[Congressional Record Volume 146, Number 98 (Tuesday, July 25, 2000)]
[Senate]
[Pages S7526-S7528]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ILLEGAL WAGERING ON COLLEGE SPORTS
Mr. BRYAN. Mr. President, earlier today, the Senator from Kansas, Mr.
Brownback, took to the floor and argued on behalf of a piece of
legislation that would affect only my State and affect it in a very
profound and negative way. The ostensible purpose of the legislation I
think all of us can agree upon. I wish to put the discussion in context
as I see it. We are talking about the illegal wagering on college
sports, particularly wagering by underage college students, including
student athletes. I think there is no disagreement that there is a
serious problem and one that we recognize ought to be addressed in a
very serious way.
The National Collegiate Athletic Association (NCAA) testified before
the Commerce Committee, as they did before the National Gambling Impact
Study Commission (NGISC), that there are illegal student bookies on
virtually every college campus in the country, including some
individuals with links to organized crime. I do not disagree with that
assessment. The matter is so serious that some students have actually
been threatened with bodily harm to collect gambling debts owed to
illegal student bookies. I do not disagree with that assessment.
The NCAA has known at least since the three-part investigative series
published by Sports Illustrated in 1995 that the illegal gambling
problem on America's college campuses was widespread and growing. A
recent University of Michigan survey found that nearly half of all male
student-athletes nationwide--45 percent--gambled illegally on college
and professional sports. A nationwide survey of NCAA Division I male
basketball and football student-athletes conducted for the NCAA by a
University of Cincinnati research team found that over one-fourth
gambled in college sports. Sadly, a small number in each survey gambled
on games in which they played. They were wrong.
Beyond the broader issue of the extent to which student-athletes, and
students generally, gamble on sports illegally, there are the troubling
cases of improper influence being exerted on student-athletes by those
who seek financial gain from placing sports wagers on ``fixed'' games.
This reprehensible conduct has reared its ugly head on occasion since
at least the 1940s, particularly in the context of college basketball.
While the NCAA's recent rhetoric leaves the impression that such
``point-shaving'' or ``fixing'' of games is rampant, we can be thankful
that the record belies the rhetoric. The two recent scandals of this
type (those at Northwestern University and Arizona State University)
took place over five years ago in the mid-1990s. The integrity of
virtually all those who compete in college athletics is verified by the
fact that there were a handful of such scandals in the 1990s out of the
thousands of games played. While not a single sports bribery scandal
should be tolerated, we need to know why they occur and by what means.
The record is clear for those student-athletes who have violated the
trust of their teammates and school by engaging in illegal sports
wagering. As a result of their illegal wagering, they put themselves in
debt to the point where they committed heinous acts of betrayal to pay
off those debts to illegal bookies.
If merely passing laws prohibiting unregulated sports gambling were
enough to stop it, the practice would not be so widespread today.
Sports gambling has been illegal for decades in almost every state, and
Congress acted in 1992 to prevent states from adding sports-based games
to their state lotteries. The same statute, the Professional and
Amateur Sports Protection Act, also prohibits persons from engaging in
sports-based wagering schemes, contests, and sweepstakes.
Similarly, wagering on sports of any kind, college or professional,
is already a violation of NCAA bylaw 10.3. A review of the NCAA's
publicly available computer database of rules infractions cases
indicates that, as of 1998 (the last year for which cases are posted),
enforcement of bylaw 10.3 is infrequent and spotty at best.
The database reveals that the NCAA brought only 23 enforcement
actions against student-athletes from 1996 to 1998, even though the
University of Michigan and University of Cincinnati studies indicate
that thousands of violations occurred. In some of the 23 cases, the
violations centered on such routine practices as students wagering team
jerseys with each other. In the face of organized student bookmaking
operations with links to organized crime handling large sums of cash
wagers, such an enforcement ``strategy'' is at best misplaced.
Against this backdrop of a serious national problem with illegal
sports gambling, the legislation to which I referred, S. 2340, takes
the very peculiar approach of targeting the only place in America where
sports wagering is legal, regulated, policed, taxed, and confined to
adults over age 21--the State of Nevada. Furthermore, the facts are
that legal wagering in Nevada amounts to only about one percent of all
sports gambling nationwide, 99 percent of which is already illegal. The
[[Page S7527]]
NGISC estimated that illegal sports wagering in the United States
ranged from $80 billion to $380 billion annually. In contrast, legal
sports wagering in the State of Nevada last year totaled approximately
$2.5 billion, with roughly a third of that amount bet on college
sporting events.
