How the Repeal of the Federal Sports Betting Law Changes the Way You Can Make Bets

Sports betting has been illegal in the United States since 1992 when the Professional and Amateur Sports Protection Act (PASPA) was signed into effect.

Only four states were grandfathered into the law, including Delaware, Montana, Nevada, and Oregon. And Nevada is the only one that has offered full-blown sports betting through land-based sportsbooks.

But New Jersey has been fighting against PASPA, taking their case to the Supreme Court to repeal the 26-year-old law. Justices overruled a Third Circuit Court of Appeals ruling by a 6-3 vote, thus repealing the federal ban.

The Supreme Court noted that PASPA violates the 10th Amendment, which pertains to states’ rights.

What does the repeal of PASPA mean for American sports bettors? How will you be able to make legal bets now?

I’ll answer these questions by covering how Americans currently bet, why PASPA was repealed, and what you can expect in the future with legal sports gambling.

Is Sports Betting Now Legal Across The US?
No, the Supreme Court’s decision doesn’t make sports betting legal on a federal level. Instead, it merely lifts the federal ban and opens the door for legalized sports gambling on a state level.

The justices believe that Congress has the option to decide what to do with sports betting. But they were against PASPA, because it forced states to ban the activity.

“Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own,” Justice Samuel A. Alito Jr wrote regarding the majority decision.

“Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not.”

This is similar to how the Trump administration can order federal immigration officers to arrest illegal immigrants. But they can’t force an individual state like Arizona or New Mexico to arrest the immigrants.

The justices are giving Congress the option to deal with sports betting how they see fit. The House and Senate can ban the activity, regulate it, or ignore sports betting and let individual states decide.

How Americans Currently Place Sports Bets
The American government and professional sports leagues have feared sports gambling ever since the 1919 Chicago Black Sox scandal. This incident saw eight Black Sox players throw the 1919 World Series for gambling purposes.

It’s understandable why pro sports leagues have fought to keep the activity illegal. This is especially the case when considering that there have been smaller point-shaving scandals ever since 1919.

But keeping American companies from offering sports betting hasn’t halted the activity. Instead, a thriving offshore market has been operating in the US for over two decades.

Offshore sportsbooks started out by taking wagers via phone. When consumer internet became popular in the mid and late-1990s, the sportsbooks began accepting bets online.

The offshore sports wagering industry has grown due to increased comfort with bookmakers and mobile compatibility. Many online sportsbooks work to establish trust with customers by making timely payments and offering good customer support.

Even with the Supreme Court repealing PASPA, offshore sportsbooks haven’t missed a beat. They’re still offering sports betting to 40+ states, minus those that have explicitly banned online gambling or acted against offshore operators.

Americans from over 40 states can google online sports betting and quickly find an offshore book. From here, you can make a deposit with options like Bitcoin, Visa, or MasterCard.

In 2011, the US Department of Justice (DoJ) issued an opinion that the Interstate Wire Act of 1961 only applies to sports betting. The Wire Act makes it illegal to offer sports wagering across state lines.

This seemingly makes unregulated online sports betting illegal. Internet sportsbooks are basically violating federal law because the online version isn’t legal anywhere in the US.

But the federal government has chosen to ignore the industry for over two decades. And only a handful of states have strict laws against internet gambling.

We can expect the offshore betting industry to continue until either Congress and/or states begin taking serious steps to regulate the activity.

What States Will Legalize Sports Betting In The Near Future?
Given that New Jersey spearheaded the effort to repeal PASPA, it’s no surprise that they’reacting quickly to legalize the activity. In fact, former Gov. Chris Christie had already signed a sports betting bill before the pro sports leagues and NCAA sued him.

West Virginia is another state that passed sports betting legislation in anticipation of the Supreme Court decision. The main question is which states beyond West Virginia and New Jersey are going to move on sports gambling.

Maryland’s sports gambling bill passed the House but not the Senate. This legislation called for a November referendum that would allow voters to decide on the matter.

Other states that are serious about sports gambling include Connecticut, Delaware, Illinois, Massachusetts, and Rhode Island. They could all legalize sports betting within the next year.

Of course, Congress could place a federal ban on sports wagering in the future. But there are currently no plans for congressmen to discuss the matter any time soon.

