Super Bowl LI will go down in history as one of the most exciting Super Bowls in history for a number of reasons. The New England Patriots had an incredible comeback against the Atlanta Falcons and took the game to overtime for the first time in its history. Aside from the largest comeback in Super Bowl history and the first ever Super Bowl to go into overtime, Super Bowl LI garnered $4.7 billion worth of bets, according to the American Gaming Association.
While this statistic reflects the amount of money going into sports betting, there’s an aspect to it that’s even more telling. Out of the $4.7 billion bet on the Super Bowl, 97% of the bets ($4.5 billion) were placed illegally. How could this much money be bet illegally? It’s because of PASPA. PASPA, or the Professional and Amateur Sports Protection Act, is a federal ban on sports betting in 46 states across the nation. That measly 3% of bets placed legally were placed in the one state where single-game betting is allowed—Nevada, or the sports betting epicenter of the United States.
PASPA was passed in 1992 and has been the standing law on sports betting in the United States for 25 years. Apart from Nevada, the only other states exempted from PASPA are Oregon, Montana and Delaware. This is because they already had some form of sports betting in place, though it was a more specialized form like parlay betting or sports pools. As mentioned earlier, Nevada is the only state allowed to have physical sportsbook locations.
This statistic regarding the amount of bets placed illegally is important because it reflects a changing perception on sports gambling. It shows that people are interested in sports betting, so much so that they will even go so far as to place them illegally. It also reflects the amount of money going into sports betting that could be regulated and put towards something in the state. As it stands now, Nevada is the only state benefitting off a regulated sports betting market.
Geoff Freeman, President and CEO of the American Gaming Association, believes that the government should repeal PASPA. Freeman’s logic falls in line with other powerful figures in this community, such as MLB Commissioner Rob Manfred and NBA Commissioner Adam Silver, who have acknowledged how much sports betting already happens. If this is the case, which the numbers show is true, then why can’t the government and major professional sports leagues come together and establish some type of standardized industry. “A regulated marketplace would generate tax revenue and jobs, protect consumers and leverage cutting-edge technology to strengthen the integrity of the games we all love,” said Freeman.
Freeman may be getting his wish soon, as several pieces seem to be falling into place regarding sports betting. There are several states pushing legislation that establishes legalized sports gambling, though PASPA still blocks any formal move. New Jersey, the most outspoken state against PASPA, is awaiting word from the Supreme Court on whether they’ll hear their appeal or not.
The numbers associated with betting on the Super Bowl LI not only show an increase in sports betting, but also a need for a change to the sports betting perception. South Dakota is one of the states affected by PASPA, and South Dakota sports gambling utilizes offshore sportsbooks because of it. These offshore sportsbooks are all legally sanctioned and regulated, but they don’t have the same physical convenience of the Vegas sportsbooks. If PASPA is repealed, South Dakota will have the opportunity to bring sports gambling to the state. Going by the numbers, Americans seem to want sports betting, so why not legalize it?