The first paragraph of a letter written by American Gaming Association (AGA) clearly states that no engagement on the federal level is currently needed for the sports betting industry.
The letter was written in response to discussions surrounding the creation of sports betting regulations at the federal level.
The AGA has been working with stakeholders and other entities to improve the legislative process while sports betting expands in the United States.
Democratic Senator Chuck Schumer has called for oversight at the federal level that would require bookmakers to use a sports league’s official data and allow those leagues to have a say about what kinds of bets would be allowed to be placed.
Schumer let his position be known in a memo that was released to ESPN on August 29. Schumer’s plan would include implementing an “integrity fee” which would be a benefit to sports leagues. Stakeholders strongly disagree and would prefer to work with individual states that legalize sports betting. As it stands, no state where sports betting is legal has any requirement to pay fees to sporting leagues.
AGA Strongly Disagrees
Sara Slane who is the senior vice president of public affairs for the AGA reaffirmed their position with respect to federal framework and insisted that the AGA is committed to its fight against illegal sports betting. Slane said that the first step in the fight against illegal sports betting happened when the Supreme Court struck down PASPA. She explained that by having sports betting become a part of a transparent and legal market means that consumers are better protected.
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The letter went on to describe how legal sports betting that is regulated at the state level can prevent black market sports betting, create employment opportunities, preserve integrity and nullify any chances of legislative favouritism. This letter was written just a short time after a Nielson study found that the NFL could increase their revenue by $2.3 billion when the U.S. establishes a regulated and legal sports betting market.
Slane also pointed out that replacing a proven system with a “non-existent and untested” federal system would go against the wishes of the 70% of Americans who believe such things should be left in the hands of individual states and tribes.
There are currently more than 10 states who are discussing the possibility of legalizing sports betting and these include New York, Michigan and Illinois.