The central question then, which supporters of the legislation fail
to answer adequately, is how does preventing adult tourists and
conventioneers from placing sports wagers in Nevada affect what happens
on and off college campuses in the other 49 states. Each of the
attempted answers to this central question is completely unpersuasive.
First, the central premise underlying this legislation is that
eliminating the small amount of legal sports wagering in Nevada will
cause newspapers across the country not to publish betting lines or
point spreads, thereby curbing illegal gambling activity. This notion
is further evidenced by the committee report accompanying S. 2340, the
Amateur Sports Integrity Act, which states that ``. . . point spreads
are generated for no other reason than to facilitate betting on college
sports.'' It is important to note that neither the Commerce Committee
nor the NGISC took testimony from newspapers to determine if in fact
they would cease publishing betting lines if sports gambling were made
illegal in Nevada. Similarly, no testimony was taken to determine
whether illegal sports wagering would be reduced even if newspapers
ceased publishing this information. I made the point at the time of the
hearing on S. 2340 that it's not too much to ask that such due
diligence be conducted before a legal industry and its employees are
legislated out of existence
Just recently the Newspaper Association of America broke their
silence and shared their thoughts on this legislative proposal, and,
not surprisingly, they completely refuted the primary argument put
forth by the sponsors of this amendment. I'd like to share with my
colleagues the content of their letter to the House Judiciary
Committee.
This is a letter, dated June 7 of this year, addressed to the
chairman and ranking member of the House Judiciary Committee. Let me
read the operative provisions:
If Congress prohibits gambling on college sports, NAS believes
newspapers will continue to have an interest in publishing point
spreads on college games, since point spreads appear to be useful, if
not valuable, to newspaper readers who have no intention of betting on
games.
That is a pretty clear statement that this association, representing
America's newspapers, believes, notwithstanding any legislative
prohibition, that newspapers in America will continue to publish these
point spreads on games.
The letter goes on to point out:
According to a national Harris Poll survey of 1,024 respondents
conducted during April 7-12, 70 percent of respondents who read or look
at point spreads on college sports do so to obtain information about a
favorite college team and to increase their knowledge about an upcoming
sporting event. Only 11 percent of the respondents said that they read
or look at point spreads on college sports to place a bet with a
bookmaker. NAA believes that publication of point spreads provides
useful information to millions of newspaper readers, of whom 96 percent
are 21 and over (MRI Spring 2000 Study).
Second, pointing the spotlight on published point spreads in
newspapers fails to acknowledge that an individual can obtain point
spreads on college games through many different sources. These sources
include sports talk shows on radio and television, magazines, toll-free
telephone services and the Internet. Illegal bookies on college
campuses and in the general population will continue to set the betting
lines independent of any published point spread. Anyone who is intent
on placing bets on games can and will obtain point spreads, even if
they are not published in the newspaper.
Mr. President, I ask unanimous consent this letter be printed in the
Record.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
Newspaper Association of America,
Vienna, VA, June 7, 2000.
Hon. Henry Hyde,
Chairman,
Hon. John Conyers,
Ranking Member,
Committee on the Judiciary, House of Representatives,
Washington, DC.
Dear Chairman Hyde and Congressman Conyers: The purpose of
this letter is to respond to your request for comment on H.R.
3575, the Student Athlete Protection Act, which prohibits
high school and college sports gambling in all States,
including Nevada, where gambling on college sports is
currently legal.
The Newspaper Association of America (NAA) is a nonprofit
organization representing more than 2,000 newspapers in the
U.S. and Canada. Most NAA members are daily newspapers,
accounting for 87 percent of the U.S. daily circulation.
NAA understands the concern Congress has with respect to
illegal sports gambling on college campuses, including the
existence of illegal bookmaking operations that involve
student-athletes as well as members of the general student
population. Our comments on the proposed legislation are
limited to an issue that has been raised concerning
publication of point spreads on college sporting events, and
whether a prohibition on gambling on college games will
persuade newspapers not to publish point spreads on these
games.
First, like all editorial decisions, the decision on
whether to publish point spreads for college sporting events
is made by each newspaper and the decision to publish or not
publish will vary from newspaper to newspaper. If Congress
prohibits gambling on college sports, NAA believes newspapers
will continue to have an interest in publishing point spreads
on college games, since point spreads appear to be useful, it
not valuable, to newspaper readers who have no intention of
betting on games.