Additionally, nobody expects Congress to take harsh action with little incentive to do so.

A number of other states will be interested in passing sports betting bills. Research from Eilers & Krejcik Gaming estimates that 32 states could legalize the activity within the next five years.

It’s impossible to put an accurate number on how many states will allow sports betting this early on. But I believe that it’ll be at least two dozen in less than a decade.

What Sports Will And Won’t Be Available For Betting?
The Supreme Court’s decision paves the way for every betting option that Nevada sportsbooks currently offer. This includes professional and college sports, boxing, golf, horse racing, mixed martial arts, and international sporting events.

Standard types of bets offered with these sports point spreads, moneylines, totals (over/under), parlays, and teasers.

The main question lies in whether live betting and prop bets will be allowed. Certain sports leagues have asked states not to offer these options.

Live wagering allows bettors to gamble on outcomes during the game. For example, an NFL live bet might ask: “which team will score the next touchdown?”

Prop betting is based on individual propositions before the game begins. An example is: “which [basketball] player will make the first three-pointer?”

Even if some states oblige these requests, many bettors will be happy with the standard bets. After all, Nevada is currently the only state that can offer traditional betting.

Delaware and Oregon have sports lottery products, which basically amount to 3-team parlays. But both states eventually dropped their sports lottery offerings after legal threats from pro sports leagues and the NCAA.

When Will Online And Mobile Sports Betting Be Available?
The Supreme Court’s opinion doesn’t make a distinction between online and land-based sports betting. But it’s largely predicted that states will only offer land-based sports gambling in the immediate future.

Some states are already including mobile and online sports betting in legislation. New Jersey sportsbooks are planning to take bets online and through the phone.

But due to the Wire Act, states will only be able to offer internet sports betting within state lines. Something will have to change with regard to the Wire Act before this happens.

States have argued that without online sports gambling, they’ll continue losing money to offshore bookmakers. But don’t expect anything to happen on this front for at least 3-4 years.

Expect Daily Fantasy Sports Sites To Join The Sports Betting Party
Leading daily fantasy sports (DFS) sites DraftKings and FanDuel have advocated for sports betting. This makes it a guarantee that they’ll jump into the mix with their own sportsbooks.

The advantages for DraftKings and FanDuel are that they already have the infrastructure, customer bases, and brand recognition in place. They just need to partner with an existing casino within each state to participate.

Both companies are working with state gaming agencies to apply for licensing wherever legislation calls for online sports betting.

I mentioned how the Wire Act will prevent states from offering sports betting to other states. But DraftKings and FanDuel will be able to offer intrastate online sports wagering.

How Will Professional Sports Leagues Be Impacted by Legal Betting?
The NHL, MLB, NBA, NFL, and NCAA teamed up to sue New Jersey and stop them from offering legal sports betting. But the NHL, MLB, and NBA have since softened their stance.

All three leagues indicated that they knew sports wagering would be legal at some point. Their main issue is ensuring that the laws protect sports integrity and that the leagues receive some of the revenue.

The revenue would compensate leagues for additional costs arising from sports wagering, including education, investigations, and monitoring. But if the deal is favorable enough, they could end up with big profits too.

Studies have shown that sports gamblers watch NFL games about 20 times more than non-gamblers. An increased number of people gambling on sports bodes well for the leagues.

Dallas Mavericks owner Mark Cuban noted how the decision figures to increase the value of sports franchises.

“I think everyone who owns a top four professional sports team just basically saw the value of their team double,” said Cuban. “It can finally become fun to go to a baseball game again.”

John S. Clark, a professor of sport management at Robert Morris University, noted that sports betting will bring some black-market betting to the forefront.

“I don’t know if it necessarily means it will create more gamblers,” said Clark. “but it brings some of that money that’s underground to a legitimate, taxable place. It could be a boon for the states.”

A Lot Must Be Worked Out With Legal Sports Betting
Pro sports leagues and the NCAA still hold some sway in this matter. And it could create conflict as states look to iron out the basics of regulated markets.

A big issue is a matter of how much compensation leagues will receive. NBA Commissioner Adam Silver wants to collect 1% of total wagers as an “integrity fee” for his league alone.

This money would help cover the NBA’s six-year, $250-million deal with sports analytics companies Second Spectrum and Sportradar to monitor stats and watch for potential point shaving.

