*This article was originally published prior to author David E. Aron joining Lowenstein Sandler.
Murphy v. NCAA kicked off a new era in sports betting in the United States, with many states authorizing sports betting in various forms, seemingly without regard to potential preemption by the Commodity Exchange Act (“CEA”) and related Commodity Futures Trading Commission (“CFTC” or “Commission”) regulations. As of December 31, 2020, eighteen states and the District of Columbia have officially legalized sports betting. This group includes Nevada, Delaware, Montana, and Oregon, all of which already had some form of sports betting prior to the ruling. These state markets continue to grow, increasing in 2020 by sixty-five percent and sixty-nine percent year over year in revenue and in handle (money in wagers), respectively. In 2020, the state-legalized sports gaming handle totaled $21.5 billion, while revenue totaled $1.5 billion, “despite widespread sportsbook shutdowns and an abbreviated calendar of major sporting events.”
Additionally, some gambling enterprises are expanding beyond sports into other event betting. In 2019, the Division of Gaming Enforcement in New Jersey allowed licensed sportsbook operators to accept bets on the winners of Academy Award categories, including Best Picture and Best Supporting Actor. In 2020, the Indiana Gaming Commission followed suit.
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