The Case for Legalizing Sports Betting

Isn't the answer always C?

Good day, and Happy Selection Sunday Eve-Eve!  We begin today's banter with a pop quiz:  According to the American Gambling Association, 4.2 billion dollars was bet on the Super Bowl this year.  Of that 4.2 billion, approximately what percentage was gambled illegally?

a.  67%
b.  78%
c.  85%
d.  97%

Things that make you go hmmmm... and the answer?


D.  97%.  Holy.  Crap.

Despite the name of this shindig, outside of trips to Vegas, side bets with friends, and fantasy sports, I do not gamble on sports.  I do give advice on plays, but don't play them myself (friends will concede I hit about 67% of the time, which has always tempted me to play, but I know I'd overthink it if I did). I got on this crusade after Draft Kings and Fan Duel were shut down in several states after being accused of allowing illegal gambling, of which I loudly disagreed.  Consider the following:

Old school WWE

Me - This is such bulls**t
Wife - Wait, isn't that gambling?
Me - Uh, yeah, fantasy sports is gambling.
Wife - Isn't gambling illegal?
Me - Yes
Wife - Well, then that's why it got shut down

She's so rational and about "things being illegal."  Good thing the kids call her the boss.  Anyways, I completely agree fantasy is gambling.  Which brings us to quiz question #2... Why doesn't the government shut down every website that offers fantasy sports then, including NFL.com, NBA.com, espn.com, yahoo.com, cbssports.com, foxsports.com, etc.?  Hell, NFL.com even offers a place on its fantasy site for managers to track fees.  Doesn't that sound like encouraging gambling?

Still explaining the Ashley Madison thing

a.  67% of government employees play fantasy sports on these sites
b.  If they shut those down, they'd all lobby against the current Congress
c.  The government makes a crap ton of tax money off those sites
d.  Government employees are still too busy trying to explain the Ashley Madison thing to their wives.

While all of the answers are definitely possible, the 100% correct answer is C (didn't you get the hint at the jump?).  Follow me, Freakonomically, for a moment... Think of all the ad space on these sites.  Then think about the revenue those sites generate for those ads.  Then think about the corporate tax rate those sites pay to the government (Google suggests this is 29%).  So let's see... carry the 2, add 5, divide by 10.  S**t, where's the calculator?  Oh, there it is.  Let's assume any of these sites make at least $1 billion dollars in ad sales.  That would be about $290 million dollars in tax revenue.  While Draft Kings and Fan Duel surely pay taxes, I'm guessing they aren't raking in that type of profit.  Plus, subtract any fees states collect off property taxes, permits, inspections, etc. from standing buildings, and you could see the additional profits from physical buildings.

But to me, this really comes down to two main arguments.

Brethren to the south

1.  Fairness - Currently, per the quite-possibly nconstitutional Bradley Act of 1992, only four states are allowed to have sports betting - Nevada, Oregon, Montana, and Delaware.  It's obviously a huge benefit to these states to have this, especially Nevada, whose economy would probably not exist if not for the gaming industry.  I'm honestly shocked this hasn't been overturned in Court.  Proponents argue it should be, citing the Constitution - "the U.S. constitution reserves to the states all rights not explicitly granted to the Federal government—such as gambling regulation."**  Last I checked, this country is the home of equal rights.  Why is it my brethren to the south can gamble away on any game they so choose, but we can't?  

To be fair, it's not like New York and Illinois, two states that have stopped Draft Kings and Fan Duel, have casinos or race tracks or anything like that.  I mean, it would be REALLY hypocritical if they allowed all other sorts of gambling, but not sports betting, right?  How crazy and stupid would they look???  Wait, what's that, Mojo?  Those states do have casinos and racetracks?  And you can gamble there?  Are you telling me our politicians are a bunch of hypocrites???

2.  Freedom - Everyone Most people in this country work really hard for their money.  Last I checked, its not up to the government to tell us what to do with it.  For example, let's say you want to invest, oh, $250,000 in a thought-provoking, humorous blog that focuses on sports and life.  You should have the right to contact them and scratch that check.  Just as you should have the write to buy a good steak, donate to a great cause, or take your significant other to a nice fourth meal.  

Early appearance

Out of the principles of this county, you should be able to bet on sports.  It's not like everyone who wants to isn't already doing it.  Did you remember the answer to Question 1???  Well, let's conclude with Question 3... According to the Fiscal Times, approximately how much money was bet on the NCAA tournament last year?

a.  $4 billion
b.  $6.2 billion
c.  $7.8 billion
d.  $9 billion

Your answer is here, or if you hate reading, you can scroll to the bottom.***  I asked Mojo if he wanted to write a counter-argument to legalizing betting, but he agreed with me, and added that players in the sport should not be allowed to bet on it.  I agree wholeheartedly.  However, for the life of me, I don't get why the major sports leagues are against it... though the NBA has softened up on it a bit.  Especially the NFL, which posts it's lines anywhere anyone will look.  Though with Goddell in charge, I guess that hypocritical stance isn't shocking.

Patriots... well, sort of

So I encourage you to join us here in New Jersey and fight to legalize sports betting.  I, for one, do not plan to bet any more on sports than I do now, which is to say, never.  Coming up, Mojo and I discuss the worst decision we have ever made and your exclusive opportunity to see live the results of said decision.  My wife has already concluded it is, indeed, a really, really dumb idea.  Check us out on Twitter and definitely look out for that dumb decision post.  Hasta.



** Wikipedia!!!

*** d. $9 billion.  And if 97% is bet illegally, as in the Super Bowl example, that's a whole lot of untaxed revenue waiting to be collected.