But American Gaming Association president Geoff Freeman explains that 1% is too much for sportsbooks, which only collect a small amount of “juice” from the losing side.

“A legal sports book realizes 3.5 to 5 percent in revenue,” said Freeman. “A 1 percent ‘integrity fee’ on all money wagered legally by Americans, as proposed by the NBA, amounts to 20 to 29 percent of total revenue.”

Freeman added that each league requiring such fees would eventually make it unprofitable for anybody to run a sportsbook.

Taxes are another concern. Pennsylvania’s legislation proposes that sportsbooks pay a 36% tax on profits, which would be the highest in the country.

The high rate would likely be passed on to the consumer. If the juice is too high at legal sportsbooks, then bettors will stay with online offshore bookmakers until things change.

Conclusion
The Supreme Court’s repeal of PASPA is a step in the right direction for bettors. This decision indicates the court’s belief that states shouldn’t be told how to act regarding sports gambling.

Instead, Congress needs to make a clear distinction on the matter. And they’re unlikely to ban the activity outright with several states moving forward.

New Jersey, West Virginia, and a few other places will already be offering sports betting by the time Congress acts. Therefore, congressmen are likely to impose light framework, rather than ban or legalize sports betting on a federal level.

The big concern I have is that the sports leagues have too much pull in the matter. Furthermore, the proposed fees reduce potential profits for sportsbooks.

It makes sense why the leagues would want additional compensation for having to monitor potential match-fixing. But 1% of total wagers for one league (NBA) is simply not happening.

Consider that Nevada alone accepted $4.87 billion worth of bets in 2017. This means that the NBA would receive $48.7 million of the total handle from one state.

If all five major sports entities demand 1%, then the sportsbooks would lose money just by operating. Therefore, a more-sensible resolution needs to be worked out.

Regarding the market’s timeframe, a few states could be up and running within a year. New Jersey and West Virginia have already passed legislation and are moving forward with PASPA dissolving.

But it’ll probably be 3-5 years before we see a sizable number of states with legal sports betting.

2018 NBA Finals Preview

Although both teams took unconventional roads to get here, we ended up getting the NBA Finals we were expecting all along. The Golden State Warriors and Cleveland Cavaliers will lock horns for Association supremacy for an unprecedented fourth straight time after each overcame 3-2 deficits in their respective conference finals.

For the Warriors, it’s a chance to cement their place in NBA history as a legitimate dynasty (three titles in four years would look a lot better than two in four). Meanwhile, a Cleveland victory could move LeBron James past Michael Jordan in the minds of many when it comes to the ongoing debate of who is the greatest player in NBA history.

Golden State won both regular-season meetings this year, posting a seven-point win at home on Christmas Day and then beating the Cavs by 10 on Martin Luther King Jr. Day in Cleveland. But the Cavaliers blew up their roster with a series of trades just a few weeks later, and this will be a much different-looking Cleveland squad that takes the court when the Finals tip off Thursday in Oakland.

Let’s look at the betting odds for this series, then break down the matchup to see where the best betting value lies.

All odds that are referenced in this article were taken from BetOnline.ag at 10 a.m eastern on May 30, 2018. These odds may have changed since the time of this writing.

2018 NBA Finals Odds
This series looks incredibly lopsided on paper, and the oddsmakers agree. BetOnline lists Golden State as a -960 favorite to win the best-of-seven Finals, which implies the Warriors have more than a 90% probability of hoisting the Larry O’Brien Championship Trophy for the third time in four years.

NBA Finals Series Odds
Cleveland Cavaliers: +710
Golden State Warriors: -960
On the other hand, there’s a ton of value on the Cavaliers, whose +710 potential takeback is the highest of any team LeBron James has taken to the finals. It doesn’t take Lloyd Christmas to realize that if you’ve got The King, you’ve got a chance, and LeBron already took down this Warriors dynasty a couple of years ago.

That said, asking James to do the same this year is a very tall order. He no longer has Kyrie Irving at his side, Kevin Love’s availability is cloudy (more on that later), and the rest of his supporting cast has been spotty at best.

