Federal Sports Betting Bill Talks Gain Momentum With Senator Mitt Romney's Participation

According to a member of Mitt Romney’s staff, former presidential candidate and US Senator is partaking in talks regarding federal sports gambling bill. Alongside New York’s Senator, Chuck Schumer, he is working on a piece of legislation that would resemble Sports Wagering Market Integrity Act.

Former Utah Senator, Orrin Hatch, was co-sponsoring this bill, which was introduced in December 2018, and he was replaced in the Senate by Romney. The bill was not assigned to a committee.

The Purpose of the Bill

The S.3793 from 2018…

…aimed to enforce a prohibition of sports wagering but did allow individual states to send their applications to Department of Justice for development of their own regulatory framework. In order to be allowed to do so, each state needs to comply with a set of standards.

The so called integrity fees to be paid to professional sports leagues was not something that was proposed by the S.3793. However, it mandates the use of official sports data for purposes of wagering.

The bill also proposes the establishment of the central sports integrity monitoring organization called The National Sports Wagering Clearinghouse. This body would be funded by the 0.25% tax on sports betting handle.

Not Ruled Out

Under S.3793…

…US states would be allowed to legalize and regulate online and in-play wagering. Betting on amateur sports would not be allowed, as would Olympic Games, Paralympic Games, Pan-American Games and intercollegiate sports.

National Collegiate Athletics Association (NCAA) s this federal bill. Certain US states have already made sports betting legal in their jurisdictions so it’s not quite clear whether the timing is right for a federal bill and whether it can have any point at this time.

Still, when Supreme Court decided to strike down PASPA in May 2018, it said that it would not be unconstitutional for sports betting to be governed by a federal law.

The Controversial Wire Act

This year’s early stages were marked by the clash of American Gaming Association and Department of Justice over the so-called Wire Act…

…as DoJ changed its stance over the 2011 Act, saying it should extend to all gambling facets in the US.

However, AGA’s senior vice-president of public affairs, Sara Sloan, remarked that “the 2018 OLC opinion does not impact the ability for states and tribes to legalise and regulate gaming on a state-by-state and tribal basis, or for companies to provide the exciting products and entertainment experiences our customers want.” She added that DoJ’s change of stance from this practice is “unfortunate.”

She claims that gambling industry is one of the most regulated in the US with over 4,000 regulators and billions of dollars allocated to sector compliance.

“We will work with all stakeholders to preserve the ability of states and tribes to regulate gaming, and we encourage [the] DOJ to investigate and shut down illegal, unregulated gambling operators who prey on consumers.”

Source:

“Romney in discussions for federal sports betting bill”, igbnorthamerica.com, September 12, 2019.