Shocking Discovery: US Justice Dept, NFL Say Sports Betting is Skill-Based

Submitted by Gilbert Horowitz on

Written by :

Gilbert Horowitz

Published on :

ESPN has uncovered court documents revealing opinions by both the U.S. Justice Department and the NFL that sports betting is more a game of skill than chance, an important legal distinction that could shape the expanded legalization of wagering on American sports.  Skill-based contests are also more likely to be permitted under U.S. law.

The statements by legal counsel of both entities were made in 2013, according to ESPN. That same year, the NFL sued New Jersey in an effort to prevent the state from offering legalized sports betting.  Daily Fantasy Sports were also in their developmental stage in 2013.  Two years later nearly half the NFL teams have partnered with one of two behemoth Daily Fantasy Sports sites, Draftkings and FanDuel.   

In 2013, U.S. Attorney General Loretta Lynch – then the U.S. Attorney for the Eastern District of New York - wrote in United States v. DiCristina:

"Sports betting ... involves 'substantial [not slight] skill.' Sports bettors can employ superior knowledge of the games, teams, and players in order to exploit odds that do not reflect the true likelihoods of the possible outcomes."

Lynch pointed to prominent Las Vegas sports bettor and businessman Billy Walters as an example of sports betting being skill. Lynch also explained how certain sports bettors move betting lines, a skillful technique analogous to bluffing in poker:

"While a sports bettor cannot [legally] influence the outcome of a game, sports bettors can and do influence the 'betting line' or 'point spread' in order to improve their odds of making a successful bet," she wrote. "Specifically, a gambler intending to make a large bet on one team may first place one or more smaller, strategic bets on the other team to move the betting line and make it more favorable for the ultimate intended bet."

- Gilbert Horowitz, Gambling911.com

Related Content

Jonathan David

First, Anytime Goal Scorer Prop Bet Payout Odds - Jonathan David, Cyle Larin, Alphonso Davies

Canada vs. South Africa is knockout soccer now. Canada is heavily favored to win here at -350 while South Africa is listed at +260, paying US$260 for every US$100 bet.
First, Anytime Goal Scorer Prop Bet Payout Odds - Jordan v Argentina: Julian Alvarez, Lautaro Martinez, Jose Manuel Lopez

First, Anytime Goal Scorer Prop Bet Payout Odds - Jordan v Argentina: Julian Alvarez, Lautaro Martinez, Jose Manuel Lopez

Jordan pays US$1700 for every US$100 bet if they are to beat Argentina, which is the -700 favorite for this 10 pm EDT match.
First, Anytime Goal Scorer Prop Bet Payout Odds - Congo vs. Uzbekistan:  Yoane Wissa, Cedric Bakambu, Eldor Shomurodov

First, Anytime Goal Scorer Prop Bet Payout Odds - Congo vs. Uzbekistan: Yoane Wissa, Cedric Bakambu, Eldor Shomurodov

DR Congo has 1 point and likely needs a win to have a realistic shot at advancing as a third-place team. Uzbekistan has 0 points and must win to stay alive. A draw probably eliminates Uzbekistan and likely does very little for DR Congo.
First, Anytime Goal Scorer Prop Bet Payout Odds - Colombia v Portugal: Bruno Fernandes, Cucho Hernandez, Jhon Cordoba

First, Anytime Goal Scorer Prop Bet Payout Odds - Colombia v Portugal: Bruno Fernandes, Cucho Hernandez, Jhon Cordoba

Bruno Fernandes, Cucho Hernandez and Jhon Cordoba each pay US$900 for every US$100 bet to score the first goal in this critical match between Portugal and Colombia Saturday.