MLS releases statement on SCOTUS ruling
Photo credit: Phil Roeder
On Monday, the Supreme Court of the United States ruled the Professional and Amateur Sports Protection Act (PASPA), a federal law prohibiting sports betting outside of Nevada, unconstitutional via a 6-3 decision. Both the short- and long-term ramifications are immense, as the matter now becomes a states’ rights issue.
Sports betting has long been kept in the shadows outside of Nevada thanks to the antiquated and impractical piece of legislation that was signed into law in late 1992 by then-President George H. W. Bush. PASPA, also known as the Bradley Act, was officially implemented in January 1993.
MLS released a statement Monday evening following the ruling:
“Although Major League Soccer is supportive of today’s Supreme Court decision, we also believe that it is critical that state legislatures and other regulatory bodies work closely with the professional sports leagues in the United States to develop a regulatory framework to protect the integrity of each of our respective sports. We look forward to being a part of that process.”
Despite having to operate as a black market of sorts in 49 of 50 U.S. states, the size of the sports betting market is staggering. Of the estimated $150 billion wagered annually on sports in the U.S., 97 percent of the action was placed illegally per the American Gaming Association. As an official partner of DraftKings, MLS appears keen to the possibilities created by opening its arms to the gaming industry.
“The increasingly popular daily fantasy sports space is a proven fan development tool that we’re excited about,” said MLS Business Ventures president and managing director Gary Stevenson when the MLS-DraftKings partnership was announced in July 2015. “You’ll see deep integration within our many digital platforms and you’ll see a number of club deals. We are delighted to partner with DraftKings to give our passionate fans another innovative way to experience the sport that they love.”
Of all the commissioners of major American sports, NBA commissioner Adam Silver has been the most outspoken proponent of legalized sports gambling — with an end game of demanding a cut, of course. Other leagues and institutions might eventually jump on board with Silver’s plan for an “integrity fee,” which would be a 1 percent rake taken from all NBA action imposed on sports gambling establishments.
That’s a battle perhaps not worth fighting, as bookmakers in Nevada and other parts of the world have been accepting billions in bets over the years with no such fees paid back to leagues. The smarter approach might simply be to lease space within sports venues for bookmakers to set up betting windows or electronic betting interfaces, similar to a standard sports book in Vegas or The M Resort in Henderson, Nev. Maybe an “integrity fee” could exist only on action placed on that sport at betting vendors within that particular leagues’ venues.
Beyond that, the real financial benefit of the SCOTUS ruling to sports organizations will come from the huge boost in advertising revenue. According to VSiN founder and chairman Brian Musberger, ad revenue from bookmakers figures to blow away even that of the heyday of daily fantasy sports (DFS) circa 2015.
“The amount of money spent on advertising in the next few years will make the DraftKings and FanDuel advertising spending of two or three years ago look like child’s play,” he told Bleacher Report.
As for MLS, the league will be much better off embracing the ruling — and sports betting as a whole — rather than resisting it. It’s an opportunity for increased revenue and exposure, and presents no real downside other than the overblown fear of match fixing or a perceived moral dilemma.
Follow Kevin on Twitter: @KJboxing.
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