When the U.S. Supreme Court struck down the federal ban on sports betting in 2018, it gave individual states the power to license legal sportsbooks, protect consumers and generate needed community tax revenue.
Five years later, the benefits of regulated betting are on full display across the country: 37 states and Washington, D.C., have legalized sports betting and generated $3 billion in state and local taxes for public education, health care, infrastructure and more. In April of this year, Pennsylvania sportsbook betting brought in more than $51 million in tax revenue for the state.
Americans have taken notice. New research shows 85 percent of American adults agree with the Supreme Court’s decision to strike down the Professional and Amateur Sports Protection Act — a substantial increase since 2019. Moreover, 77 percent support legalization in their home state.
Importantly, legalization brings sports betting out of the shadows and into the protections of a regulated marketplace. Whether it’s college or professional sports, leagues and the legal gaming industry have a vested interest in ensuring the integrity of competition more than anyone else.
Legal operators collaborate with more than 5,000 gaming regulators, leagues and other governing bodies to monitor and investigate any concerning wagering activity. The industry also invests in education programs to ensure students understand the rules around and risks of gambling. We know the focus on integrity monitoring and education has only grown as legal sports betting has expanded around the country.
Meanwhile, bookies and offshore betting sites operate outside the law and share none of these same interests. Not only do they have no regard for competition integrity, but wagering activity with illegal operators is not and cannot be monitored for wrongdoing. Only in the legal market can potential wrongdoings be prevented, investigated and corrected.
The fact is illegal sportsbooks openly defy the rules while legal businesses are deepening their commitments to consumer protection.
Take responsible gaming, for example. The legal industry invests millions of dollars each year in limit-setting tools to empower players, identity and location verification technology, consumer education, and problem gambling support. Illegal operators provide none of these protections, including age verifications and especially important safeguards on college campuses.
The bottom line: The expansion of the legal market is working for my constituents in Pennsylvania and jurisdictions across the country. Consumers are better protected, competition integrity has been made stronger, and states have gained essential tax revenue previously taken by bad actors.
Like any growing industry, legal sports betting deserves a level playing field. That includes updating the federal tax code to account for the expansion of legal wagering and using the full force of the U.S. government to go after illegal businesses.
Policymakers and law enforcement have a chance to protect consumers and support legal businesses across the country — it’s critical we don’t miss our shot.
Rep. Guy Reschenthaler represents Pennsylvania’s 14th District. He is a co-chair of the Congressional Gaming Caucus, a bipartisan group of 19 members of Congress from across the country convened to discuss federal policy issues related to the U.S. casino industry and educate congressional colleagues on related regulatory and legislative matters.