The United States Supreme Court recently passed a ruling that has enabled the states to take their own call with regard to legalisation of sports betting, bringing down a 1992 Federal Law that had barred sports betting activities in many places, triggering a rush among states and businesses to cash in on the amazing opportunity. The chance to win huge sums of money by banking upon one’s knowledge of sports events is at the core of the multibillion sports betting industry.
A new era
The Supreme Court justices endorsed New Jersey’s bid for allowing such betting activities, ushering in a new era for the various sports leagues of the country that had blocked this move in fear that it would threaten the integrity of different competitions, resulting in match fixing and other kinds of cheating activities.
The ruling sent shares of casinos and gaming companies soaring on the stock markets, with the highest court of the country voiding the Federal Professional and Amateur Sports Protection Act, and upholding the legality of 2014 state law that allowed for betting activities at the New Jersey’s horse racetracks and casinos.
Many states view lotteries and sports betting activities as an excellent means of tax revenue. Going by the estimates of American Gaming Association, there is an almost $ 150 billion a year sports betting market that operates illegally in the country.
The ruling has taken US a step closer in legalisation of sports betting in all its states, rather than only few places like Nevada that’s home to Las Vegas, the gambling capital of US. The old 1992 law had prohibited all kinds of sports betting activities in all of the United States, except Nevada and to some extent in Oregon, Montana and Delaware.
In a statement to the press, Phil Murphy, a Democrat and New Jersey Governor, stated, “New Jersey has long been the lead advocate in fighting this inherently unequal law, and today’s ruling will finally allow for authorized facilities in New Jersey to take the same bets that are legal in other states in our country.”
Gambling companies’ stocks tough new highs
The news has triggered a rally in the stocks of bookmaking companies, sending many to a record high. The companies into gambling technologies have gained 10% or more. For instance, the shares of Scientific Games Corp, which is into development of sports betting technologies and gaming systems gained over to 11% and rose to a new high!
On the other hand, the shares of casino and racing companies also rose significantly. For example, Churchill Downs, that operates Kentucky Derby, rose by 4.9% and closed at a new high, and Penn National gaming rose by 4.7%. Caesars Entertainment Corp on the other hand rose by 5.5%.
William Hill PLC, the US subsidiary of the popular British sports betting company has already been in talks with New Jersey’s state officials to open an outlet at the Monmouth Park racetrack. The company’s shares jumped by almost 11% despite the fact that only 20% of its annual revenue comes from the US.
