The precise scope of permissible sports betting options will be established through legislation and regulations in each state. In order to implement sports betting, each state should consider important regulatory
and policy issues relating to sports betting, such as:
The scope of licensing for vendors
Auditing, accounting and reporting requirements
Prevention of money laundering and fraud
Appropriate security protections and safeguards for patrons
Setting the tax rate
Responsible-gaming procedures to detect and minimize problem gambling
Effective measures to prevent underage gaming
Confidentiality of patron information
Effective measures to restrict online sports betting to patrons located within the state
The regulatory framework must be comprehensive and designed to ensure and foster public confidence and trust in the integrity of sports betting operations. In this regard, the sports betting platform must operate
with complete reliability, security and integrity, ensuring that all patrons can place their bets, have unfettered access to betting options and all relevant betting information, and securely collect their winnings in accordance with the prescribed rules and
regulations. Moreover, there should be procedures for dealing with customer service requests and concerns in a timely manner.
Each state must initially determine which state agency will have regulatory oversight over the implementation and operation of sports betting. In addition, the states will have to decide how much authority should
be delegated to the state agencies entrusted with regulatory oversight over sports betting. At a minimum, these designated state agencies must be granted broad regulatory responsibilities and oversight to ensure that sports betting operations are conducted
in a transparent, efficient and effective manner.
In order to accomplish this objective, there must be a comprehensive licensing system to ensure that all vendors participating in sports betting operations are beyond reproach. There must be procedures governing
the investigation and licensing of the potential vendors. The vendors must be required to affirmatively establish their suitability for participating in authorized sports betting, by demonstrating their good character, honesty and integrity, financial stability,
integrity and responsibility and business ability by clear and convincing evidence.
Each state will need to determine how to secure the services of appropriate vendors that fulfill the above suitability requirements. The state should consider whether it is necessary to issue a Request for Proposals
seeking qualified vendors, or whether the licensed casinos or lottery service providers already operating in the state are able to perform the required services without a need for further solicitations.
Each state will also need to determine the authorized locations for sports betting. For example:
Should sports betting be limited to the physical confines of the licensed casino or lottery establishments, or will other locations in the state be authorized to conduct sports betting operations?
Should online/mobile sports betting operations should be permissible?
Finally, the states will need to determine the sports betting options that will be made available to patrons, including designations of sporting events and the types of wagers to be permitted. Sports betting may
be limited to the actual results of the sporting event or can be expanded to include in-game betting, allowing for a multitude of wagers on a variety of outcomes.
The Spectrum Gaming Sports Group provides a full suite of services for both public- and private-sector clients, including: