Now's the Time to Get Ready for Sports Betting, Attys Say
An imminent U.S. Supreme Court decision could open the door to sports betting in many states, but companies looking to jump into the space should start preparing and start looking for partnerships with existing casinos now, attorneys say.
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The issue is that many brick-and-mortar casinos do not have the immediate capabilities to operate a sportsbook, while the sportsbooks and mobile platform providers would need a license, according to gambling attorney Dennis M.P. Ehling of Blank Rome LLP.
“So there is a lot of discussion now about potential partnerships, things that may or may not come to fruition, but people are spending a lot of time talking and exploring what might work depending on how they see things,” Ehling said.
Of course, there is still no way to know for sure how the Supreme Court is going to rule, meaning a contract could be for naught.
Ehling said it is a good idea for the contracts to provide options that would kick in only if a decision makes sports betting possible, such as a right of first refusal. It is also important for there to be some kind of upfront value to the deal in case things do not pan out in the high court.
“No one is really looking to put a six-figure chunk down on a bet,” Ehling said. “Although these are wagering companies, they are not willing to make that sort of bet,” so they’re looking for ways to make value happen up front in any contracts.
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"Now's the Time to Get Ready for Sports Betting, Attys Say," by Zachary Zagger was published in Law360 on March 15, 2018.