US ruling opens way for states-wide sports betting

14 May 2018

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The US Supreme Court has actually made a landmark judgment that could allow states throughout the country to legalise sports betting.

It has actually endorsed a 2014 state ruling in New Jersey which permits sports betting in gambling establishments and at horse racing tracks.

The court also struck down a 1992 federal law prohibiting sports betting.

The news sent the share prices of sports betting stocks in the US and UK rising, including Britain’s William Hill and Paddy Power.

Several significant US sports betting bodies had opposed the relocation, including the National Basketball Association.

The National Collegiate Athletic Association stated it was a danger to the “integrity of athletic competition”.
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However, Justice Samuel Alito composed on behalf of the Court: “The legalisation of sports betting gambling requires an important policy choice, however the choice is not ours to make.

“Congress can regulate sports betting straight, but if it chooses not to do so, each state is totally free to act on its own.”

Winners and losers

Shares in UK-based bookmakers jumped on the ruling. Paddy Power Betfair’s share price rose 10.5%, 888 Holdings leapt 14%, William Hill’s stock got 9.4% and GVC Holdings rallied 6%.

In the US, shares in Churchill Downs, which owns horse race tracks and gambling establishments increased by 5.73%.

But Wynn Resorts, the Nevada-based hotels and gambling establishment operator, saw its share price fall by 2% on the possibility of competitors from new entrants to sports betting.

The Supreme Court choice strikes down the Professional and Amateur sports betting Protection Act (PASPA) of 1992 that forbade sports betting in many states.

It is just permitted in just a couple of states, consisting of Nevada, home to Las Vegas, Delaware, Montana and Oregon.

Neil Wilson, primary market expert at markets.com, stated that William Hill stands to gain the most following the ruling since it “can present gambling operations pretty promptly from Nevada, where it currently runs and has very strong market existence”.

He added that the business likewise has a New Jersey operation “that is primed and prepared to start taking bets within days”.
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Paddy Power Betfair has a presence in the US through TVG, one of the nation’s biggest online horse racing companies.

Betfair bought TVG in 2009 for $50m before it went on to combine with Paddy Power.

Paddy Power Betfair also operates an online gambling establishment and horse race wagering company in New Jersey.

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