US judgment opens method for states-wide sports betting wagering

14 May 2018

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The US Supreme Court has made a landmark judgment that might enable states across the nation to legalise sports betting.

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

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

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

Several major US sports betting bodies had actually opposed the move, including the National Basketball Association.

The National Collegiate Athletic Association stated it was a risk to the “integrity of athletic competition”.

However, Justice Samuel Alito composed on behalf of the Supreme Court: “The legalisation of sports betting needs an important policy choice, but the choice is not ours to make.

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

Winners and losers

Shares in UK-based bookies got on the judgment. Paddy Power Betfair’s share rate increased 10.5%, 888 Holdings jumped 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 rose by 5.73%.

But Wynn Resorts, the Nevada-based hotels and casino operator, saw its share rate fall by 2% on the prospect 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 restricted sports betting in most states.

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

Neil Wilson, chief market analyst at markets.com, stated that William Hill stands to gain the most following the judgment because it “can present gambling operations quite quickly from Nevada, where it already runs and has really strong market presence”.

He added that the company likewise has a New Jersey operation “that is primed and all set to begin taking bets within days”.

Paddy Power Betfair has a presence in the US through TVG, one of the nation’s biggest online horse racing organizations.

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

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

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