September 26, 2018
(Washington, DC) – On the heels of this year’s Supreme Court decision overturning PASPA, the 1992 federal law banning all but a handful of states from licensing sports betting, Consumer Action for a Strong Economy (CASE) is urging Congress to let states determine their own gaming rules, without interference from Washington. The House Judiciary Committee is set to hold hearings on the matter on Thursday of this week.
In a statement from CASE President Matthew Kandrach and Vice President Gerard Scimeca:
Sports fans across the country are enjoying another season of fantasy football leagues, office pools, and big-time matchups with a watchful eye on the point spread. Wagering on sports is a growing business that now enjoys the support of a majority of Americans, and for the first time in two decades the federal government is no longer dictating the rules.
Wagering on sports can now come out of the shadows, and instead of living in a make-believe world where some pretend sports betting doesn’t exist, this multi-billion dollar industry can be legitimately licensed and regulated by the states, as the Supreme Court ruling held. This is a tremendous opportunity for Congress to allow state frameworks to take the lead, put consumers first, put the integrity of sports contests front and center, and realize the benefits of job creation and new streams of tax revenue which will benefit local communities and the public at large.
We urge Congress not to repeat the mistakes of PASPA, which drove sports betting underground, and helped criminal enterprises thrive at the expense of our law enforcement. Onerous fees and unnecessary regulations mandated by Washington will only make it more difficult for licensed operators to compete with overseas or illegitimate sports books, essentially returning us to the days of PASPA where illegal betting thrived.
Fees are always passed on to consumers, and regulations that limit choice and opportunity for states to determine their own rules that work best, must be avoided. We especially object to so-called “integrity fees” which appear to serve no legitimate purpose other than as a payout to billionaire sports team owners for the privilege of betting on contests. These fees will drive consumers to the illegal market where there are no consumer protections. If we are to maintain the integrity of integrity, enforcement should be left to law enforcement and state regulatory bodies, period.
Congress must respect state-sovereignty on this issue, as they do with most entertainment and leisure industries. This is the best path forward by letting the best ideas thrive in the marketplace and affirm the new framework of sports wagering that benefits consumers, licensed operators, and law enforcement, while promoting the many economic benefits that arise from this immensely popular past time.
