Sports Betting is Coming Fast:

Know Key Regulatory and Policy Issues

Relating to Implementation


Today the United States Supreme Court issued a decision in
Murphy v. National Collegiate Athletic Association, ruling that the federal Professional and Amateur Sports Protection Act (“PASPA”), 28 U.S.C. 3701 et seq., was unconstitutional, thereby opening the door for individual states to authorize and regulate
sports betting within their respective borders. Pursuant to PASPA, sports betting had been illegal in all but four states and only Nevada permitted sports betting on a single sporting event. Following the
Murphy decision, state-authorized sports betting offers a new and promising vehicle for generating state revenues.


Spectrum Gaming Group, which wrote the
betting service-provider RFP for the Rhode Island Lottery
, wants prospective stakeholders to understand important regulatory and policy issues associated with implementing sports betting.

free Spectrum White paper:


Legal Sports Betting in The United States: How Can it Evolve? How Should it Evolve?


The precise scope of permissible sports betting options will be established through legislation and regulations in each state. In order to implement sports betting, each state should consider important regulatory
and policy issues relating to sports betting, such as:


The scope of licensing for vendors

Auditing, accounting and reporting requirements

Prevention of money laundering and fraud

Appropriate security protections and safeguards for patrons

Setting the tax rate

Responsible-gaming procedures to detect and minimize problem gambling

Effective measures to prevent underage gaming

Confidentiality of patron information

Effective measures to restrict online sports betting to patrons located within the state


The regulatory framework must be comprehensive and designed to ensure and foster public confidence and trust in the integrity of sports betting operations. In this regard, the sports betting platform must operate
with complete reliability, security and integrity, ensuring that all patrons can place their bets, have unfettered access to betting options and all relevant betting information, and securely collect their winnings in accordance with the prescribed rules and
regulations. Moreover, there should be procedures for dealing with customer service requests and concerns in a timely manner.


Each state must initially determine which state agency will have regulatory oversight over the implementation and operation of sports betting. In addition, the states will have to decide how much authority should
be delegated to the state agencies entrusted with regulatory oversight over sports betting. At a minimum, these designated state agencies must be granted broad regulatory responsibilities and oversight to ensure that sports betting operations are conducted
in a transparent, efficient and effective manner.


In order to accomplish this objective, there must be a comprehensive licensing system to ensure that all vendors participating in sports betting operations are beyond reproach. There must be procedures governing
the investigation and licensing of the potential vendors. The vendors must be required to affirmatively establish their suitability for participating in authorized sports betting, by demonstrating their good character, honesty and integrity, financial stability,
integrity and responsibility and business ability by clear and convincing evidence.


Each state will need to determine how to secure the services of appropriate vendors that fulfill the above suitability requirements. The state should consider whether it is necessary to issue a Request for Proposals
seeking qualified vendors, or whether the licensed casinos or lottery service providers already operating in the state are able to perform the required services without a need for further solicitations.


Each state will also need to determine the authorized locations for sports betting. For example:


Should sports betting be limited to the physical confines of the licensed casino or lottery establishments, or will other locations in the state be authorized to conduct sports betting operations?

Should online/mobile sports betting operations should be permissible?


Finally, the states will need to determine the sports betting options that will be made available to patrons, including designations of sporting events and the types of wagers to be permitted. Sports betting may
be limited to the actual results of the sporting event or can be expanded to include in-game betting, allowing for a multitude of wagers on a variety of outcomes.


The Spectrum Gaming Sports Group provides a full suite of services for both public- and private-sector clients, including:


Market Projections

Public Policy Advisory





Financial Analysis

Land-based and online sports book operations

Technological requirements

Responsible-gaming programs


Sports betting will be the focal point of two upcoming Spectrum conferences:


East Coast Gaming Congress

June 13-14, Atlantic City

National Council of Legislators from Gaming States

Summer Meeting

July 13-15, Cleveland



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