Casinos in Maryland and other states are seeking a share of a growing sports betting market that remains tantalizingly out of reach — for now — because a federal ban leaves fans to wager billions of dollars with offshore companies instead.
To many casinos outside of Nevada, Sunday’s Super Bowl is an unpleasant reminder that while they lobby for the ban’s repeal online sites in the Caribbean and elsewhere are hauling in vast sums on sports wagers.
Fans can bet on Sunday’s winning team, coin toss and hair color of halftime performer Lady Gaga. Some sites provide a steady stream of odds allowing real-time betting on the outcome of individual plays.
While the novelty bets might seem frivolous — one site asks what color sports drink will douse the winning coach — there is nothing trivial about the amount fans spend on sports wagers, which appeal to America’s fondness for gambling, spectator sports and instant results.
The American Gaming Association, representing the nation’s casino industry, estimates fans will bet $4.7 billion on the Super Bowl between the New England Patriots and Atlanta Falcons — and that 97 percent of the money "will be placed illegally" due to the 1992 congressional ban.
Last week, during the NFC’s Pro Bowl practice, Odell Beckham Jr. snagged a football and bolted for the back of the end zone, unleashing a vicious windmill dunk over the goal post. The crowd roared in approval at Disney’s ESPN Wide World of Sports complex.
It’s what the Pro Bowl is all about. The…
Last week, during the NFC’s Pro Bowl practice, Odell Beckham Jr. snagged a football and bolted for the back of the end zone, unleashing a vicious windmill dunk over the goal post. The crowd roared in approval at Disney’s ESPN Wide World of Sports complex.
It’s what the Pro Bowl is all about. The…
The $4.7 billion doesn’t include the ubiquitous office pools, such as the popular "Super Bowl Squares," in which fans hope the score of the game after each quarter matches their position on a grid. Federal and state authorities generally don’t go after such pools, although some states have made arrests when squares sell for $1,000 or more.
"You have no choice but to take a look at a law that has failed so miserably on its 25th anniversary," said Geoff Freeman, president and CEO of the trade association, whose downtown Washington offices contain a sports ticker with the latest betting lines.
On Thursday, law enforcement officials will unveil piles of counterfeit jerseys, baseball caps, jackets and other sports merchandise seized in the previous year from online vendors, flea markets and stadium parking lots. Operation Team Player, timed for Super Bowl 51 on Sunday, makes for good TV…
On Thursday, law enforcement officials will unveil piles of counterfeit jerseys, baseball caps, jackets and other sports merchandise seized in the previous year from online vendors, flea markets and stadium parking lots. Operation Team Player, timed for Super Bowl 51 on Sunday, makes for good TV…
"We’re going to be outspoken with many allies in really forcing Congress to take a harder look at this. I think things are trending quite well when it comes to regulating sports betting."
Legalization would permit Maryland’s casinos to offer Las Vegas-style "sports book" rooms where clerks accept bets and odds are displayed on oversized, blinking boards. The rooms, with banks of giant television monitors, are popular and sometimes rowdy gathering spots during the Super Bowl and March Madness basketball games.
The owners of the state’s three largest casinos — MGM National Harbor, Maryland Live and Horseshoe Casino Baltimore — say states should have the authority to sanction sports bets.
"Over $100 billion annually is wagered illegally on sports in the U.S.," Caesars Entertainment, owner of Horseshoe Casino Baltimore, said in a statement. The casino accepts bets on horse racing overseen by the state.
"We support legal, regulated sports betting, which today is permitted in different forms in Nevada, Delaware, Oregon and Montana. We are interested in working with the government and private sector to achieve this worthwhile goal."
Nevada and the other three states received full or limited exemptions when Congress approved the 1992 ban because they already offered some form of sports betting.
Nevada remains the nation’s sports betting hub. The beneficiaries have included MGM Resorts, owner of the Bellagio, Aria, and other Las Vegas casinos, which all offer sports betitng.
