US Ruling Opens Way For States-wide Sports Betting
US ruling opens method for states-wide sports betting wagering
14 May 2018
Share
close panel
Share page
Copy link
About sharing
The US Supreme Court has made a landmark ruling that might allow states across the nation to legalise sports betting.
It has actually backed a 2014 state ruling in New Jersey which allows sports betting wagering in gambling establishments and at horse racing tracks.
The court also struck down a 1992 federal law prohibiting sports betting gambling.
The news sent the share costs of sports betting stocks in the US and UK rising, consisting of Hill and Paddy Power.
Several significant US sports betting bodies had opposed the move, including the National Basketball Association.
The National Collegiate Athletic Association stated it was a danger to the “integrity of athletic competitors”.
However, Justice Samuel Alito wrote on behalf of the Supreme Court: “The legalisation of sports betting requires a crucial policy option, but the option is not ours to make.
“Congress can regulate sports betting gambling directly, but if it chooses not to do so, each state is free to act on its own.”
Winners and losers
Shares in UK-based bookies jumped on the ruling. Paddy Power Betfair’s share price rose 10.5%, 888 Holdings leapt 14%, William Hill’s stock got 9.4% and GVC Holdings rallied 6%.
In the US, shares in Churchill Downs, which owns horse race tracks and casinos increased by 5.73%.
But Wynn Resorts, the Nevada-based hotels and casino operator, saw its share rate fall by 2% on the prospect of competition from new entrants to sports betting wagering.
The Supreme Court choice strikes down the Professional and Amateur sports betting Protection Act (PASPA) of 1992 that restricted sports betting wagering in most states.
It is only permitted in just a few states, consisting of Nevada, home to Las Vegas, Delaware, Montana and Oregon.
Neil Wilson, primary market expert at markets.com, said that William Hill stands to gain the most following the ruling since it “can present gambling operations pretty quickly from Nevada, where it currently runs and has extremely strong market existence”.
He added that the business also has a New Jersey operation “that is primed and prepared to start taking bets within days”.
Paddy Power Betfair has an existence in the US through TVG, one of the country’s greatest online horse racing organizations.
Betfair purchased TVG in 2009 for $50m before it went on to combine with Paddy Power.
Paddy Power Betfair likewise operates an online gambling establishment and horse race wagering business in New Jersey.
High stakes for fixed-odds wagering makers
12 May 2018
Slam dunk for US sports betting wagering ban?
Published
4 December 2017