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Nevada and New Jersey Warn Federal Government Over Sports Betting Regulations

Home » Nevada and New Jersey Warn Federal Government Over Sports Betting Regulations

Nevada and New Jersey have come out and warned the federal government over federal regulations surrounding sports betting. This warning came ahead of the Congressional hearing on the matter, which is scheduled to take place on Thursday 27 September. Nevada and New Jersey both agreed that federal regulation was unnecessary and unwelcome.


Nevada and New Jersey warn against federal government regulating sports betting

Nevada and New Jersey have both warned against the federal government regulating sports betting. They say it is not needed and definitely not welcome.


Federal Regulation Not Needed

Representatives of the two states warned the federal government that heavy-handed federal regulations of the sports betting market could have devastating consequences. These could include repressing innovation from sports books, reducing competition, and making players go back to unregulated sportsbooks.

As we all know by now, the federal ban on sports betting was lifted in May 2018, when the Supreme Court repealed PASPA. This came after New Jersey was able to get the Supreme Court to hear its case, with the hearing happening in December 2017. When it announced its decision, the Supreme Court stated that Congress could regulate the sports betting market if it wanted to. Otherwise, it would be regulated by the states who legalized the activity.

Integrity Fee Still a Concern

Since the repeal of PASPA, there has been some talk of federal regulations. One of the architects of PASPA, Senator Orrin Hatch, has spoken out about the need for federal oversight on several occasions. However, the hearing on Thursday will be focused on examining whether a basic federal framework is needed to help guide states who decide to allow sports betting.

However, Nevada and New Jersey are still concerned. The worry is that major sports leagues could use their influence to guide federal regulations. The leagues have been trying to get an integrity fee added, which they say will be used to prevent match-fixing. However, because sports betting has very small margins, this would likely make it extremely difficult for sports books to turn any kind of profit.