Washington, D.C.
The American Gaming Association (AGA) has urged the United States Supreme Court to carefully weigh the consequences of maintaining outdated federal restrictions on sports betting. As states across the nation increasingly move to legalize and regulate sports wagering, the AGA argues that existing prohibitions do more harm than good by fueling a massive illegal gambling market that operates outside of government oversight.
Illegal Sports Betting in America
Estimates indicate that Americans illegally wager approximately $150 billion on sports annually, highlighting the significant scale of unregulated betting activity in the country. This figure, cited by various sources, underscores the disconnect between federal law and the realities of modern sports betting practices. The AGA asserts that bringing this substantial underground market into a regulated framework would not only enhance consumer protections but also generate considerable tax revenue for states.
The Case for Legalization
The push for legalization has gained momentum as states like New Jersey and Nevada have championed the cause, challenging the federal Professional and Amateur Sports Protection Act (PASPA) of 1992. PASPA effectively banned sports betting nationwide, with few exceptions. However, as public sentiment shifts and the economic benefits of legalized sports betting become more apparent, states are increasingly advocating for the right to regulate this industry within their borders.
The AGA points out that during the 2017 Super Bowl alone, Americans wagered an estimated $4.1 billion, with 98 percent of those bets being placed illegally. Furthermore, it’s projected that $90 billion will be wagered on professional and college football this season, the vast majority of which will also be placed on the black market. These statistics reflect the urgency of reforming current laws to better align with contemporary betting behaviors.
Market Projections and Economic Impact
Recent analysis suggests that the size of the U.S. sports betting market could be as large as $67 billion in legal bets placed today, potentially growing to even higher levels in the coming years. This growth could drive operator revenue to $5.2 billion by 2023, with some projections estimating it could surpass $6 billion. These figures demonstrate the potential economic benefits that a well-regulated sports betting industry could bring to the U.S. economy.
The AGA continues to advocate for a legal and regulated sports betting framework that would allow states to capture this economic opportunity while providing robust protections for consumers. As the Supreme Court considers cases that challenge PASPA, the gaming industry remains hopeful that the justices will recognize the need for change and take steps to modernize the nation’s sports betting laws.
