooks that cater to the United States but if the success of iGaming in New Jersey showed us anything, is that regulated sites are preferred amongst players.
Looking at the current regulations
There is a lot of misunderstanding around the current legislature and how it applies to online sports betting in the United States. The Wire Act of 1961 is one of the major ones since it has been an issue for online gambling in the country for a long time. Initially, the Interstate Wire Act was made to prohibit sports betting between states with the use of a telephone or other wire devices. Since the internet wasn’t available yet, experts argued over the past few years if online gambling is also banned by this law.
Despite the fact that the Justice Department claimed that the Wire Act refers to all forms of online gambling, it was only available for interstate wagers; meaning that internet betting could be available within a certain state as long as it doesn’t include players or operators from outside the borders. Nevada had legal sports betting for years before the Justice Department changed its stance and claimed that the Wire Act only refers to sports betting and doesn’t include other forms of gambling, such as poker and casino games. But again, it only applies for interstate sports betting.
The Unlawful Internet Gambling Enforcement Act of 2006 is a bit different but it doesn’t ban online gambling, as some people may think. In fact, the UIGEA restricts financial transactions for internet gambling and focuses on making it illegal to fund an online gambling account, rather than the actual act of gambling. However, states that opt to legalize online gambling can go around the UIGEA and allow banks to accept financial transactions for the regulated offers.
Opposition from the major sports leagues
In 2012, New Jersey tried to legalize sports betting, like in Nevada, but it didn’t go through due to strong opposition from the Justice Department and the major leagues in the country. The NHL, NFL, NBA and NCAA argued that the legalization of sports betting in New Jersey, or in other states, would hurt the integrity of the games.
New Jersey Gov. Chris Christie did not agree with this and stated that the prohibition is illogical and that it allows the sports betting black market to thrive while limiting the options in the United States. He made several federal appeals and decided to take the issue to the Supreme Court. The outcome can very well decide the future of sports betting in the United States.
Not leaving online sports betting behind
At the end of the day, it remains unlikely that online poker and casino games can become available in states which wish to legalize them while sports betting remains behind. Concerns about how this will affect the sports and how a bigger sports betting industry can lead to corruption remain the biggest problems. While it is unlikely they will get solved in 2014, this year should represent a few important steps forward.
