US judgment opens method for states-wide sports betting

14 May 2018

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

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

The court also overruled a 1992 federal law prohibiting sports betting gaming.
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The news sent the share costs of sports betting stocks in the US and UK surging, including Britain's William Hill and Paddy Power.

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

The National Collegiate Athletic Association stated it was a hazard to the "stability of athletic competitors".

However, Justice Samuel Alito composed on behalf of the Supreme Court: "The legalisation of sports betting gambling requires an important policy choice, however the option is not ours to make.

"Congress can regulate sports betting directly, however if it elects not to do so, each state is complimentary to act upon its own."

Winners and losers

Shares in UK-based bookmakers leapt on the ruling. 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 casinos increased by 5.73%.

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

The Supreme Court decision strikes down the Professional and Amateur sports betting Protection Act (PASPA) of 1992 that restricted sports betting in a lot of states.

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

Neil Wilson, primary market expert at markets.com, said that William Hill stands to gain the most following the judgment due to the fact that it "can present pretty quickly from Nevada, where it currently runs and has really strong market existence".

He included that the company 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, among the nation's biggest online horse racing businesses.

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

Paddy Power Betfair also runs an online casino and horse race wagering organization in New Jersey.
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