The company also owns the recently opened MGM National Harbor in Prince George’s County, which is subject to the ban.
"Our company’s longstanding position is that sports betting should be legalized outside of Nevada in those states that choose to offer it, with strong oversight that protects consumers and the integrity of the sports themselves," MGM Resorts said in a statement.
The National Council on Problem Gambling, an advocacy group, isn’t taking a position on whether Congress should revisit sports gambling. But executive director Keith Whyte expressed concern.
"In our experience over the last 40-plus years, it’s been rare that a state government puts significant money to prevent and treat addiction in places where they expand gambling," Whyte said. "Why should we trust that they’re going to do it for sports betting?"
Federal lawmakers have said that Internet gambling remains vulnerable to corruption. Most online gambling transactions are barred under the Unlawful Internet Gambling Enforcement Act of 2006.
The American Gaming Association says it’s not focused on online sports betting.
"My position is we’ll cross that bridge when we come to it," Freeman said.
Among the online sports sites operating now is Bovada.lv. Pat Morrow, its head oddsmaker, declined to say in an interview how much was received on last year’s Super Bowl.
"Year-to-year growth is always increasing. That appears to be the trending case this year, too," said Morrow, who said he is based in Antigua.
Sports betting proponents say legalization at brick-and-mortar establishments would allow American bettors to deal with known, regulated establishments.
"I think it should be a state issue and not a federal issue," said Rep. C.A. Dutch Ruppersberger, a Baltimore County Democrat. "I think each state should have the opportunity to look at this from a legal point of view and have a debate about it."
David Cordish, whose Baltimore-based Cordish Cos. owens Maryland Live, said state regulation would ensure "that the bettors are getting a fair shake."
"It will be a new source of taxing revenue for the state," he said. "And while it will not be a big revenue producer for the casinos, it will be additive to the mix of people visiting and utilizing the casinos."
With the opening of the $1.4 billion MGM National Harbor casino and resort to capacity crowds, Maryland casinos generated a record $133.5 million in revenue during December.
No estimates were available on how much sports betting could add to the bottom line.
"It isn’t a huge money maker compared to a lot of other casino-style games," Freeman said. "But it is a great draw."
Freeman said the evolution of sports betting into real-time wagers could increase its appeal.
"There’s going to be a time where I’ll be watching a [Washington] Nats game and you’ll be watching an Orioles game," he said. "There’s going to be a runner on first. You’re going to be betting on whether the next pitch is a ball or strike and you’re going to put a side bet on a double play."
Sports gambling advocates are monitoring a case in which the Supreme Court last month asked the Trump administration for a brief in New Jersey’s bid for legalized sports wagering.
New Jersey has argued that the federal ban usurps states’ rights. While the high court has not agreed to hear the case, its request to the incoming administration has kept the state’s hopes alive.
The trade association said it has not yet proposed legislation repealing the ban. Analysts say the odds may be tilting in the casinos’ favor as more establishments open around the country and gambling becomes more mainstream.
President Donald Trump, a former casino mogul, was asked by radio show host Colin Cowherd in 2015 about sports gambling and daily fantasy sports.
"I’m OK with it because it’s happening anyway," Trump said. The White House did not respond to a request for comment.
"The number one agenda item for this new administration is ‘Make America great’ and create jobs," said Daniel Wallach, a sports and gaming attorney with the Florida firm of Becker & Poliakoff. "Sports betting can be sold as part of a job creation package."
The NFL, which has long said that legalized gambling could damage the sport, remains opposed, spokesman Brian McCarthy said.
But NBA Commissioner Adam Silver said in 2014 that Congress should legalize and regulate betting on professional sports.
"I think the people dragging their feet have been the sports leagues," said University of Maryland associate professor Stephen McDaniel," a sports and entertainment marketing expert teaching a course about gambling.
"The NBA is our most international sport. It has an international following and I think they know this is going on in the rest of the world," McDaniel said.
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