Background and Legality of Gambling
As Super Bowl LIX approaches, the stakes are high—not just on the field, but in the millions of bets being placed on the game—from proposition bets to squares, sports betting in America is at a record high. For many, the Super Bowl is less about touchdowns and more about the betting action off the field.
About one in four American adults will bet on this year’s Super Bowl matchup between the Philadelphia Eagles and Kansas City Chiefs, a record-breaking statistic. That’s nearly 68 million people and a 35% increase in betting participation by comparison to last year’s big game. Some of these bets will be made through traditional “bookies,” according to the American Gambling Association. However, Americans continue to migrate to lawful, regulated platforms in the wake of relatively recent developments in the gaming industry.
The landscape of sports betting in the United States has evolved dramatically in recent years, largely catalyzed by the 2018 Supreme Court decision striking down the Professional and Amateur Sports Protection Act (PASPA). The PASPA had previously limited sports gambling to one state, Nevada. The Supreme Court’s ruling left each state free to regulate sports gambling on its own and essentially transformed how Americans consume sports content. Since then, more than $300 billion has been wagered by Americans, and gambling is now legal in 38 states and Washington, D.C., with more states expected to follow suit.
A Brief History: From Novelty to Mainstream
For obvious reasons and others more nuanced, the Super Bowl holds a unique legacy in the history of sports gambling. The first-ever prop bet was offered for the January 26, 1986, Super Bowl XX between the Chicago Bears and the New England Patriots. The game was expected to be a blowout, which reduced gambling interest on traditional spread and money line offerings. Caesars Sportsbook, seeking to incentivize casual bettors and fans into betting on the game, decided to offer a novel “yes or no” wager on an interesting question: Will William “The Fridge” Perry score a touchdown?” Spoiler alert, legendary HOF running back Walter Payton did not score a TD, but defensive tackle Refrigerator Perry did (at 20:1 odds). Vegas books took a short-term loss as this legendary moment signaled the beginning of the modern prop bet phenomenon. Today, such novelty bets are a staple of the industry, drawing casual fans into the excitement of the game.
Big Business of Sports Betting
The business of sports betting extends far beyond traditional wagers on game outcomes and is easily accessible. Modern sportsbooks like DraftKings and FanDuel offer hundreds of prop bets for events like the Super Bowl, allowing fans to bet on everything from the length of the national anthem to the color of the Gatorade shower, all using exciting mobile apps. The diversification and ease-of-access make betting more accessible and entertaining for a wide audience, contributing to industry growth.
The financial stakes are enormous. Sports betting companies are among the most aggressive advertisers in the sports world. DraftKings, FanDuel, and BetMGM, the three largest sportsbooks in the US, bought more linear TV ads from August 15, 2024, through the first three weeks of the NFL season this year than in the same period the previous season. DraftKings spent an estimated $36.4 million (up 22% compared to the same period last year); FanDuel spent an estimated $27.1 million, (up 14%); and BetMGM spent an estimated $11.5 million (nearly what BetMGM spent over the same time period in 2023).
Whether you tune in for a pre-game television broadcast or attend a game in person, it is impossible to miss all the attention being paid to the gaming industry consumer.
NFL Gambling Policies: Safeguarding Integrity
The NFL, like other professional sports leagues, has implemented robust policies to protect the integrity of the game amid the rise of legal sports betting. For example, every player contract includes a standard “Integrity of the Game” clause, and all players are required to attend in-person gambling policy education and training, emphasizing the league’s commitment to transparency and fairness.
Last February, the NFL sent a memo to all League players and personnel reminding them that they “may not enter a sportsbook for any reason, at any time (including to eat or drink), while in Las Vegas for a Super Bowl.” The NFL even recruited Patriots and Buccaneers legend, Tom Brady, to help by filming a video warning players about the dangers of gambling.
Violations of these policies have led to significant consequences. For instance, in one high-profile example, former Atlanta Falcons standout wide receiver Calvin Ridley was suspended for the entire 2022 NFL season after betting on games. In 2023, several other players received suspensions of varying lengths of time. Such incidents, which can be career-ending events for players, underscore the league’s zero-tolerance approach and the importance of ongoing education and monitoring efforts.
The NFL’s security team regularly investigates potential violations to ensure compliance and to maintain the integrity of the sport. NFL player restrictions boil down to six main rules, and evidently, the NFL’s measures are working as we are seeing fewer and fewer violations.
However, the league distinguishes between its treatment of players and other personnel. For players, the rules primarily prohibit betting on NFL games, at NFL facilities, and during the NFL season. Meanwhile, league personnel face far stricter guidelines: they are barred from betting on all sports and the prohibitions are not limited to the NFL season. As a result, the NFL has disciplined far more team personnel for gambling violations than players, though these disciplinary actions do not garner the same headlines and media attention.
BFV Experience Handling These Investigations
The attorneys at BFV have broad experience helping clients navigate these and other types of investigations involving the NFL, the NFL security team, and other professional sports leagues.
The Road Ahead for Sports Betting and the Super Bowl
The scale of sports betting continues to shatter previous records, both in terms of participation and revenue. With legal gambling making up a significant portion of this growth, the industry is poised to remain a central part of the fan experience.
The rapid evolution of sports betting presents exciting opportunities and unique challenges that transcend professional sports organizations. Whether you’re a casual bettor, an industry insider, or simply a fan, it’s clear that gambling is now a permanent fixture in the world of American professional sports—one that will continue to shape the narrative of events like the Super Bowl for years to come.