While sports gambling is a popular emergency, federal law makes it illegal in 46 states—including Rhode Island. This federal law is known as the Professional and Amateur Sports Protection Act and was passed in 1992, making this year the 25th anniversary of a law that several states are arguing is unconstitutional. If PASPA were repealed, or at the very least amended, Rhode Island sports gambling could expand beyond the offshore sportsbooks Rhode Island residents currently use and could shift to Nevada-style sports betting.
PASPA was passed by President George H. Bush in an effort to stop the rampant spread of legalized sports betting. Bush signed the bill into law, effectively banning sports betting in 46 states. The only four states allowed to have sports betting are Montana, Delaware, Oregon and Nevada. Nevada is the only state that has single-game betting and physical sportsbooks. Las Vegas is considered the center of sports gambling in the United States because it is really the only place where physical sports betting takes place. The other three states offer different of forms of sports betting, like parlay cards or betting pools, for example. In its 25 years, PASPA has gained a few opponents who believe it is time the bill be reexamined for relevance in today’s society. Sports gambling is in demand. This is evidenced through the popularity of both Daily Fantasy Sports (DraftKings, FanDuel, etc.) and the use of offshore sportsbooks in states where PASPA is in effect. Even some of the commissioners from the major professional sports leagues have expressed either support for legalizing sports gambling or at least interest in having a conversation on the issue.
There are some states that have started the process of going against PASPA. Rhode Island isn’t one of these states, but that doesn’t mean they’re not in support of it. New Jersey, Michigan and Maryland are a few examples of states that have expressed a desire to repeal PASPA. One New Jersey Congressman drafted a bill that would give any state a four-year window to figure out a sports gambling system and implement it. The financial benefits of regulating sports gambling could drastically impact a state’s budget. For example, Delaware runs their sports betting through the Lottery, the profits of which going directly back to the state.
Most of the states (outside New Jersey) that have expressed interest in legalizing sports gambling are waiting to see what happens with PASPA. With the inauguration of President Trump, a former casino mogul, some believe that sports betting may finally get a fair shake. Vice President Mike Pence legalized Daily Fantasy Sports in his state as governor, so he’s had some experience with related industries. Trump also has to appoint a new Solicitor General and one of their first tasks will probably be to hear the New Jersey case in the Supreme Court.
Hypothetically, if PASPA were repealed, then Rhode Island could choose to have Nevada-style sports betting, pending the legislation passes and goes through a voter referendum. This would put the decision in Rhode Island residents’ hands. Sports gambling is on the rise, and 2017 could prove to be a pivotal year for the industry. It’ll be up to Rhode Island residents to determine if they want it, but if they choose to do so, it could increase profits for the state and even interest in the sports leagues as well. PASPA has long determined the present stance on Rhode Island sports gambling, but it certainly doesn’t have to affect the future.