Former New Jersey Governor Chris Christie, constitutional lawyer Ted Olson, and lobbyist Joe Brennan Jr. discuss the journey from fantasy sports to legalized sports betting in New Jersey. Christie shares insights on the critical role his state played in this shift, while Olson reveals the legal challenges that culminated in a Supreme Court victory. Former Senator Ray Lesniak adds his perspective on advocacy, and Professor Allison LaCroix contextualizes the legal complexities involved. Together, they unravel the intertwining of sports, law, and state rights.
The evolution from fantasy sports to legalized betting in New Jersey was driven by grassroots support and strategic lobbying efforts.
The Supreme Court's 2018 ruling effectively dismantled PASPA, enabling rapid growth in the legal sports betting market across the U.S.
Deep dives
The Rise of Fantasy Sports
Fantasy sports emerged as a popular social activity among friends, driven by a game invented by Dan Okren in 1979. Players built imaginary teams from real-life athletes, earning points based on the athletes' performance in actual games. This created a new way for fans to engage with sports over the course of a season, fostering camaraderie and competition without the primary focus being monetary gains. Eventually, the introduction of daily fantasy sports by companies like FanDuel transformed this pastime, making it more accessible and appealing to a broader audience.
Legalization Challenges and Strategies
As fantasy sports gained traction, questions arose about their legality and how they relate to gambling. Several state attorneys general deemed daily fantasy sports akin to gambling, putting pressure on companies to cease operations. Jeremy Kudon, a lobbyist for DraftKings and FanDuel, sought to differentiate fantasy sports from traditional gambling by emphasizing the skill involved in gameplay. By successfully getting various states to legalize fantasy sports, he paved the way for discussions about broader gambling legislation.
The Role of Legislative Battles
New Jersey became a focal point in the fight for sports betting legalization, with a significant push from individuals like Governor Chris Christie and State Senator Ray Lesniak. After a local politician's arrest for illegal betting highlighted the absurdity of existing laws, voters overwhelmingly supported a referendum to legalize sports betting. This grassroots support, combined with strategic lobbying efforts, prompted lawmakers to challenge federal restrictions on sports gambling. Ultimately, these efforts resulted in the unconstitutionality ruling of the Professional and Amateur Sports Protection Act (PASPA) by the Supreme Court.
The Explosion of the Gambling Industry
The Supreme Court's ruling in 2018 opened the floodgates for states to legalize sports betting, leading to a rapid expansion of the gambling industry across the United States. Companies like DraftKings and FanDuel, which had previously operated under the banner of fantasy sports, adjusted their strategies to take advantage of this newfound legal market. This shift not only transformed their business models but also set the stage for a massive cultural shift in how Americans engage with sports and gambling. As these companies solidified their positions in the market, the intersection of sports and gambling became integral to fan experiences, changing the landscape of both industries.
How did we get from fantasy sports to legalized sports betting? The path is convoluted, but most of it winds through New Jersey. Michael Lewis speaks with former governor Chris Christie, among other Jersey politicians, as well as lobbyists for the gaming industry. Plus we hear from Ted Olson, the lawyer who kept bringing the Garden State’s constitutional challenge until it finally reached the Supreme Court — and hit a jackpot.