"Considering the fact that so many state governments - probably between 40 and 50 - don't consider it immoral, I don't think that anyone should. It may be a little immoral because in reality it is a tax on the poor; the lotteries. But having said that, it's now a matter of national policy. Gambling is good."

No, that high profile quote is not attributable to a member of the US Congress, a state governor nor other public official. Most people had no clue who said it until it was published on December 11, 2009 in a Sports Illustrated interview that writer, Ian Thomsen, had with National Basketball Association (NBA) Commissioner, David Stern. In it, Stern reveals that his stance on legalised sports betting has softened.

But having been the NBA's face for the past 25 years, Stern has no less been a shrewd businessman. Moreover, as a studied attorney, he knows the meaning of precedent and its value in proving one's case.

As such, the prevailing precedent Stern created was his steadfast endorsement of the prohibition of legalised sports betting. And therefore, as he has now seemingly opened Pandora's Box, if but a crack, his juxtaposition may not be greeted with such warm and fuzzy feelings by the commissioners of the other professional sports leagues as well as the National Collegiate Athletic Association (NCAA).

For it was in July 2009, when the NBA joined suit with the National Football League (NFL), Major League Baseball (MLB), the National Hockey League (NHL) and the NCAA in successfully defeating the state of Delaware in its attempt to legalise single game sports betting in its state.

The case in Delaware was based upon the legal theory that the 1992 federal law, known as the Professional and Amateur Sports Protection Act (PASPA) was not applicable to it. In three court appeals, the last requested before the full 12-judge panel of the US 3^rd Circuit Court of Appeals, and later denied, found that Delaware was not entitled to offer sports betting a la Las Vegas style sportsbooks sports betting.

So, Delaware had to settle for NFL only 3-game parlay style betting, which links together two or more individual wagers, but is dependent on all of those wagers winning together, in order for the gambler to profit. In addition, all sports bets must be waged solely at Delaware's race tracks, Dover Downs and Delaware Park. Aside from a hit that the NFL took, however, the other leagues prevailed in winning their case.

Back in 2007, Commissioner Stern agreed to hold the NBA's 2007 All Star Game in Las Vegas, NV, which remains the only state in the Union which allows single bets to be taken at sportsbooks for every league in professional and college sports and for every team. The only exceptions are the NBA's Sacramento Kings and the Boston Celtics along with the teams they are playing against on any given day. And such limitations are only with respect to specific casino properties.

The reason for this is that the Palms Hotel and Casino is owned by Joe and Gavin Maloof, who also own the Kings and previously owned the WNBA's Sacramento Monarchs. The other exception is Harrah's Entertainment, Inc., which owns a minority interest in the Boston Celtics. As Harrah's own numerous Las Vegas casino hotels, no sports bets may be taken at those Harrah casinos which have sportsbooks, on Celtics games or their respective opponents, as mandated by the NBA. Prior to 2008, the Palms Casino was not permitted to have sports betting on any NBA teams, but the NBA Board of Governors ruled to allow the Palms to join the rest of the Strip properties, doing so in October 2008.

Fast forward to 2009 and Stern now says: "Las Vegas is not evil. Las Vegas is a vacation destination resort and they have sports gambling." He apparently has come a long way from the 2007 All Star Game when he was adamant about blocking any potential ownership opportunities for his league in Las Vegas.

The Tim Donaghy referee scandal, also in 2007, put a crimp in Stern's possible growing interest in a potential marriage with games of chance. At that time, Stern ordered the drafting of new policies with respect to NBA referees' off-season limit on gambling at legalised casinos. It is now permissible. However, sports betting is off-limits any time of the year. Ironically, Tim Donaghy's alleged gambling addiction started in legal gambling casinos, now endorsed for NBA referees by David Stern himself.

And now it makes even more sense as to why Stern would insist that Tim Donaghy was a "rogue" or lone referee with regard to passing on inside information to illegal bookmakers and organized crime syndicates. Yet, both the FBI and the NBA's own internal investigation found that any of Donaghy's malfeasances did not alter game outcomes. Still, Donaghy was convicted and served 15 months prison time, including a fine of $500,000.00 and $30,000.00 in required restitution to the NBA.

If anything, one must agree that David Stern is a master at playing both sides of the fence and therefore may not be as inconsistent as many have criticised him for being since the Sports Illustrated article broke.

Is he a hypocrite or merely an evolved businessman wanting to cash in his chips, so to speak?

It is estimated that in the US alone, nationalised legal sports betting income taxes and sin taxes could generate over $40 billion over 10 years. And that does not include the take that the NBA would stand to gain from ancillary revenue streams.

With the United Kingdom, Australia, other European entities as well as China in the sports betting business, many in the US Congress, for example, believe legalised sports betting and online gaming would but eliminate illegal off-shore gambling and would be a win-win both for the government and private enterprise, while removing the organised crime quotient.

But whether such comes to pass in the near future remains to be seen, although cash-strapped states remain hopeful.

Yet, in this economy it is anyone's bet.

Text by: Diane M. Grassi

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