Yesterday, sports bettors got a rude awakening. They weren’t just thrown under the proverbial bus. They were mauled by a 16-wheeler of steel-belted radials encrusted with heavy snow chains. Then, the bus cranked into reverse and the helpless collective known as the “American sports bettor” was flattened again.
In case you missed the news, sports gambling faced its own “vice squad-lite” version of so-called “Black Friday,” when authorities in New York went after several agents alleged to be involved in offshore sports gambling. The net of dozens of arrests stretched all the way from the East Coast to Las Vegas, and even entangled Cantor’s head of sports wagering.
My reaction to yesterday’s news wasn’t so much one of surprise, but rather mild curiosity as to why it took law enforcement so long to clamp down on a blatantly conspicuous activity that’s unequivocally forbidden in most localities and states, as well as outlawed nationally by the infamous 1961 Wire Act.
A few years ago, I penned an editorial for Bluff magazine on the odd and uneasy connection between two gambling sectors — poker and sports wagering — when it comes to fighting for legalization. Given the renewed timeliness of this issue, I thought it might be a good day to revisit this subject.
Note: This article first appeared in Bluff magazine in March 2010.
Should Sports Bettors Be Thrown Under the Bus?
In the Fight for Poker Player Rights, Sports Betting Remains an Albatross
by Nolan Dalla
If a poll were to be taken, I expect an overwhelming majority of readership would agree poker player rights should enjoy more rights and freedoms. We agree playing live poker should be legal in our communities. We probably agree that online poker should also be legal. [1]
Disagreement starts as to how we make this happen and the best way to achieve our goal. Should the poker industry continue its painstaking attempts to sway elected officials one vote at a time? Should we create a national public relations campaign to educate the public about poker’s deep-rooted historical legacy and potential benefits to society? Should we seek out a judicial solution, which means trying to win a landmark legal case in state and federal courts? Should we trumpet legalized poker’s obvious libertarian connections, an argument which appeals to advocates of limited government?
Activists for poker rights agree on at least one strategy. And that is, pumping up the volume that “poker is a game of skill.” The facts on poker as a skill game are irrefutable.
Yet, poker still remains widely misunderstood and even tainted – at least in the public’s eyes in its quest for absolute legitimacy in the way, let’s say that baseball or chess are perceived. This is due to its perceived association with gambling. Indeed, most non-poker players don’t make any distinctions between poker and gambling since our game is, after all, played mostly in casinos.
Admittedly, many of poker’s biggest events take place in Las Vegas. We may be correct about the “skill” thing. But when it comes to reversing the attitudes of 300 million people, which just so happens to include some very influential elected representatives in Washington, perception is far more important than reality.
Despite our best intentions and the noble efforts of a select few, poker has failed to separate itself from gambling. Moreover, when it comes to debating the future of online poker, this implicit association has cost us dearly. Just about every media outlet which examines the online poker issue lumps poker along with casino games and sports gambling.
Swallowing your philosophical principles for political expediency can be a difficult thing. This is particularly true if you’re like me, which means standing up for what you believe in. I also happen to be a sports bettor. I expect most of us who support online poker’s legalization also favor the same rights for sports bettors. Just as we suggest adults should have the freedom to play poker, one should be equally free to wager on a sporting event. That narrow view is part of a broader philosophy, that most people should have the right to spend their income and time as they please.
Indeed, poker players share many common traits with sports betters. When it comes to the federal government clamping down on our rights in recent years, we’ve all been thrown into the same collective dungeon. We’ve been characterized as outlaws by none other than our own Department of Justice and by various states and courts. The lotteries despise us. Some Indian tribes fear us. Some casino moguls want to destroy us. And some of the most powerful people in politics loath us.
The Unlawful Internet Gambling Enforcement Act of 2006 (UIEGA) does not carve out exceptions for poker. Financial institutions are prohibited from knowingly dealing with sports betting sites and poker sites. Although attempts have been made to carve out an exemption for poker and/or assert federal gambling laws to not apply to poker because it is a skill game, we remain connected to sports gambling like a ball to a chain.
That said, it’s time to get a hacksaw and start sawing on the links.
It’s unfortunate that gambling interests are often bitter rivals. Instead of working together, we tend to fight. Consider that whenever legalized casino gambling comes up, the horse racing industry usually opposes the measure. When Internet gambling initially surfaced, land-based casinos declared war. Even the casino industry’s own trade organization, the American Gaming Association (AGA), has only recently reversed its longstanding opposition to online gambling (and poker). We’re glad the AGA finally made it to our party, but the fact remains – we are often our own worst enemies when it comes to working for the broader acceptance of legalization of gambling and poker.
The bottom line is – being connected to sports betting in any way is a losing hand for poker, and we need to muck it fast. Sports gambling will not be legalized at the federal level. Period. Sports leagues and the NCAA are far too powerful to lose a fight in congress over sports gambling. Recent gambling-related scandals diverted any possible momentum for gaining broader support.
The decision to cut sports betting loose is made much easier by the sports betting industry’s own actions, or lack thereof. Consider the facts. To date — no group of sports bettors, no sports betting site or company, nor any major figure from the sports industry has done a thing to support legalization. Their silence has not just been deafening, but embarrassing. Despite having just about as many sports bettors in this country as poker players, no “Sports Bettors Alliance” has been formed similar to the Poker Players Alliance. No domestic or offshore company has stepped forward to finance any kind of campaign to gain support. Only one individual has ever challenged the federal government’s case, and he received almost no support from anyone in the business other than his own company. [2]
So, let’s get this perfectly straight: While poker players have been signing up and organizing by the hundreds of thousands, while poker players essentially have movements and active members in all 50 states, while poker players have donated millions of their hard-earned dollars to various organizations and pro-poker candidates, while poker companies have worked to overturn federal laws and bankrolled strategic initiatives, and while poker players just about everywhere continue to fight for their rights, tell me — what exactly have sports bettors or the sports betting industry done? For your answer, crank up the sound of chirping crickets.
They’ve done nothing.
Sports betting deserves its sad fate, which is to remain being unmistakably illegal inside the United States. If sports gamblers and betting companies who may potentially reap enormous rewards through legalization aren’t willing to step up and fight for their rights, or join with us as we fight for ours, why should we carry their burden?
Forget them.
When it comes to winning a political fight, you need powerful allies and strong alliances. Once upon a time a long time ago, I considered sports bettors and the sports betting industry to be equal partners with us in a noble fight. No more. I now reverse that opinion. Poker players must be in oour own fight to win and do whatever is necessary to achieve success. And, whether we care to admit it or not, sports betting is a loser.
I say, throw them under the bus and walk away.
Footnotes:
[1] I broadly define “legal on the Internet” to include related laws, such as the Unlawful Internet Gambling Enforcement Act.
[2] Jay Cohen, founder and CEO of the sports betting site WSEX, was convicted of violating the Federal Wire Act.
Nolan Dalla writes frequently about poker and sports betting. He has worked as an executive for Binion’s Horseshoe, PokerStars.com, and Harrah’s Entertainment. Dalla lives in Las Vegas.