December 12, 2017

U.S. Senate Committee on
Commerce, Science, and Transportation
512 Dirksen Senate Building
Washington DC, 20510

U.S. Senate Committee on the Judiciary
224 Dirksen Senate Office Building
Washington, D.C. 20510

U.S. House Committee on the Judiciary
2138 Rayburn House Office Building
Washington, DC 20515

U.S. House Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, D.C. 20515

Dear Member,

We write to encourage Congress to hold hearings as soon as possible on the Professional and Amateur Sports Protection Act (PASPA), which was enacted in 1992 and prohibits most states from legalizing sports betting. This law is outdated and deeply flawed. It is now time for Congress to open up a national discussion on how best to modernize the law regarding sports betting.

The market for sports betting in the United States has been largely driven underground thanks to PASPA. Ordinary sports bettors have been turned into potential criminals, while this enormous black market allows real criminals to flourish, making offenses like money laundering, underage gambling, and attempts to corrupt athletes or officials more not less likely. In countries with legalized sports betting, like Australia and the United Kingdom, law enforcement and the gaming industry have worked together to interdict illegal betting operations. In those countries, the market operates transparently and the government receives revenue through taxes on sports betting. In the U.S., that potential revenue is currently being driven offshore.

PASPA represents a clear example of federal government overreach. Scarce state and federal taxpayer dollars are being deployed to enforce this prohibition on sports betting, which rarely leads to serious penalties. It is no wonder that law enforcement leaders across the country are voicing their support for a legal, transparent sports betting market that would provide certainty and strong consumer protections.

On December 4, 2017, the Supreme Court heard New Jersey’s challenge to PASPA, Christie v. NCAA. During oral arguments, most justices expressed skepticism over the Act’s infringement on the Tenth Amendment, which reserves for the states and the people the powers not delegated to Congress. As Justice Anthony Kennedy remarked, “It leaves in place a state law that the state does not want, so the citizens of the State of New Jersey are bound to obey a law that the state doesn't want but that the federal government compels the state to have. That seems commandeering.” Justice Alito also expressed his concerns, stating, “Congress could have prohibited sports gambling itself. So what federal policy is served by this statute that would not have been served by the former?”

We hope you will quickly schedule hearings on the outdated Professional and Amateur Sports Protection Act in order to enhance Americans’ understanding of this issue and help lay the groundwork for much needed reform and modernization of this law.

Thank you for your consideration.

Sincerely,

Thomas A. Schatz
President
Council for Citizens Against Government Waste

Daniel Schneider
Executive Director
American Conservative Union

Michelle Minton
Senior Fellow
Competitive Enterprise Institute

Matthew Kandrach
President
Consumer Action for a Strong Economy

Julian Morris
Vice President of Research
Reason Foundation

Click for PDF