Enacted in 1992, the Professional and Amateur Sports Protection Act (“PASPA”) effectively prohibits sports betting in the U.S. at both a federal and state level other than for a few exceptions that benefit four states (Nevada, Oregon, Delaware, and Montana). In recent years, some state governments and professional sports leagues have completely altered or at least moderated their stances against legal sports betting in the United States, most notably in response to the proliferation of Daily Fantasy Sports. In light of what has happened in regulated markets in the U.S. and overseas, additional states have pushed for revisiting regulated sports gambling.
Interest in sports betting increased even more with the news that the Supreme Court of the United States (“SCOTUS”) agreed to hear New Jersey’s appeal from the Third Circuit decision upholding PASPA in Christie v. National Collegiate Athletic Association. Depending on how the Supreme Court rules in Christie, it may be possible for states to legalize and regulate sports betting. Many states are anticipating a friendly ruling from the Supreme Court and taking steps now to ease their entry into the sports betting space when able.
Mississippi is one of only a handful of states that have already taken necessary action. In the 2017 session of the Mississippi Legislature, a Daily Fantasy Sports bill made minor changes to the Mississippi Gaming Control Act, and notably removed language that provided that no wagering could take place on an athletic event that did not take place on licensed casino premises. The amended law simply left in place the requirement that the wager be made on the casino premises.
With this change in the law, Mississippi is arguably ready to be one of the first states to implement sports wagering in the event of a favorable ruling by the Supreme Court with respect to PASPA. Of course, regulations would have to be put in place by the Mississippi Gaming Commission in order to protect the integrity of the betting procedures, provide for internal controls and other necessary items.
Many argue that sports betting alone will not provide much, if any, additional gaming revenue to the Mississippi casino industry or additional gaming tax dollars to the Mississippi treasury. But, other industry professionals dispute that. When one Tunica County casino operator recently was asked what sports betting could mean for Tunica, he replied “it would save us”.
While it is true that sports betting itself may not produce a significant amount of additional gross gaming revenue, additional traffic to Mississippi casinos could mean millions of dollars to the state gaming industry in food and hotel room sales and additional gaming revenue due to visitation from surrounding jurisdictions.
Why would additional patrons come from adjoining jurisdictions? Because sports betting is not yet legal in those jurisdictions and may not be for some period of time, if ever. Thus, Mississippi might get the “jump” on its surrounding states and reap the benefits.
Below is a summary of the current status of sports betting in neighboring jurisdictions. Continue Reading
Jones Walker LLP gaming law partners Marc W. Dunbar, J. Kelly Duncan, Nicole M. Duarte, Kirkland E. Reid, and Thomas B. Shepherd III, together with associate Christopher K. Ulfers, recently authored several chapters in the inaugural Chambers and Partners Global Practice Guide for “Gaming, Gambling & Licensing 2018.” The guide provides legal insight and commentary on key issues and important developments for gaming law in Alabama, Florida, Louisiana, Mississippi, and Texas.
The chapters that were written by Jones Walker gaming practitioners cover current gaming regulations in the states where they practice law.
- Mr. Dunbar, a partner in the Tallahassee office, authored the Florida chapter.
- Mr. Duncan, a partner in the New Orleans office and co-chair of the Gaming team, authored the Louisiana chapter.
- Ms. Duarte, a partner in the Houston office, authored the Texas chapter.
- Mr. Reid, a partner in the Mobile office, authored the Alabama chapter.
- Mr. Shepherd, a partner in the Jackson office and co-chair of the Gaming team, authored the Mississippi chapter.
- Mr. Ulfers, an associate in the New Orleans office, contributed to the Alabama, Louisiana, and Texas chapters.
“We were pleased when Chambers and Partners approached Jones Walker about contributing to its new publication on gaming laws in the United States,” said Mr. Duncan.
“Chambers and Partners is one of the most respected names in the field of evaluating attorneys and law firms, and to be asked to contribute to this inaugural publication is a high honor for Jones Walker’s gaming practice,” Mr. Shepherd said.
Chambers and Partners (www.chambersandpartners.com/) is a premier legal directory that ranks the world’s best law firms and lawyers. The Global Practice Guides provide legal commentary on practice areas in key jurisdictions around the world. Chambers and Partners selects contributing editors who are ranked in the relevant Chambers Guides as the best in their field. The individual contributors who write the ‘Law and Practice’ and ‘Trends & Developments’ sections are selected on the same basis.