Fortunately, there are many other ways to bet on the NBA Finals series without laying 10 to win 1 on the Warriors or taking the Cavs on a wing and a prayer. Here are some of the NBA Finals series props currently available at BetOnline:

Cavaliers Series Handicap
Cleveland +1 Games: +600
Cleveland +1.5 Games: +400
Cleveland +2 Games: +340
Cleveland +2.5 Games: +210
Cleveland +3 Games: +100
Warriors Series Handicap
Golden State -1 Games: -800
Golden State -1.5 Games: -550
Golden State -2 Games: -425
Golden State -2.5 Games: -250
Golden State -3 Games: -120
Series Game Total
Over 4.5 Games -220/Under 4.5 Games +180
Over 5 Games +125/Under 5 Games -145
Over 5.5 Games +170/Under 5.5 Games -210
Over 6 Games +400/Under 6 Games -500
Over 6.5 Games +550/Under 6.5 Games -700
Series Exact Outcome
Cleveland in 4 Games: +15000
Cleveland in 5 Games: +5000
Cleveland in 6 Games: +1400
Cleveland in 7 Games: +1600
Golden State in 4 Games: +175
Golden State in 5 Games: +150
Golden State in 6 Games: +500
Golden State in 7 Games: +700
When Will Series Finish
Game 4: +175
Game 5: +150
Game 6: +425
Game 7: +525
Where Will Series Finish
At Cleveland (Game 4 or 5): -130
At Golden State (Game 6 or 7): +110
NBA Finals Individual Game Odds
It’s also going to be difficult to find value on the Warriors in individual games, judging by the point spread for Game 1. Golden State is a 12.5-point favorite to crush the Cavaliers Thursday in Oakland, marking the largest point spread in an NBA Finals opener since Allen Iverson singlehandedly carried the undermanned Sixers to the 2001 Finals versus the powerful Lakers. (Philadelphia pulled off the outright upset in Game 1, by the way, before losing the next four games in the series.)

The best times to back Golden State in individual games should be in Cleveland, where the point spreads will be much lower to account for the Cavaliers’ home court advantage. With home floor worth approximately 3 points on the NBA point spread, that means we should see the Warriors favored by 6-7 points in games played in Ohio. Conversely, the Cavs will have their most betting value when playing in Golden State, where they might backdoor a point spread or two with a meaningless bucket in the final minute of a blowout.

Five Things To Watch For In The NBA Finals
Golden State’s Dominance In Third Quarters
The third quarter has been Golden State’s best frame all season, and that trend has continued into the postseason. The Warriors have outscored opponents by 130 points in the third quarter during these playoffs, and by just 20 points in the other three quarters combined. Steve Kerr is obviously making some effective adjustments during halftime, and Golden State has also had to play with some urgency in third quarters after sleepwalking its way through the opening half of several games in these playoffs.

With Cleveland shooting less than 35% from the field during third quarters of this postseason, it’s a great recipe for a Warriors live bet once the third quarter begins. However, Golden State’s dominance of the third frame is hardly a secret, especially after the Dubs outscored Houston by 35 points in the third quarter of the last two games in the Western final. With the oddsmakers likely to adjust for this trend, it could be hard to find betting value.

Injuries
Both teams come into this series with concerns about the health of important players. Cleveland had to play Game 7 of the Eastern final without five-time All-Star Kevin Love (concussion), while the Warriors were without Andre Iguodala (leg contusion) for the final four games of their series against Houston.

Iguodala can be a bit of a forgotten man on a Golden State roster that is loaded with so much talent but don’t forget that he was the NBA Finals MVP against Cleveland just four years ago. Although the Warriors can also choose to guard LeBron James with Draymond Green or even Kevin Durant, Iguodala would be their ideal choice to try to contain The King, and his return would be huge for a Golden State team that struggled without him in the Western final.

But while the Warriors can still win this series without a healthy Iguodala, the same can’t be said of the Cavaliers if Love isn’t a big contributor. Other than James, he’s the only Cleveland player who is averaging double-digit point totals in the playoffs, and his ability to score in the paint would allow the Cavs to exploit Golden State’s biggest weakness defensively.

Cleveland’s Three-Point Shooting
With how prolifically the Warriors can shoot the three-ball, opponents don’t stand a chance unless they can hit the 3 themselves. Cleveland’s ability (or inability) to stroke it from beyond the arc will go a long way towards determining if the Cavaliers can even keep things close in the NBA Finals.

