THE MORAL AND ECONOMICAL FACTORS THAT IMPACT THE LIKELIHOOD OF A STATE LEGALIZING SPORTS GAMBLING: AN INDEPTH STUDY OF THE EFFECT OF NATIVE AMERICAN CASINOS AND STATE DEFICITS

Abstract

Sports betting was legalized in 2017 by the SCOTUS and has generated much conversation amongst state governing bodies as to whether or not they should pass legislation. Twenty states have officially legalized, and the others either have not budged or are skeptical about the net gain legalizing will have on their citizens because of the potential social concerns attached with betting syndromes. This paper examines different moral and economic factors that cause states to proceed in legalizing sports gambling or to pass on the revenue opportunity. I hypothesize that there is a decreased probability for states to legalize sports gambling if there is a Native American casino presence or if there is a shrinking state deficit. Likewise, this study hopes to show that states without a Native American casino presence or with an increasing deficit will lead to a significant increase in the probability for that state to legalize sports betting. Using “The Legal Sports Report,” “The National Conference of State Legislature,” “500 Nations,” and “The United States Government Spending” databases, I created my own datasheets using ten years of data on state deficits and Native American casinos and two years of data on sports gambling because the first state to legalize sports gambling happened in the spring of 2018. Using three probit regressions and controlling for religious and economic effects, my study provides convincing evidence that tribal casinos play a significant role in disincentivizing states to legalize, but growing state deficits do not play a significant role in decreasing the likelihood of legalization. Future policies are suggested from a religious point of view, wishing for future lawmakers to protect this important stream of revenue for the tribes, granted the abuse issues on reservation land are seriously addressed.