Supreme Court makes sports betting a possibility nationwide

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The Supreme Court on Monday gave its go-ahead for states to allow gambling on sports across the nation, striking down a federal law that barred betting on football, basketball, baseball and other sports in most states.

The justices voted 6-3 to strike down the Professional and Amateur Sports Protection Act, a 1992 law that forbade state-authorized sports gambling with some exceptions. It made Nevada the only state where a person could wager on the results of a single game.

Many states have hoped their cut of legalized sports gambling could help solve budget problems. Stock prices for casino operators and equipment makers surged after the ruling was announced.

The ruling, in a case from New Jersey, creates an opening to bring an activity out of the shadows that many Americans already see as a mainstream hobby. The American Gaming Association estimates that Americans illegally wager about $150 billion on sports each year, and one research firm estimated before the ruling that if the Supreme Court were to strike down the law 32 states would likely offer sports betting within five years.

Justice Samuel Alito wrote for the court, "The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not."

Justices Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor dissented. Ginsburg wrote for the three that when a portion of a law violates the Constitution, the court "ordinarily engages in a salvage rather than a demolition operation," preserving what it can. She said that instead of using a "scalpel to trim the statute" her colleagues used "an axe" to cut the remainder down. Breyer agreed with the majority of the court that part of the law must be struck down but said that should not have doomed the rest of the law.

Concerned that questions will be raised at some point that betting could affect teams' performance and the outcome of games, all four major U.S. professional sports leagues, the NCAA and the federal government had urged the court to uphold the federal law. In court, the NBA, NFL, NHL and Major League Baseball had argued that New Jersey's gambling expansion would hurt the integrity of their games. Outside court, however, leaders of all but the NFL have shown varying degrees of openness to legalized sports gambling.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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