Judging by the playoffs so far, things don’t look good for the Cavs. Although they were a strong three-point shooting team during the regular season (37.2%), they’ve hit just 33.9% of their treys in the first three rounds. And while it’s true that Kyle Korver and J.R. Smith can get hot at any time, they’re now facing a Golden State squad that has clamped down on opposing three-point shooters in the playoffs, allowing a league-low 31.9% from distance.

Who Will Stop Durant? Or Curry? Or Thompson?
In last year’s Finals, the Cavaliers simply didn’t have an answer defensively for Durant. KD went off for 35.2 points per game in Golden State’s 5-game victory, shooting a blistering 55.6% from the field on his way to MVP honors. And even if the Cavs put their best defensive player (LeBron) on Durant, it just opens the floor for Steph Curry and Klay Thompson instead.

The scary thing for the Cavs is that last year’s team was a lot better defensively than this season’s outfit. Cleveland was second-last in the NBA in defensive rating during the regular season, allowing a dreadful 109.9 points per game. The Cavaliers’ defense has been improved in the playoffs, but don’t forget that they’ve only had to face Indiana, the perennial playoff choke-artist Raptors, and the defensive-minded Celtics. It’s quite possible, and even likely, that Cleveland’s defense gets exposed in a big way in this series.

Does LeBron Have Anything Left In The Tank?
The King has been absolutely incredible in these playoffs, averaging 34 points, 9.2 rebounds, and 8.8 assists through the first three rounds. But as dangerous as it is to ever question the abilities of LeBron, we also can’t ignore the possibility that he may finally hit the wall in this series.

Over the final two games of the Eastern Conference Finals, LeBron was on the floor for 94 of a possible 96 minutes. He’s averaged 41.3 minutes of court time per game in these playoffs (3.5 more than Durant and nearly six more than Curry), and that’s after leading the entire NBA in minutes played during the regular season.

A four-day break between the Eastern finals and Thursday’s opener may help him catch his breath, but he’s still 33 years old and Game 1 of the NBA Finals will be his 101st game of the season. Factor in how much weight he has to carry for the Cavaliers every night and fatigue could finally take its toll.

Casino Gambling Laws

The biggest problem with developing a page for a web site that deals with casino gambling laws is that almost as soon as you put it up some of the information has changed. There are literally thousands of jurisdictions around the world and they each have their own rules, laws and regulations about online casinos.

Some countries have specific laws regulating the running and licensing of online gambling establishments, some countries have specific laws against online gambling and some countries don’t have any laws about online casinos at all. In addition, if you just included a few lines about each jurisdiction in the world you would end up with a page that was miles long.

There are often many different jurisdictions within each country that may have their own set of laws. The United States is a perfect example of this with laws on the federal level, state level, city level and county level. Sometimes you need a law degree just to figure out who has the authority to do what in any given situation.

Because of the ever changing legal landscape and different jurisdictions I have included many tips, tricks and methods for finding out what the casino gambling laws are where you live or where you are planning to visit.

Gambling Law Disclaimer
Before continuing you need to understand that I am not offering legal advice and you are responsible for determining if any actions you take online are legal where you live. This page is simply for educational purposes and to help you find the answers you need.

The Best Advice about Casino Gambling Laws
By far the best place to learn more about casino gambling laws is to speak with an attorney who specializes in online gambling laws. There are not many of these types of lawyers around, but they do exist.

If you want to be 100% sure you are receiving the best advice possible this is your only option. Plan to spend a fair amount of money, because these lawyers are in demand and they charge for their services.

Learn About Casino Gambling Laws Cheaply
This is the way most players and potential players approach online casino gambling laws. They may do a quick search online, but for the most part if they can make a deposit and play at an online casino they assume it is legal. Searching on the Internet for questions concerning the law and legal advice can be dangerous.

You need to realize that just about anyone with Internet access and a few dollars can launch a web site that says anything they want, whether true or not. In addition, just because you find multiple sources reporting the same things as fact you can’t be sure they are true.

Often a site will make a statement of fact and other sites will start saying the same things and presenting them as factual without verifying them. Remember the old saying that says you often get what you pay for. By reading free advice you may be setting yourself up for an unpleasant experience.

