Monday, July 19, 2021

Regulating Online Sports Betting

 

Gambling has been illegal in most states for a long time, yet online sports betting is now legal in over twenty-five states in the United States. Legal sports betting is now illegal in some jurisdictions, while many more have either in-person only betting. Thus, we are tracking all fifty states (and Washington D.C.). To get a sense of where things stand in each jurisdiction, we are tabulating all of the current legal restrictions on online gambling at this time.

One jurisdiction that is still very much in play is Alaska. Currently, there is a ban on gaming and the possession of gambling devices within the state. The only way that Alaska will be able to start legally selling online gambling products is if a proposal comes to the state's legislature that contains a provision for a legalized online gambling industry. A similar bill already passed the U.S. House of Representatives, so it may find its way to a state Senate soon.

Four other jurisdictions have legalized online Sports betting, and two of them (Delaware and Nevada) have very loose regulations. Both Delaware and Nevada have said that they expect to have licensed sportsbooks within two years, and if the estimate is close, that may very well be accurate. According to the Las Vegas Review Journal, "licensed bookies will have to register with the state and pass background and certification inspections...The casinos will be the ones who handle those transactions." If you live in one of those states, but you don't have a account set up yet, it's time to get moving. First, check out our site to find a list of available bookmakers.

Two years later, after the first year of legal online sports betting in the United States begins, the spotlight will once again shift to the two pioneers of legalized gambling in the country, New Jersey and Nevada. In January of 2021, the New Jersey Gaming Commission will take its position as the chief regulating body for online gambling in the state. The new position for the NJGC will put it in a position to "limit, restrict, and restrict" the activities of the licensed casinos and online sports betting websites. It will also establish new responsibilities for the commission that will require quarterly reports on the performance of the casinos and online sports betting websites. Although no timetable has been set for such reporting, experts speculate that the process will occur around six months after the new appointments.

In the meantime, the New Jersey Gaming Commission must define the parameters by which licensed online gambling activities will be regulated. If the online sportsbooks and casinos go out of business, the state will not lose its hard-won reputation as an online gambling and gaming mecca. On the other hand, if the online sports betting goes smoothly and successfully and becomes a moneymaker for the state, the NJGC will reap the benefits of having a steady source of income from gaming licenses and ongoing fees paid by the online gambling websites. The commission will continue to generate millions of dollars each year from sales of gambling licenses and the fees paid by these licensees. The future for the online gambling industry in New Jersey looks bright indeed.

The recent developments in New Jersey are encouraging many other states to move forward with their own efforts to regulate online sports betting. As technology advances, the trend is expected to continue in that direction. Some worry though, that if regulation causes a decrease in business for the licensed online gambling establishments, the income generated from in-play gambling will suffer as well. According to the New Jersey Department of Law, the purpose of the law is to ensure "fairness of the gaming system." They also claim that the regulations serve as protection for consumers by ensuring that "these customers are protected against unfair and deceptive practices."

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