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These partnerships represent a profound shift in the leagues' position on line monitoring, the task of tracking gambling data in an attempt to identify unusual moves or unnatural money. In addition, game integrity concerns -- often cited as a reason to oppose regulated sports betting -- are now increasingly being used as a reason to support legalized sports wagering, given the ability to track statistical data. While the leagues' stances are shifting gradually, experts say sports betting of the legal variety is still years away from arriving at your local casino or on your mobile phone.
New Jersey has invested millions of dollars in legal fees while fighting the sports leagues and challenging PASPA the federal prohibition on state-sponsored sports betting in its ongoing case that began back in In October, New Jersey filed its second appeal to the U. Supreme Court on this issue. This summer, Pennsylvania passed a resolution urging Congress to "lift the Federal ban on sports betting and to allow states that authorize, license and regulate casino gaming, including the Commonwealth of Pennsylvania, to legalize sports betting through its licensed facilities.
While it's clear that states are already taking steps, it is unknown exactly how many would begin offering legal sports betting if the federal prohibition were lifted. Estimates range from less than half to as high as The landscape in some of the states that do opt in may be different than that in the United Kingdom, where sports betting is legal and retail bookmaking shops are commonplace on city streets. More conservative states likely will restrict sports betting to casinos and horse racing tracks; others may allow locations that sell lottery tickets to accept sports bets; and some will have betting kiosks at sports bars, gas stations and liquor stores.
That's where it makes sense to place bets and to be done safely. A widespread, fully mature online sports betting market in the U. By the time the U. We just need to look around to see the best practices. While different avenues to legalization are explored in the U. Online daily fantasy sports sites, with their infrastructure and established player bases in a coveted demographic, would appear to be in good position to offer traditional sports betting if made legal, as well.
A review of recent patents in the betting genre revealed Microsoft, Sony, Reuters and Wall Street financial firm Cantor Fitzgerald to be either existing holders or applicants. A number of individual entrepreneurs are in the mix, too; patent No. A Microsoft spokesperson said the company had "nothing to share at this time" regarding its patent for a betting exchange or any future interest in the sports betting industry.
Microsoft's patent coincides with a research paper by David Pennock, a principal researcher and assistant managing director for the company. Pennock's research produced an innovative wagering mechanism akin to pari-mutuel systems used in horse racing that Microsoft wanted to patent. There were no immediate plans for its use, Pennock said, but he does envision a future with tech companies involved in the sports betting world.
I don't have that answer and neither does anyone else at this point. If sports betting is legalized and the tech titans do get into the bookmaking game, are Las Vegas' days numbered as the epicenter of legal American sports betting? Is the traditional bookmaker an endangered profession? Manteris believes the state's plus years of regulating sports betting are invaluable and envisions a scenario where Nevada would remain a central hub for sports betting in the U.
Recently, Nevada has taken steps to position itself for such a scenario. The majority of the state's books offer mobile sports betting in Nevada. In , the state passed a bill clarifying that the state's licensed operators could manage sports pools in other legal jurisdictions, and Nevada also has set up a scheme where out-of-state bettors can invest into sports betting entities -- similar to mutual funds -- that are managed from within the state.
They appear willing to surrender the monopoly Nevada has enjoyed in exchange for the ability to expand into other jurisdictions and offer one of the rare forms of gambling that is growing: sports betting. While business is booming, Nevada remains a small portion of the enormous American sports betting pie.
Experts estimate more than 90 percent of all sports betting in the U. That behavior must change if the U. For the most part, the offshore industry has evaded U. It's going to take more than just offering competitive odds for a new regulated market to take a bite out of the established offshore market, one longtime offshore bookmaker told ESPN. Sources said operators desiring secure phone lines have considered purchasing an entire telecommunications company on an island, and some bookmakers are already moving operations onto yachts in international waters.
A commercial satellite engineer told ESPN that such technology "already exists. There's also a platform being designed that would take the bookmaker completely out of the equation. Every stock exchange -- and its sports betting cousins Betfair, Matchbook and Smarkets -- is centralized, meaning each bet starts and ends in the same place. Augur, which recently entered beta, is a decentralized prediction market fueled by virtual currency.
Users are free to offer or match a plethora of sports-related options. The Augur platform will be available to anyone willing to deal in e-money. Jerry Brito, the executive director for Coin Center, a nonprofit research advocacy center focused on cryptocurrency and computing technologies like Bitcoin and Ethereum, believes a decentralized sports betting exchange market is the future.
And because it's potentially global, it could be a really big book with a lot of bets. That's going to be very interesting to watch. Sophisticated sports bettors in the future may be able to place their bets on U. The process for regulatory approval of such betting platforms has already started at the federal level and in Nevada, multiple experts said.
The CFTC, which regulates futures and options markets, is currently considering the legality of an exchange-type platform that could include sports, two sources told ESPN. A CFTC spokesman declined to comment on any pending case that was not yet in the public record. A betting exchange is the functional equivalent of a stock exchange for sports, where bettors can offer or take positions on sports events.
In such an exchange, every bettor becomes a miniature bookie, proposing potential wagers and waiting for one or more others to bite. It's a peer-to-peer model, with the platform charging a commission fee. In , Betfair, the mammoth London-based betting exchange that revolutionized sports gambling in Europe a decade ago, was granted an American patent titled "Betting Exchange System.
Betfair began operating a horse racing exchange betting platform in New Jersey earlier this year after several years of legal wrangling. Smarkets, a smaller betting exchange operator based in Europe, recently announced plans to open an office in the U.
The exchange model would seemingly give the sports leagues an opportunity to directly monetize sports betting, something experts said may be all that's stopping them from reversing their decades-long opposition to legalization. In the exchange model, the leagues wouldn't have a stake in the outcome, like a traditional bookmaker. Instead, they could profit off of how much is wagered through a trading commission, tacking on a data surcharge or a "right to offer bets" type of licensing fee as is found in other countries.
Not everyone believes the exchange model will be the dominant platform in a future regulated market, though. S, said the exchange is the niche product. The NBA's Spillane, while familiar with the exchange model, says the league hasn't determined whether a certain betting platform is better than the rest. And backing or selecting one particular form of betting to the exclusion of others, I'm not sure that's going to accomplish that goal.
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