States must use official league data through at least 2022.<\/li>\n<\/ul>\nThat last point is potentially troublesome. This would essentially create the integrity fee that leagues have sought since the legalization movement began. States would be forced to purchase the official league data for use in their sports betting operations.<\/p>\n
In\u00a0its current form, there is no grandfathering of states\u00a0that have already enacted legalized sports wagering. A stipulation that betting must occur in a casino or licensed facility could be problematic for Delaware. It\u00a0currently generates much of\u00a0its high-margin parlay-card sales through retailers such as bars, restaurants, convenience stores, and barber shops.<\/p>\n
<\/p>\n
Modifies the Wire Act<\/h5>\n
The bill modifies the Kennedy era Wire Act.\u00a0It permits interstate “layoff bets” between sports wagering operators. This is an odd modification since the practice of laying off wagers is rare among operators. Earlier in the bill, it permits interstate wagering between states\u00a0that have consented to a compact. However, the wording of the modification of the Wire Act does not appear to be explicit enough to permit it. It’s likely the contradiction would be resolved in future versions of the bill. The prospect of interstate sports wagering compacts is encouraging.<\/p>\n
<\/p>\n
National Sports Wagering Clearinghouse<\/h5>\n
One of the more interesting sections of the bill is the establishment of a National Sports Wagering Clearinghouse through which all sports wagering transactions will flow. The data will be anonymized, but it sounds like it\u2019ll work much like the ticker on the bottom of a financial-news network. It will have information\u00a0about every wager that takes place. Regulators can use that information to spot anomalies and suspicious activity. The downside to sharp bettors will be that it would also make the sports betting market far more efficient. It\u2019s similar to when the various options-trading markets in the US consolidated to become the Chicago Board Options Exchange (CBOE). This development could result in even more “movement on air”\u00a0via reactions to anonymous data. I\u2019m also not sure bookmakers would want this. There’s an advantage to\u00a0recognizing sharp action and not necessarily reacting immediately to it.<\/p>\n
<\/p>\n
Crackdown on Offshore Wagering<\/h5>\n
The bill provides for steps and measures that can be taken against offshore sports books that\u00a0do business with US residents. It permits the seizing of website domains and also the blocking of website traffic. It also makes the advertisement of illegal sites subject to civil penalty and confiscation. As with previous federal laws, it does not impose a criminal penalty against those who wager offshore. It places the burden on the entity accepting the wager. There are states\u00a0that have laws against placing a wager with an illegal entity.<\/p>\n
<\/p>\n
Direction for the Federal Excise Tax<\/h5>\n
Since 1951, there’s been a federal tax on sports betting handle. It was originally a whopping 10%, but since 1984\u00a0it’s been a manageable 0.25%. With just Nevada contributing, that 0.25% was often overlooked. In fact, it was never earmarked for anything but the General Fund. Now with the US probably approaching $10 billion in annual handle within the next year, that 0.25% adds up to some real money. The bill looks to assign those funds to a Wagering Trust Fund. That fund would facilitate the enforcement of this law — presumably, the fight against offshore sports books. It would also provide funding for the prevention of gambling addiction.<\/p>\n
<\/p>\n
What are the Odds?<\/h5>\n
Considering Senator Hatch was one of the original authors of PASPA, the prospects were dim. Those of us who’ve kept a close eye on the developing world of sports betting legalization still believe letting the states find their way is the best path. Divergent paths will ultimately tell us what works best. That said, the bill has some good ideas in provisions for interstate compacts and direction for the excise tax. Unfortunately, the requirement to buy league data smells of a placation to league lobbying efforts.<\/p>\n
In the end, this is still a bill whose main sponsor is less than a month from retirement. There’s no support for this bill from any committee in either the Senate or House. This is generally not a pressing issue for Congress. With a divided Congress, it’s unlikely that many bills will be passed in the coming year. I don\u2019t believe this\u00a0one has the prospect of becoming law anytime soon.<\/p>\n
However, I\u2019m reminded of 2006\u00a0and\u00a0a similar political landscape.\u00a0 Many of us in the online-gambling industry were confident that a bill from Senator Bill Frist would never make it to a vote. His bill, the Unlawful Internet Gaming Enforcement Act, was ultimately shuffled hundreds of pages deep into an anti-terrorism bill and passed late one night. This bill might sneak by us in much the same fashion someday.<\/p>\n![\"Facebook\"](\"https:\/\/www.lasvegasadvisor.com\/gambling-with-an-edge\/wp-content\/plugins\/social-media-feather\/synved-social\/image\/social\/regular\/96x96\/facebook.png\" "\\"Follow")
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<\/a>","protected":false},"excerpt":{"rendered":"As he promised he would before retiring, Senator Orrin Hatch introduced a new federal sports wagering bill this week. The stated goal of this bill is to regulate and standardize sports wagering among states\u00a0that legalize it. Let\u2019s take a look at what the bill could provide, both good and bad, and then analyze the likelihood […]<\/p>\n","protected":false},"author":26,"featured_media":83676,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[19],"tags":[1906,1903,728,1905,1904,1847,1902,174,223,1822],"yoast_head":"\n
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