The near-monopoly that Nevada holds on sports betting is almost over. This will probably prevent Nevada sportsbooks from achieving record-setting revenues again this year.
The US Supreme Court on Monday cleared the path for states other than Nevada to legalize sports betting, striking down the Professional and Amateur Sports Protection Act (PASPA). This 1992 federal law had prohibited sports betting everywhere except Nevada. The law made an exception for limited sports gambling in Delaware, Montana, and Oregon.
PASPA declared unconstitutional
The Supreme Court ruled PASPA to be unconstitutional with a vote of 6-3. Justice Samuel Alito, as stated in the court’s written decision, asserted that states should have the autonomy to decide on sports gambling. This verdict potentially paves the way for the legalization and regulation of sports betting nationwide.
As New Jersey was the state challenging PASPA, its racetracks and casinos are expected to be the first to start accepting bets, potentially drawing business away from Nevada sportsbooks. However, they will not be the only ones to do so.
Other states passed legislation to legalize sports betting, anticipating that the Supreme Court would rule in favor of New Jersey. These states encompass:
- Pennsylvania
- Delaware
- Mississippi
- Virginia West
In the coming months, sports books will be operational in these states. This implies that gamblers who used to place sports bets while on vacation in Las Vegas will soon have the opportunity to participate in this activity in their local areas.
In addition, numerous states have contemplated comparable sports betting legislation in recent months. The Supreme Court ruling could potentially provide the impetus these states require to enact their own sports gambling laws. The states in question are:
- California
- Connecticut
- Illinois
- Indiana
- Kansas
- Kentucky
- Maryland
- Massachusetts
- Minnesota
- Michigan
- Missouri
- NY
- Oklahoma
- The State of Rhode Island
- Carolina of the South
No need to travel to Nevada
Once more than half of the states in the country, potentially including these, legalize sports gambling, individuals won’t have to visit Nevada to place a legal bet.
The American Gaming Association estimates that the illegal sports betting market is worth $150 billion a year. Legal sports betting has been lauded as a method to tax and regulate this industry. However, a portion of the estimated three percent of that money legally wagered in Nevada each year may also be lost.
Last year, Nevada sportsbooks hit record-breaking revenues. The Nevada Gaming Control Board reported that the total revenue from sports betting in 2017 reached a record-breaking $248.8 million. This surpassed the previous record of $231.8 million set in 2015. Remarkably, Nevada sportsbook revenues first exceeded $200 million in 2013 and have been continually rising since.
- 2013: $202.8M
- 2014: $227M
- 2015: $231.8M
- 2016: $219.2M
The total sum wagered, or ‘handle’, in the state astonishingly hit $4.87 billion in 2017, setting new records. In comparison, Nevada sportsbooks had a handle of $4.51 billion in 2016. Impressively, the handle has surpassed $4 billion for three consecutive years.
Growth in mobile wagering
Insiders from the industry report that sportsbooks have seen an increase in betting across all sports, a phenomenon largely attributed to mobile wagering. Over twelve sportsbooks in Nevada currently provide mobile apps, enabling gamblers to place bets using their smartphones or other internet-enabled devices.
- MGM
- Station Casinos/ STN Sports
- Superbook at Westgate
- Nugget of Gold
- Hill William
- Boyd’s BConnected
- Point South
- Wynn
- Island of Treasure
- Atlantis
- Caesars
- VSiN
Out-of-state sports betting will be missed
Determining the exact amount of money wagered at Nevada sportsbooks by visitors from states that will now have their own legal sports betting may be challenging. However, it’s clear that a proportion of that money will no longer be placed at Nevada sportsbooks.
Futures bets are certainly going to be impacted. There will no longer be a necessity for out-of-state tourists to stake a bet on their local team winning the championship outside their home state.
The total sum dealt with at Nevada sportsbooks will undoubtedly be lower than the record $4.87 billion set last year. Regardless of the impact of mobile wagering in Nevada, the Supreme Court’s decision to allow other states to legalize sports gambling will be the evident reason for this decline.
