An investigation into illegal sports gambling has finally come to a close, with local, state and federal authorities announcing they have busted a multibillion-dollar gambling ring in Plano, Texas.
As details of the case emerge and states continue to lobby for legalized sports betting, questions are arising about whether allowing this type of gambling in a regulated atmosphere might cut down on pervasive sports gambling law violations.
The sports gambling ring in question was based in Texas, but operated via internet to nearly every state in the country, CBS 11 News reports. The Internal Revenue Service and U.S. Attorney’s office joined the ongoing investigation in 2006. When the ring was finally broken up, authorities found stacks of gold, millions in cash and paperwork revealing that the ring may have handled more than $5 billion in gambling profits.
The bust comes to light amid New Jersey’s appeal to allow sports gambling in local regulated casinos, despite a recent court ruling that prohibited the state from moving forward with its plans. However, Gov. Chris Christie said he plans to take the issue to the U.S. Supreme Court if need be, and noted that it’s unfair that certain states – such as Nevada – are permitted to hold a monopoly on sports betting.
As state’s rights are likely to come into play in the ongoing lawsuit, some are questioning whether legalizing sports betting and managing it in a controlled environment would be preferable to deciphering existing gambling legislation and imposing restrictions on states, many of which are struggling for revenue. Amid the economic constraints many states are facing, revenue from sports betting may help alleviate budgetary constraints. On the other hand, the 1992 federal law that limits sports betting to four U.S. states has been historically upheld by the courts. As New Jersey moves forward with its appeal, it will be interesting to see how the pendulum swings.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
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Tariff Response Options for Small Businesses Facing Financial Distress
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Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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