The subcommittee postponed sports betting hearings on June 19 and June 26.
Rep. Jim Sensenbrenner (R-WI) of the U.S. House of Representatives postponed plans to hold a hearing on sports betting. Democrats had requested the hearing late last year, but a discussion of legal sports betting became important when the US Supreme Court struck down the PASPA federal ban on sportsbooks last month.
Jim Sensenbrenner is the chairman of the Subcommittee on Crime, Terrorism, Homeland Security, and Investigations, which itself is a part of the powerful House Judiciary Committee in the House of Representatives. The reason given for the postponement was “scheduling complication in unrelated policy areas”.
The hearing on sports betting was scheduled for June 19 originally, then later was rescheduled for June 26. The hearing was named “Post-PASPA: An Examination of Sports Betting in America“. A full list of those who would be called to the hearing has never been released, though it was reported that a representative for the National Football League (NFL) was invited.
The NFL is one of several US sports leagues which, in the wake of the PASPA ruling, had called for federal regulations on sports betting.
Roger Goodell on US Sports Betting
Following the announcement by the US Supreme Court, NFL Commissioner Roger Goodell released a statement which said, “We are asking Congress to enact uniform standards for states that choose to legalize sports betting.”
The US Supreme Court did not rule out the ability of the US Congress to ban sports betting categorically. In a 6-3 vote, the SCOTUS said that the US Congress cannot pass a law which bans sports betting in some states and allows it in other states, as the PASPA law had done.
Orrin Hatch on Sports Betting Regulations
Instead, the US Congress can either ban sports betting in all 50 states, approve and regulate sportsbooks in all 50 states, or do nothing. US Sen. Orrin Hatch (R-UT) gave a statement after the May 14 Supreme Court decision saying he would prefer to see the Congress regulate sports betting laws in the United States.
Orrin Hatch‘s office released a statement which said, “It will be up to each state to decide whether to legalize sports gambling and how to regulate it. But given that sports betting activity can now be conducted across state lines via the Internet, Senator Hatch believes we need to ensure there are some federal standards in place to ensure that state regulatory frameworks aren’t a race to the bottom.”
1964 Sports Bribery Act
ESPN later reported that Orrin Hatch wants to tweak the 1964 Sports Bribery Act, which would strengthen penalties against those who would try to tamper with sports betting, either through point-shaving or match-fixing. In other words, Senator Hatch wants to pass sports betting regulations, but does not want to ban sportsbooks in the United States.
Nevada, Oregon, Montana, and Delaware fought successfully to maintain their sports betting laws 25 years ago when the PASPA was passed. Those laws were grandfathered in to the PAPSA, which ultimately proved to be the law’s undoing. Given the fact four states fought successfully against a 50-state ban in 1992, it seems unlikely that those states and the 20 states which signed an amicus brief on behalf of New Jersey’s appeal before the Supreme Court would allow a 50-state ban to pass Congress now. Regulations are the only way.
Integrity Fees Unlikely
If the NFL gives testimony, it is unlikely to push for integrity fees. Unlike the NBA, PGA, and Major League Baseball, the NFL has not called for the imposition of integrity fees in any possible federal regulations. The league offices overseeing pro baseball, basketball, and men’s golf each wanted a 1% integrity fee on all sports bets, to pay the leagues for the cost of maintaining integrity in the games they organize.
Land-based sportsbook operators and lawmakers who support the casino industry balked at the suggestion of integrity fees. Some pointed out that the league’s have maintained for decades they do the utmost to maintain integrity, so it should not cost a bit more to maintain standards of integrity in the new circumstances. Former State Sen. Ray Lesniak of New Jersey was blunter, when he said, “We have been very clear: We’re not going to pay one dime of tribute to the leagues.”
Antipathy to US Sports Leagues
Those who oppose integrity fees point out that the NBA and MLB spent the past 6 years suing New Jersey, Monmouth Park Racetrack, and William Hill USA to keep sportsbooks from opening. In doing so, they cost potential American sportsbooks, their associated gaming companies, and US state governments billions of dollars. To now claim they deserve 1% of all US sportsbooks’ business everywhere seems brazen to many in the gaming industry.
If representatives for Major League Baseball or the NBA were called to Jim Sensenbrenner‘s subcommittee, the conversation might change. As a general rule, representatives from both sides of the debate are called. In this case, there might be three sides, as the anti-gambling crowd might want to speak. Having the meeting twice postponed is an indication that the US Congress does not consider sports betting to be a priority.
Crisis on the Judiciary Committee
One reason Rep. Bob Goodlatte and Rep. Jim Sensenbrenner might have postponed the sports gambling hearing is the need to focus on an immigration bill in the wake of the immigrant family separation story which is dominating the news. When one clicked from a story on “Post-PASPA: An Examination of Sports Betting in America” to go to the Judiciary Committee’s official website, the visitor sees a story called “Goodlatte, Curbelo, McCaul, Denham Unveil the Border Security and Immigration Reform Act”.
For the past week, the story of detention along the Texas/Mexico border has consumed the nation’s political class and its media. As the ranking member of the Judiciary Committee, Rep. Bob Goodlatte is required to focus on those issues instead of sports betting. With key votes expected later this week or early next week, Sensenbrenner appears to be focusing on the hot-button issues of the day.