If you must research gambling and casino laws using the Internet make sure to verify any information you find with reputable sources.

Just as a word of caution, Wikipedia is not a trusted or reputable source. It often does have good information, but just about anyone can edit there so many times the details can be incorrect. You can often find solid sources referenced at the bottom of the page in Wikipedia, so if you must use it at least follow the links to find credible resources.

Is Anyone in Jail for Gambling?
This is the test I often use to help me determine if it is legal in a certain jurisdiction to gamble online. I try to find out if anyone has ever been sentenced to jail for doing what I want to do. For example, if I want to play at an online casino I see if anyone where I live has ever went to jail for doing so.

While this is far from a solid defense if you ever get charged, it does make me feel better if no one has done jail time. In other words, you can’t say “Well no one else got in trouble for doing it so I should be allowed to do it” as a defense in a court of law. (I guess you can say it, but if you broke the law it will not help you get the charges dropped.)

You can even take this a small step further to see if anyone has even been charged with a crime for playing at an online casino.

Can You Trust Advice on Online Forums?
While it’s dangerous to say anything is 100% certain one way or another when it comes to sharing information online, I can say that most advice that you find on online forums is suspect at best, and much of it is just plain wrong.

Do not ever base your safety and protection from possibly breaking the law based on anything you read on an online forum or message board. Anyone with Internet access can post on most forums and act like they are an expert.

Don’t fall into the trap of thinking just because someone has a bunch of posts they know what they are talking about either. I have seen people with thousands of posts tossing around completely inaccurate information. I don’t know if all of these people are bad or intentionally trying to spread bad information, but some of it is close to criminal and can cost people money and / or get them hurt. Just like anything else you find online, make sure you verify the important details.

Is Any Place Safe to Gamble?
I realize that so far I have painted a discouraging picture about online gambling and the law. The good news is there are plenty of jurisdictions that have specific laws in place to make online gambling and casino play legal for companies that operate with the correct licenses and for players.

This information can often be found on the government owned web sites in your country. Local attorneys are also likely to have this information if you live in one of the countries that have specific laws allowing online casino play.

However, don’t make the mistake of thinking online gambling is legal just because you have land based casinos in your country. Often the biggest opponents of online gaming are the land based casinos. There should either be specific laws allowing online gambling in your jurisdiction or at the very least no laws that prohibit it.

There are often different laws concerning owning an online casino and playing at an online casino. In many jurisdictions you can play legally but you can’t own an online gambling establishment. There are even a few places where you can own one but citizens are not allowed to play in one.

How Do Banks Factor Into Gambling Laws?
The online casino and gambling industry is fueled by the movement of money into and out of the online casinos and other gambling businesses. Without a safe and secure way to move the money around the online gambling business would quickly go away. So in some jurisdictions the law makers try to either control online gambling through banking laws or try to do away with online gambling by making banking with online casinos illegal.

The UIGEA passed in the United States is an example of this. It doesn’t make gambling online illegal, but it tries to target the banking industry to get them to stop dealing with online casinos. But it hasn’t been very successful at driving the online casinos out of the market. There are still plenty of places for United States citizens to play at online casinos, poker rooms and sports books.

Getting money into and out of these establishments may be a little more challenging than it used to be but it is still fairly easily accomplished. There were many e-wallets, casinos, sports books and poker rooms that left the US market, but just as many stayed or entered the market after the UIGEA.

I Want to Start an Online Casino
If you want to start an online casino then the only advice you need from this entire page is to seek the help of a qualified attorney. There are jurisdictions where you can do this in a legal and safe manner, but there are also places where you will go to jail for running one.

In addition, once you find a legal jurisdiction you will need to find reliable banking solutions, a solid software provider and possibly a local person who you can trust to help you set everything up without being taken advantage of. You may also need to move to whatever country you plan to run your online casino from so you can watch over the day to day operations.

Conclusion
With all of the different laws around the world governing gambling and with the possibility of many of them changing at any time, it can be quite a challenge to know what is right and wrong. In addition, the existing laws in many places are not well worded or thought out and create more questions than answers.

Other places have laws that were put into place well before the Internet even existed and people are trying to determine how these laws fit with the online world. The only thing you can do is find a group of trusted sources to keep up to date and / or use the services of an attorney.