According to a national Harris Poll survey of 1,024
respondents conducted during April 7-12, 70 percent of
respondents who read or look at point spreads on college
sports do so to obtain information about a favorite college
team and to increase their knowledge about an upcoming
sporting event. Only 11 percent of the respondents said that
they read or look at point spreads on college sports to place
a bet with a bookmaker. NAA believes that publication of
point spreads provides useful information to millions of
newspaper readers, of whom 96 percent are 21 and over (MRI
Spring 2000 Study).
Second, pointing the spotlight on published point spreads
in newspapers fails to acknowledge that an individual can
obtain point spreads on college games through many different
sources. These sources include sports talk shows on radio and
television, magazines, toll-free telephone services and the
Internet. Illegal bookies on college campuses and in the
general population will continue to set the betting lines
independent of any published point spread. Anyone who is
intent on placing bets on games can and will obtain point
spreads, even if they are not published in the newspaper.
Finally, NAA applauds the sponsors of the legislation for
resisting the temptation to impinge upon constitutionally
protected freedoms of speech by proposing a prohibition on
the publication or dissemination of point spreads on college
games. Over the years, the Supreme Court consistently has
recognized that a consumer's interest in the free flow of
information ``may be as keen, if not keener by far, than his
interest in the day's most urgent political debate.''
Virginia State Bd Of Pharmacy v. Virginia Citizens Consumer
Council, Inc., 425 U.S. 763 (1976). We commend you and your
colleagues for being particularly sensitive to maintaining
the free flow of information, which citizens of this country
have come to expect and enjoy.
NAA appreciates the opportunity to comment on this
legislation before your committee.
Respectfully submitted,
John F. Stern,
President and CEO.
Mr. BRYAN. Mr. President, the NCAA has threatened for years to deny
NCAA-sponsored tournament press credentials to newspapers that publish
lines, but they have never done so. These hollow threats are further
evidence of the futility of this exercise.
Secondly, we have been told that this legislation, while admittedly
no panacea, will ``send a message'' to students and others that sports
gambling is illegal. Again, there is a complete absence of any
empirical evidence or fact-based testimony that America's college
students, or adults for that matter, will heed such a so-called
``message.'' By this logic, we should reinstate Prohibition on serving
alcohol to adults over the age of 21 to ``send a message'' to minors
about drinking and to reduce binge drinking by underage students on
college campuses. The absurdity of such an approach is self-evident,
and it applies with equal force to this legislation.
The real message that this legislation will send is that shirking
responsibility and pointing fingers at others is the appropriate manner
in which to handle a serious national problem. Everyone should agree
that a problem so pervasive on college campuses should
[[Page S7528]]
be addressed comprehensively and with a serious commitment from the
NCAA and its member institutions, including federal requirements
enshrined in appropriate legislation.
While we heard considerable rhetoric at our Commerce Committee
hearing concerning what the NCAA intends to do about illegal gambling
on college campuses, there was very little testimony concerning what
concrete steps at NCAA has taken to date. For example, the chairman of
the NCAA's executive committee testified that during the ten years he
has served as president of his university, he could not recall a single
case of a student being expelled or otherwise disciplined for illegal
gambling, even though he acknowledged there are illegal student bookies
on his campus.
We are repeatedly told by the sponsors of this legislation that the
NCAA has plans to set up its anti-gambling initiatives. The facts belie
the accuracy of those assurances. For example, the NCAA's total
operating revenue for 1998-99 was $283 million. Within the overall
budget, there was a line item for ``sports agents and gambling'' that
equaled $64,000. Similarly, the line item for 1999-2000 is $139,000 out
of revenue of $303 million. Only three of nearly 300 NCAA employees are
assigned to gambling issues, and those persons have other
responsibilities in addition to illegal sports gambling.
The NCAA's own presentations to the NGISC and in other venues
indicate that there are many other important steps that should be
taken, beyond what this legislation would do, to address the problem of
illegal gambling on college campuses. The NCAA and its members have
failed to follow through on the very steps they recommended to the
commission just one year ago. For example, much was made at our hearing
about the NCAA's use of a new public service announcement during the
telecast of the men's basketball tournament. There was little evidence
that this PSA was shown either frequently or during times of maximum
audience exposure. Furthermore, there is no indication that the NCAA
followed the recommendation of the NGISC and specifics PSA commitments
be written into the NCAA's television contracts. A $6 billion, 11-year
deal for the television rights to the men's ``March Madness''
basketball tournament was signed by the NCAA with CBS Sports after the
NGISC made this recommendation in its Final Report.
