The US Supreme Court ruled Monday that states can move to legalize sports betting, which had previously been limited to Nevada and most notably Las Vegas casinos.
It’s a decision that could have widespread ramifications for major sports leagues in the future now that the hard line that previously separated the two industries is wiped away.
Once word of the decision spread, multiple sports leagues have issued statements in response to the Supreme Court’s decision.
The statements varied in nature, but had the same overarching message which states each league will try to protect itself from spoiling the integrity of the game.
Below are the statements from the NHL and the NFL.
“The Supreme Court’s decision today paves the way to an entirely different landscape – one in which we have not previously operated. We will review our current practices and policies and decide whether adjustments are needed, and if so, what those adjustments will look like. It’s important to emphasize that the Supreme Court’s decision has no immediate impact on existing League rules relating to sports wagering, and particularly, wagering involving NHL games. So, while changes may be considered in the future, today’s decision does not directly impact the operation of the League or any of our Clubs in the short term.”
Boston Sports Journal contacted the NHL office in New York. A spokesperson said that their “existing League rules relating to sports wagering,” as referenced in the statement, prohibit obvious instances such as players wagering on games. Another spokesperson on the matter did not return a message inquiring about what the rule technicalities encompass.
The NFL statement is below as well.
NFL statement on today’s big development. pic.twitter.com/R35rY8Bql8
— Albert Breer (@AlbertBreer) May 14, 2018
BSJ Analysis
This is a complicated matter that is going to be treated delicately going forward. Gambling on sports was treated as a taboo subject. It was legally enclosed to Vegas, which virtually meant that gambling in physical sportsbooks was separated from the sports realm until the Vegas Golden Knights came to the desert. ESPN had an interesting story when the Golden Knights season began about how uncomfortably close a professional sports team was in proximity to legalized sportsbooks.
The NHL’s statement was interesting in that they stated they’ll “review current practices and policies and decide what adjustments are needed, and if so, what those adjustments will look like.” The NHL has demonstrated here that they’re willing to adapt to whatever changes this decision may bring.
What strikes me as the most obvious is the impact this decision will have on marketing and sponsorships in the sports world. That Cumberland Farms advertisement at Fenway Park could be replaced by one for the MGM Grand. That’s an obtuse example, but it captures the idea of what could unfold in the future.
Quite frankly, this is going to be another avenue for leagues to make money and they’d be smart to capitalize on it.
Imagine going to the concourse for a beer and a hot dog? Stop at the Bellagio stand behind Section 10 and place a bet on the second-half spread.
NBA Commissioner Adam Silver seems to be ahead of his time in light of the Supreme court ruling. He’s been driving this bus for a few years now.
“But I believe that sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated,” Silver wrote in a 2014 op-ed to the New York Times.
What was interesting was the fact that Silver didn’t just voice his opinion, but offered ideas on how to regulate this matter going forward.
“In light of these domestic and global trends, the laws on sports betting should be changed. Congress should adopt a federal framework that allows states to authorize betting on professional sports, subject to strict regulatory requirements and technological safeguards,” Silver wrote.
The “domestic and global trends” that Silver referenced related to the fact that gambling is still prominent, despite the fact it’s only technically legal in sportsbooks in Nevada.
There are hosts of online sites where bets can be placed, so what’s the difference if it’s legal in every state?
The lines between sports and gambling have been blurred by the emergence of daily fantasy sports, websites like FanDuel and Draft Kings, which offer contests where players are picked and payouts are made based on performance. Because it’s phrased as a “contest” it’s not gambling.
Draft Kings currently offers contests in 12 categories. MLB, NFL, NBA, and NHL are the obvious. There are even contests for NASCAR, MMA, and eSports. The daily fantasy sports presence is already prominent in the NFL. Draft Kings has a licensing deal with the NFL Players Association, and former Redskins wide receiver Pierre Garcon filed a class action lawsuit against FanDuel that sought payment for unauthorized use of players names and likeness.
I wouldn’t expect this decision to have immediate repercussions but they will certainly come in the future. Leagues are going to have to address the elephant in the room.
Will Tom Brady be betting on the Patriots when he’s still playing quarterback 20 years from now? Probably not. Draft Kings has rules in place that prohibit employees from participating in contests. The obvious guess here is that will remain the same for players, coaches, and anybody associated with an organization.
There will be an obvious domino effect in Massachusetts, where a Wynn casino is expected to open in Everett in 2019. Adding a sportsbook would be a huge get. According to the Boston Globe, the Massachusetts Gaming Commission said in February that, "The report also found that sports betting could generate between $8.6 million and $61.3 million in tax revenue, depending on how widely available the games are made and on the amount of taxes levied."
The history with sports and betting has been ugly in the past. Think Pete Rose and his lifetime ban or the Chicago Black Sox and the 1919 World Series. Most recently, the NBA had its own gambling black eye when referee Tim Donaghy resigned from the league in 2007 before the FBI investigated his involvement for fixing games. And Boston College had its own problems with men's basketball.
The next steps right now are unclear, but the Supreme Court decision will undoubtedly influence what leagues will be thinking about going forward.