The legalization of sports betting across the United States was expected to bring a wave of change, curbing the shadowy corners of illegal wagering. Yet, despite the green light in 38 states and Washington, DC, the aftermath of the 2018 Supreme Court ruling that struck down the Professional and Amateur Sports Protection Act (PASPA) hasn't fully quenched the thirst of black market betting, especially in states like New Jersey and New York.
Fresh off the press, a report by the Campaign for Fairer Gambling (CFG), as unveiled by Yield Sec, points to a staggering $40.92 billion still swirling through the unregulated underbelly of internet casinos and sportsbooks. A closer look reveals that bettors in Minnesota, New Jersey, and New York are leading the charge, contributing a combined $9.5 billion to this total.
The plot thickens in Minnesota, where neither iGaming nor sports betting has received the nod, making its high ranking on this dubious list somewhat understandable. However, the spotlight turns quizzical when it shines on New Jersey and New York. Both states, with New Jersey permitting all forms of wagering and New York boasting the largest regulated online sports betting handle, stand as glaring contradictions to the belief that legalization would snuff out the black market.
The CFG's data paints a troubling picture. In New Jersey, where the law is on the side of legal betting, locals still handed nearly $1 billion to shadowy bookies and illicit online platforms, with another $719 million gambled away in unregulated online casinos. New York's figures are even more alarming. Despite ongoing debates to legalize iGaming, New Yorkers splurged $3.4 billion on unlicensed internet casinos and $1.9 billion on illegal sportsbooks.
This ongoing saga has reignited calls for more robust federal oversight in online gambling, a sentiment echoed by CFG's Webb. "This is one reason why we need federal involvement in the oversight of online gambling. We are eager to equip policymakers with real, reliable data, so that we can have more informed, balanced debate, and ultimately smarter gambling policy," he stated.
While the promise of increased consumer protection and tax revenue dangles like a carrot in front of state legislators, New Jersey and New York's experiences serve as stark reminders that the path to eradicating black market betting is not as straightforward as it seems. As the debate continues, the question remains: can a blend of state approval and federal oversight finally close the book on illegal betting, or are we merely scratching the surface of a much deeper issue?
