A big betting buzz rippled across the United States on Tuesday evening when the West Virginia Lottery, which oversees sports betting in that state, announced it would allow political betting on the 2020 presidential election.
However, the buzz quickly silenced, as election betting odds came down within a half-hour of going up on FanDuel Sportsbook’s online/mobile app in West Virginia. Covers reached out to FanDuel Sportsbook for comment Tuesday night, and the company issued the following statement:
“While the markets were approved, the West Virginia Lottery has asked FanDuel to refrain from offering the markets until they have time to fully work through the implications of this new market offering."
Prior to that request, FanDuel Sportsbook announced in a news release the first-of-its-kind offering at any legal, regulated U.S. sportsbook. FanDuel had multiple election-related markets live online for a brief period, including on the presidential election. Donald Trump was the -110 favorite, Joe Biden the +125 second choice, followed by long shots New York Gov. Andrew Cuomo (22/1), Sen. Bernie Sanders (35/1), Hillary Clinton (50/1) and Michelle Obama (100/1).
FanDuel also had political odds for which party would win the presidency and on who would win the Democratic nomination, along with state-by-state winning party markets for the presidential election.
There could be a couple of elements at play in pulling political betting markets down.
First, as noted by sports law expert John Holden, an assistant professor at Oklahoma State University, political betting might run afoul of a 2012 ruling by the Commodity Futures Trading Commission. Holden told Covers that FanDuel or other books might run into challenges by virtue of the CFTC’s interpretation that found wagering on elections is a form of gaming contrary to public policy, under a provision included in the Dodd-Frank Act.
Further, Holden pointed out approval could run counter to a West Virginia state statute that reads: “It shall be unlawful to bet or wager money or other thing of value on any election held in this state.”
However, Shawn Fluharty, a legislator in West Virginia’s House of Delegates, told Covers that the sports betting legislation’s language was crafted for this purpose, among others. The sports betting bill passed into law in March 2018.
“All I can say now is that when we approved the legislation initially, we intended on allowing this type of betting market,” Fluharty said. “It’s inevitable and already offered in Europe. The only question was whether we would do it before New Jersey.”
West Virginia succeeded in that, if only for a few minutes Tuesday night. Whether it returns and holds up long term could be subject to review of the aforementioned CFTC ruling and the state statute.
Nevada oddsmakers have long been intrigued by political betting, positing that handle for a presidential election would dwarf even Super Bowl handle. However, along with perhaps the conflict with the CFTC ruling, there’s a legislative hurdle to clear, too, according to Nevada Gaming Control Board senior analyst Mike Lawton.
“In order for licensed sportsbooks in Nevada to accept wagers on elections, the State of Nevada’s Legislature would be required to convene and change the law,” Lawton said, noting a longtime statute in place that prohibits betting on elections.
ODDS TO WIN 2020 US PRESIDENTIAL ELECTION
| Outright Winner of the US Election | Odds (as of April 8) |
|---|---|
| Donald Trump | -120 |
| Joe Biden | +120 |
| Andrew Cuomo | +2,800 |
| Mike Pence | +3,000 |
| Hillary Clinton | +4,000 |
| Nikki Haley | +8,000 |
| Michelle Obama | +10,000 |
| Winning Party | Odds (as of April 8) |
| Republican | -120 |
| Democrat | EVEN |
| Independent | +8,000 |
Patrick Everson is a Las Vegas-based senior writer for Covers. Follow him on Twitter: @Covers_Vegas.