There is a serious need for a combination of enforcement, education,
and counseling initiatives to address illegal gambling by high school
and college students. Unfortunately, the Commerce Committee took no
testimony from those individuals on campus, in our states, and at the
Federal level who are charged with enforcing the laws that already make
this activity illegal. Similarly, we heard very little from
professionals whose job it is to educate students about the dangers of
gambling abuse and to counsel those who suffer from such problems.
Finally, while this bill directly impacts Nevada, let me suggest to
my colleagues we should be alarmed by the precedent that would be
established if this bill becomes law. For over 200 years the Federal
Government has deferred to the State to determine the scope and type of
gaming that should be permitted within their borders. The Professional
and Amateur Sports Protection Act preempted that authority as it
relates to sports wagering, but only prospectively. If Congress sees
fit to overturn Nevada's sports wagering statutes that have been on the
books for many decades, it sets a dangerous precedent that should be
cause for concern for the other 47 States with some form of legal
gaming operations.
We all agree as to the serious nature of the problem. Unfortunately,
the legislative proposal will do nothing to address that issue.
As I have said during my testimony before the Commerce Committee,
this legislation is an illegal bookie's dream.
I yield the floor.
The PRESIDING OFFICER (Mr. L. Chafee). The Senator from Arizona.
Mr. McCAIN. Mr. President, before my friend from Nevada leaves the
floor, I intend to make a couple of comments on his statement. One of
the most valued members of the committee is Senator Bryan from Nevada.
Senator Reid and I came to the House of Representatives together many
years ago. I consider us to have a very warm and excellent relationship
over many years.
I will miss Senator Bryan very much as he leaves--not only the Senate
but as a much valued member of our committee. Coincidentally, on the
issue of sports, Senator Bryan and I were able to work together on a
couple of boxing issues that a lot of our Members did not care much
about. But hopefully we were able to assist some people who come from
the lowest economic rung of our society and prevent, at least to some
degree, the exploitation to which many of them are subjected.
I preface my comments with a brief response to both Senators from
Nevada. Again, I say that with respect and affection.
I did not invent this legislation, nor did it come from any Member of
this body. It came as a result of the National Gaming Impact Study
Commission, a commission that met for a long time and came up with this
strong recommendation. Then the issue was picked up by the NCAA
coaches. Some of the most respected men and women in America,
obviously, are our college coaches, people of the level of Dean Smith,
Joe Paterno, Jim Calhoun, and so many others who have made this a high
visibility and important issue, at least to them, including the
presidents of the colleges and universities across the country.
I will not rebut their comments or try to respond to all the comments
made by Senator Bryan, except to say I respect his view. But I do
believe there is a compelling case that has been made, not by this
Member but by the college coaches and the university presidents who say
this is placing these young--as Coach Calhoun called them--kids in the
path of temptation that is something that could be very unhealthy for
them.
So I respect the views of my friends from Nevada. I hope we will have
a vigorous debate on this issue, and hopefully we will be able to
address it one way or another. But I do believe it is an issue of some
importance, at least if you believe those who are closest to these
young men and women, our college athletes.
Mr. BRYAN. Will the Senator yield for a moment?
Mr. McCAIN. I am happy to yield.
Mr. BRYAN. I will just acknowledge his very generous comments. I
appreciate that.
Let me respond in turn. I have been privileged and honored to serve
in that committee with him as chairman. We have worked on many, many
issues, not only the athletic issues which we have addressed, but both
of our respective jurisdictions are going to enjoy expanded air service
as a result of his leadership, providing nonstop service to the
Nation's Capital from our respective States. So I assure him my
comments are in no way intended to be personal to him. It is a
difference of opinion. The Senator from Arizona, who is a tenacious
advocate and fearless defender of his own State, can understand the
Senator from Nevada obviously has serious concerns. They are honest
differences of opinion with the Senator from Arizona. I wanted to state
that for the Record.
Again, I thank him for his very generous comments.
Mr. McCAIN. I thank Senator Bryan. I will come to the floor sometime
in September to chronicle his many accomplishments and the admiration
and heartfelt affection I have for Senator Bryan. But at the moment I
say we will respectfully disagree. I think we will have both an
interesting and, I hope, illuminating discussion of what has become, in
the eyes of many, an important issue. I thank Senator Bryan for his
kind remarks. I will miss him, although I want to make it clear that he
is not departing this Earth. In fact, he may be going to a much more
rewarding and comfortable lifestyle.
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