US ruling opens way for states-wide sports betting wagering

14 May 2018
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The US Supreme Court has actually made a landmark judgment that might permit states across the country to legalise sports betting.

It has backed a 2014 state ruling in New Jersey which permits sports betting in gambling establishments and at horse racing tracks.

The court likewise struck down a 1992 federal law banning sports betting gaming.

The news sent out the share rates of sports betting stocks in the US and UK surging, consisting of Britain's William Hill and Paddy Power.

Several major US sports betting bodies had actually opposed the relocation, including the National Basketball Association.
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The National Collegiate Athletic Association stated it was a hazard to the "integrity of athletic competition".

However, Justice Samuel Alito composed on behalf of the Supreme Court: "The legalisation of sports betting needs a crucial policy choice, but the choice is not ours to make.

"Congress can control sports betting gambling straight, however if it chooses not to do so, each state is free to act on its own."

Winners and losers

Shares in UK-based bookmakers leapt on the judgment. Paddy Power Betfair's share price rose 10.5%, 888 Holdings jumped 14%, William Hill's stock acquired 9.4% and GVC Holdings rallied 6%.

In the US, shares in Churchill Downs, which owns horse race tracks and gambling establishments increased by 5.73%.

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

The Supreme Court decision overrules the Professional and Amateur sports betting Protection Act (PASPA) of 1992 that forbade sports betting wagering in the majority of states.

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

Neil Wilson, primary market analyst at markets.com, stated that William Hill stands to gain the most following the judgment because it "can present sports betting operations quite swiftly from Nevada, where it currently and has extremely strong market existence".

He added that the business also has a New Jersey operation "that is primed and all set to begin taking bets within days".

Paddy Power Betfair has an existence in the US through TVG, among the country's greatest online horse racing companies.

Betfair bought 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 sports betting organization in New Jersey.

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