The reversal of PAPSA, the federal ban on sports betting enacted in 1992, marks a new era in American sports culture. What legal sports betting will ultimately look like is up for debate by lawmakers, and it does not appear it will be made available as quickly as some had hoped.
What Happened
Senate Minority Leader Chuck Schumer told ESPN this week that he plans to introduce federal sports betting legislation.
The New York Democrat said the legislation he envisions will not legalize sports betting nationwide, but rather create a federal framework.
"The stakes are too high — legal sports betting laws must be crafted and executed in a careful and thoughtful way," Schumer said.
"As state legislatures develop new legislation in the weeks and months ahead, I hope they will take these principles under consideration. I also support the efforts in the Congress to debate and develop bipartisan federal legislation that would adhere to these principles. The integrity of sports is too precious to not protect as best we can."
The news comes after Republican Senator Orrin Hatch said he also plans to introduce a federal sports betting bill.
Why It's Important
Height Capital Markets said Schumer's bill would establish a required legislative blueprint for states to follow in the event that state legislatures approve intrastate sports betting.
A mandatory national legislative framework solves none of the state-level political issues and would do nothing to accelerate the pace at which sports betting grows state-by-state, the firm said.
“However, there still does not appear to be anything near a critical mass of federal lawmakers interested in weighing in on this issue via formal legislation. Therefore, while we think it is noteworthy that Schumer, the senior-most Democrat in the Senate, is interested in doing something on sports betting at the federal level, we do not think it will secure a policy victory for him or proponents of his proposal,” according to Height.
What’s Next?
Schumer suggested all sports books use only official league data, a move that MGM Resorts International MGM has already positioned itself for with its partnership with the NBA. In Schumer's view, sports leagues should be involved in what bets are accepted and how they are monitored.
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