Sports Event Contracts Violate Federal Law • Sports Event Contracts violate the Federal Wire Act. Under the Wire Act, no one may “knowingly use a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers . . . on any sporting event or contest[.]” 18 U.S.C. § 1084(a). U.S. Courts of Appeals and the DOJ have interpreted the Wire Act to prohibit interstate online sports betting. N.H. Lottery Commission v. Rosen, 986 F.3d 38, 61–62 (1st Cir. 2021). • Sports Event Contracts violate IGRA IGRA requires all Class III gaming activity conducted on Tribal lands to be either (1) authorized by tribal ordinance or resolution, (2) located in a state where such gaming is permitted, or (3) conducted pursuant to an IGRA compact. 25 U.S.C. § 2710(d)(1). Sports betting—which includes Sports Event Contracts—is considered Class III gaming under IGRA. 25 C.F.R. § 502.4 Sports Event Contracts have no geographical limit, so they necessarily occur on Tribal lands without meeting the requirements of IGRA.
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Sports Event Contracts Violate State Law • States retain the police power to regulate gaming. Ah Sin v. Wittman , 198 U.S. 500, 505-06 (1905). • At least 38 states and the District of Columbia allow regulated sports betting. • Approximately 20 states prohibit online sports betting. • Nearly a dozen states prohibit all forms of sports betting. • Sports Event Contracts constitute sports betting and therefore directly violate state laws regulating or prohibiting sports betting.
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