Modifying the Bradley Act: US sports betting

Friday, 15 Feb, 2013

US states of Minnesota, California and New Jersey are in the process of passing new gambling bills that will allow online casinos and sports betting in these regions. Lawyers across the nation are urging the senate to ban these bills for various reasons.

The 1992 Professional and Amateur Sports Protection Act, also known as the Bradley Act, banned sports betting in most US regions. However, despite the financial crises, many states grew concerned with the rise of illegal betting, which was estimated to be an $80-to-$380-billion-a-year industry complete with money laundering and tax avoidance.

State politicians, the IRS and casino operators are concerned with the economic pressure from Las Vegas narrowing the possibilities for other states.

Minnesota just passed a gaming bill (HF 522) to permit sports pool betting and local state lotteries. This bill confronts with the Bradley Act because US federal laws strictly forbid pool betting.

Nevertheless, the bill forbids internet sports wagering, imposes an 8% tax on operators and vetoes betting on college sports.

Last week, New Jersey Governor, Chris Christie, rejected the gambling bill but recommended a series of amendments for it to have better chances of being passed. The changes stipulate a ten-year limitation on the bill and a 15% tax on casino revenues. Intrastate sport betting is now under discussion, and there is a possibility for a plan to be issued in the next two weeks.

Spokespeople from New Jersey stated that the federal government holds no right to control the state’s ability to govern its citizens or the judgment of the government of the state of New Jersey.

California is not behind in the gambling bill race. Senator Rod Wright is pushing the online gambling bill and the legalization of sports betting. Wright’s SB 1390 gambling bill was rejected last year, but after a few modifications, it attracted the Republican’s attention and has good chances of taking the lead at the Assembly.

Authorizing sports wagering at California’s horse racing tracks and satellite wagering facilities on fair grounds, card clubs, and tribal casinos, for instance, could … bring more people into these facilities on slow business days, said Wright on the SB 1390 bill, summing up that such a plan might provide the vital financial help to the racing industry and provide the state with additional tax revenues.

These three states may soon become the new US gambling meccas, although not as fast as some economists and casino operators might expect.