2017 looks set to be a monumental year in the world of sports betting. Several states including New Jersey and Maryland are pushing legislation to allow for legalized sports betting, PASPA is in its 25th year and there’s a former casino mogul as the President of the United States. With growing interest in Daily Fantasy Sports betting groups like DraftKings and FanDuel, the pressure is on for major sports leagues to get in on the action. While the NFL has been the most outspoken against sports betting, the MLB never seemed too keen on it either. That is, until MLB Commissioner Rob Manfred said that the league would be “reexamining” their stance on gambling.
Manfred recently spoke at a Yahoo Finance All Markets Summit in New York, where he made his speculative remarks regarding the future of sports betting from an MLB standpoint.
“Sports betting happens. Whether it’s legalized here or not, it’s happening out there. So I think the question for sports is really, ‘Are we better off in a world where we have a nice strong, uniform, federal regulation of gambling that protects the integrity of sports, provides sports with the tools to ensure that there is integrity in the competition…or are we better off closing our eyes to that and letting it go on as illegal gambling? And that’s a debatable point,” Manfred said.
Manfred also spoke of how this issue is an ongoing conversation with the associated owners in the league. This logic echoes the sentiments of NBA Commissioner Adam Silver, who has long been a proponent of repealing PASPA and regulating sports betting. NFL Commissioner Roger Goodell has remained vigilant in his stance against PASPA, but a proposed Las Vegas NFL franchise could change things.
Referencing Manfred’s earlier point, sports betting does indeed happen. If bettors aren’t using Daily Fantasy Sports groups, then they are likely resorting to offshore sportsbooks. According to the American Gaming Association, betting on the Super Bowl reached an estimated $5 billion. This statistic likely has commissioners like Manfred salivating at the potential regulatory benefits. Aside from the financial upside, Manfred also sees sports betting as another form of “fan engagement.” This thought certainly aligns with the American Gaming Association’s estimate. If there is that much money going into sports betting, why wouldn’t leagues and individual states want some form of regulation?
Another interesting aspect for the future of sports betting is Trump’s presidency. It’s common knowledge that Trump used to have casino ties, and he’s obviously been relevant in the business world for most of his life, so his understanding of the financial benefits could play a factor in repealing PASPA. As for any actual desire, Trump was interviewed by broadcaster Jim Gray on Westwood One radio where he discussed his thoughts on legalizing sports betting:
“Well, what I’d do is I’d sit down with the commissioners. I would be talking to them, and we’ll see how they feel about it. Some would not want it, and probably others—and I’ve read others maybe do. But I would certainly want to get their input and get the input from the various leagues, and we’ll see how they feel about it. I’d also get the input from lots of law enforcement officials, because, obviously, that’s a big step. It will be studied very carefully,” Trump said.
The MLB is certainly interested in a conversation, as is the NBA. If the league commissioners and individual team owners can reach some sort of common ground, then there may be incentive from President Trump to also reexamine the stance on sports betting. This could allow for more sports gambling for Louisiana residents and many other states.