so we had some pretty good news this week from the US the US federal
government overturned a law that was implemented 2025 years ago
banning sports betting so I thought I'd do a little video to give you my view on
how that's going to influence the industry please like and comment on the
video below that will allow me to produce better quality videos and more
of them in the future if you're interested in learning to trade
successfully in sports then why not visit the BET angel' Academy where we
have more detailed videos so yeah when the Federal Court came out and
overturned the ruling from many years ago as unconstitutional then that was
the big news that occurred last week and I think it's worthy of a video because
as you know if you watch my channel I've been to the US and back again repeatedly
over a large number of years not thinking that I could actually influence
the outcome of that sort of process but more to be an advocate for exchanges and
a positive use of exchanges and also you know I've always believed that
especially in this modern global world where the Internet it covers everything
that it's better to bring on board stuff and legislate correctly for it rather
than just pretend that it doesn't exist or to push it out over the borders now
you may actually remember I did a video where I actually stood at the Mexican
border and talked about this it was very short video and it's probably worth
reprising and putting into this video
so I'm currently stood here at the Mexican border I'm in San Diego the US
is on this side of the border Mexico is over there if I go over here you can see
the border across there and over on the right here up a bit I think there we go
you can see the border guard on one side we have drugs prostitution illegal
gambling and on the other side we have Mexico and one of the anomalies of this
part of the world is that I'm not allowed to use Betfair on this side of
the border but if I go over the border there I can use and you know it's one of
many anomalies but it's just a bit curious to be stood here knowing that if
I try to log in here I would get rejected and yet if I walk across the
border at the border crossing which is over here then I would be able to do it
so yeah strange anomaly but one of those things I guess so that was filmed after
I did a trip to Los Angeles to visit bet fair's headquarters in California and
they have a or they bought out a company called TVG a long time ago there's a
long history behind that and if you're interested in learning more about TVG
and what I discovered when I went there visit the blog post which I'll link in
the video because that's actually describes in detail my thoughts at that
particular moment in time but yeah you know I also you've probably seen the
video on me in San Francisco where I was talking to technology firms venture
capitalists and all of those sort of companies to just stir up interest over
there and see if anything could come out of it I think the big thing that we will
find now is that when we look at the industry basically it's given it the
green light to proceed so it's important to get it into perspective just because
at a federal level they've decided that the law was unconstitutional it doesn't
mean that suddenly is all going to blow wide open and they'll just be hundreds
and billions of pounds worth of all dollars I should say you know from
liquidity footing into the market it's not going to happen like that
when you look at the way that law is made in the US and I've looked at the
lobbying side and Congress and all of those things a federal law applies
across the entire country so they set like a broad law and then that gets
passed down to the states so when you look at the individual states it's
pretty much like their own individual country they can set their own sales
rates tax they can set business taxes and you know I'm gonna paraphrase and
summarize it but basically that a federal law is very different from a
state's law so what will have to happen from this point onwards is they'll have
to go around individual states deciding whether they want to introduce a bill or
not so it's not as simple as just passing a law and then everything
changes it basically gives the green light for something to happen it doesn't
mean that something is going to happen or even very quickly and in previous
videos I've made this observation that the East Coast is very commercial the
West Coast very liberal and then you've got mid-america which is very different
as well so I think there's a commercial imperative on the East Coast to make
things happen people on the west coast feel that they have the right to have
that and in mid-america I think that you'll be lucky to see any adoption of
gambling happen very very quickly now of course I could be wrong but if you
actually look I found a really interesting graphic on the state at play
effectively for betting legislation which I'll put up on this video and I'll
talk over it now but basically it highlights where there
are builds in progress we're betting is legal we're betting is illegal or why
there is no bill in progress or no discussion taking place and that pretty
much echoes my view that I've had for many years in terms of the state of
legislation in the US so yeah the federal bill or the
overturning the the law gives the right to proceed but whether people proceed or
not it's going to occur on a state-by-state basis so there are lots
of complications I remember I met the legal counsel at TVG and he showed me
the legislation for California now is about this thick with about 400 million
cabinets and exclusions and inclusions and you know it was very very very very
very complicated and you got to multiply that by
50 states so it'll be interesting to see where things progress but obviously it's
good news in terms of there is a period of progression that's going on there
and it's interesting to have that debate taking place in people discussing it in
fact I saw an interview where they they actually sort of said also our people
are going to quit their jobs and become professional gamblers I thought that was
quite quite hilarious I do believe that it makes sense you know having different
laws over different borders it makes no sense in the internet age so it's better
to bring those things on board legislate it control it effectively and obviously
you'll get tax revenue from it how that develops will be interesting to see
because some of the tax could be punitive and my gut feel I have to be
honest here is that probably it's the sports books that will step in first
because they're easy models to translate and the revenue that they generate could
be shared and create decent tax revenue and I think that the what will happen in
terms of exchanges is they'll face the same battle that we faced in Europe 20
years ago so I think a lot of bookmakers will probably try the easiest route in
first but however strategically I think that's
an error because the exchange is such a great model it's new it's refreshing and
it could generate enormous amounts of revenue if it's adopted in the correct
format I think exchanges and sports book can co-exist together although obviously
the exchange is a much better model and much fairer for your average punter so I
think if anybody has the guts to really push the exchange model I think it's
there for the taking in the u.s. however you know the change in or the the green
lights for people to bet on sports has been given and now we have to turn our
attention to how that's going to manifest itself and who decides to take
it up most aggressively so I think that it's obviously a very very positive move
and is it going to change things overnight no but will it change things
in the long term yes and our role should be now to encourage change in the
absolutely positive direction that we all know and love which is exchanges
where possible but yeah I'll be keeping a close eye on it I'll be back over to
the US again this year to continue those discussions and it'll be interesting to
see if we can finally get a bit of momentum up in what is potentially an
absolutely huge sports betting market
you
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