By the looks of it, sports betting won’t just be for individuals anymore once politicians have their way in Nevada. Right now only individuals at the local casino sportsbooks can place wagers on any game they like. That could change as private equity groups will now have the ability to pool large groups of money on behalf of others and place bets in the Nevada based sportsbooks.
The Senate Judiciary Committee went ahead and approved Senate Bill 346, and this would allow the Nevada Gaming Commission to officially adopt rules enabling them to regulate “entity” bettors. At the current moment, under Federal law drafted in 1992, Nevada holds a monopoly that lets them allow individuals to place bets on any sporting bet offered in the state casinos.
Now a bill sponsored by Judiciary Chairman Tick Segerblom, D-Las Vegas will have people betting on the outcome of federal elections and that has passed the committee. The aim for Nevada is to grab some of the illegal sports betting, that is escaping the state and their monopoly due to people placing bets elsewhere. This market is estimated at $380 billion with illegal betting going on any where at any time in the US. Bill SB346 supporters think that if the bill is passed, the “entity” sports bettors will come to Nevada and do it all above the table in a legal environment.
The fast moving bill, sponsored by state Sen. Greg Brower, R-Reno, now moves to the full Senate. Most of the politicians in the state think this is a good thing that only great things can come out of it, especially all the large bets that could mean lots of revenue for the state. Some of the top gaming consultants like Mike Lipparelli who is a former Gaming Control Board Chairman thinks the measure will be good for Nevada. “The state should embrace this idea,” Lipparelli said. “It will increase transparency, bolster competition and move at least one small element of the billion of dollars of illegal wagering out of the shadows. I have high confidence Nevada regulators will create a balanced framework that would address any concerns that could emerge.”
Now betting entities will come together and form betting syndicates and enable them to place massive sized bets on major sporting events. Games like the Superbowl, March Madness and the NBA finals could see incredible sized bets being placed legally on behalf of large “entities”.
This could increase the now $3.5 billion to an estimated triple the size now in over five years once the bill becomes a law. Even hedge fund companies will be able to place legal wagers on behalf of their clients and make huge profits if they win. Just like the stock market these companies will do their research and know exactly what they are betting on.
It’s also a smart move on Nevada’s side so that there will be no more illegal betting coming in from the other states, “The Gaming Commission will make regulations and (make) sure it is not abused,” Chairman Tick Segerbloom said. “There wouldn’t be any betting by illegal bookmaking operations (from other states). The commission can watch for that.”
Obviously, one of the biggest concerns will be to detect any signs of money laundering or types of things like messenger betting currently going on in the current illegal industry. One of the ways to guard against this will be to have companies all be registered, including partnerships, shareholders and investors with the Nevada Gaming Commission in order for them to take advantage of the entity betting opportunities. Not only that but they will have to be located in the state to operate and be accepted. The bill will now move on to the assembly where it will be up for debate.
Everyone seems to be on board for this bill to move forward, except one unlikely candidate A.G. Burnett the current Control Board Chairman who is concerned that there will be more detailed scrutiny from the IRS and federal watchdogs looking into every nook and cranny for illegal activity.
Even if the companies are located and hold a license to do place the large bets of behalf of clients, it could be tricky to really find out who they are sometimes. Either way this bill is moving forward and if it does, you will see some rather large bets being placed on sporting events in the not to distant future in the state of Nevada.