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The United States Legalizes Sports Gambling: The View from Veblen

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On 14 May 2018 the United States Supreme Court, in what amounts to a revolutionary decision, ruled 6-3 against a 1992 federal law prohibiting sports betting in most U.S. states. Justice Samuel Alito explained the decision in terms of state’s rights: “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.” While this is a strong blow against the centralizing tendencies of Washington which have become more prominent in the last eight years, it is also a strong blow against the orthodox view of gambling in the United States. Indeed, this was a long time coming.

The absurdity of prohibiting sports gambling in the United States has not been lost on those of us who travel. In the summer of 2016 I was watching the European football championships with a group of British travelers in Seville, Spain, who found it absurd that in the United States Americans, over eighteen, could buy a rifle yet could not wager even a few “quid” on a football match (or baseball game. Or NBA game. Or NFL game). Yet, it seems as if at least five states have recently passed legislation regarding sports betting so–in terms of state’s rights—sports gambling might become legal in a few states in the not-too-distant future.

 

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A State-by-State Breakdown on a Very Technocratic Map. Image Courtesy Of: http://www.espn.com/chalk/story/_/id/22516292/gambling-ranking-every-us-state-current-position-legalizing-sports-betting

 

But why has this change been so long in coming? Eminent Norwegian-American Sociologist and Economist Thorstein Veblen’s The Theory of the Leisure Class might give us some insight into this. Beyond the Black Sox scandal of 1919, Veblen shows that an aversion to gambling is part of modern industrial society. Veblen explains that “the chief factor in the gambling habit is the belief in luck” and this belief is “an archaic trait, inherited from a more or less remote past, more or less incompatible with the requirements of the modern industrial process, and more or less of a hindrance to the fullest efficiency of the collective economic life of the present” (Veblen 1953[1899]: 183). Indeed, this belief in luck is incompatible with industrial society because it threatens its mechanical—and ultimately rational—nature. Veblen explains:

 

The industrial organization assumes more and more of the character of a mechanism, in which it is man’s office to discriminate and select what natural forces shall work out their effects in his service. The workman’s part in industry changes from that of a prime mover to that of discrimination and valuation of quantitative sequences and mechanical facts. The faculty of a ready apprehension and unbiased appreciation of causes in his environment grows in relative economic importance and any element in the complex of his habits of thought which intrudes a bias at variance with this ready appreciation of matter-of-fact sequence gains proportionately in importance as a disturbing element acting to lower his industrial usefulness. Through its cumulative effect upon the habitual attitude of the population, even a slight or inconspicuous bias towards accounting for everyday facts by recourse to other ground than that of quantitative causation may work an appreciable lowering of the collective industrial efficiency of a community (Veblen 1953[1899]: 187-188).

 

In short, Veblen tells us that any belief in luck “counts as a blunder in the apprehension and valuation of facts” for science and technology (Veblen 1953[1899]: 190).

Given that science and technology are the bedrocks of the rational and technocratic society which defines the modern world, luck—like individual creativity and emotions—cannot be celebrated without threatening the basic foundational logic of modern industrial (and especially post-industrial, or digital) society. Perhaps this is one possible reason why the United States has waited almost 26 years to overturn a federal ban on sports betting, giving the decision back to individual states. While this is certainly a victory for states rights—and a blow to the centralization of the American state—it is also a victory for the rule of law. As ESPN journalist David Purdum notes, the black market for sports betting already makes 150 billion USD annually. If the government can tax such betting then it could offer some states an important form of income, even if it threatens the sensibilities of a rational and “modern” society.

 

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Mr. Veblen Himself. Image Courtesy Of: http://booksyouwillneverread.com/a-review-of-the-theory-of-the-leisure-class/

Football and Geopolitics: Behind the FIFA Scandal

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May 27 2015 will prove to be a day that lives in infamy—the day scandal rocked world soccer’s governing body, leaving 14 FIFA officials under arrest in Zurich, Switzerland. This is, of course, old news. I’ll try to make it interesting by putting the whole surreal event in a geopolitical context. Lets start with the basics. It was the United States Department of Justice that spearheaded the operation in a 164-page 47-count indictment. In some ways it felt like turning back the clock; the United States of America emerging from its isolation to ostensibly “save the world” by crossing the oceans as in World War One and World War Two. Of course, there were reasons for this particular move since parts of the scandal pertained directly to the United States of America; the Economist outlines them nicely. A video version for those averse to reading is available courtesy of CNN.

The United States has, since World War Two, controlled much of the world system indirectly through both formal and informal international organizations, befitting its hegemonic role. Financially it was initially through the Bretton Woods system, since then it has been the International Monetary Fund (IMF) and World Bank. Politically control came first through Woodrow Wilson’s brainchild the League of Nations, now there is the New York headquartered United Nations. Culturally the United States has been able to influence the world to a great extent as well; first through Hollywood and music, now it is through technological advancements such as iPhones and iPods, Google, Facebook and Twitter that American culture is felt the world over.

The one sphere in which the United States has failed to make a global impact is, arguably, the world of sports. Indeed the results of a 2014 Harris poll, which has asked Americans aged 18 and older the simple question, “What is your favorite sport?” every year since 1985, tell us that Americans are very USA-centric when it comes to sport.

 

America’s Favorite Sports in 2014 (Courtesy of ESPN)

The National Football League (NFL)(Professional [American] Football): 35%

Major League Baseball (MLB) (Professional Baseball): 14%

College Football (NCAA): 11%

Auto Racing: 7%

National Basketball Association (Professional US Basketball): 6%

National Hockey League (Professional Hockey): 5%

College Basketball (NCAA): 3%

 

The top three vote getters—and more than half of the entire poll’s respondents and 60 percent—listed sports played almost entirely in the United States as their favorite sports. The next highest sport listed is Auto Racing. Although this is a global sport—think of Formula 1 and Rally cars—I personally believe that responders had NASCAR (Again, very American) in mind when answering this question. That leaves the NBA and the NHL—just 11 percent of all respondents called these two their favorite sports—as the only ostensibly international sports to make the list. I say ostensibly because although basketball is played all over the world—and the NBA has been making itself more international with each passing year—it is still a very different game than FIBA’s Euroleague, to name one. Hockey is international in the sense that the NHL has 7 Canadian teams (alongside 23 American teams), but I’m sure very few responders cited in this poll had ever watched a game from Russia’s KHL. Hockey also has a fairly small fan base, limited to those living in northern climates along a belt stretching from Vancouver to the steppes of Central Asia and going only as far south as, perhaps, Zurich, along that belt outside of the United States.

Soccer is certainly the one place in world sport—and world culture, for that matter—that the rest of the world has a chance to best the United States. And it is this chance for “the rest to beat the best of the West”—the battle between the global South and global North played out on the pitch—that gives international football, and the World Cup in particular, its unparalleled allure. The recently departed Eduardo Galeano’s masterpiece Soccer in Sun and Shadow explains the phenomenon well without explicitly saying it (and therein lies the book’s genius, at least for me). So why did the United States focus its power on FIFA, what I explained in my thesis was arguably the first international organization and the globe’s first foray into global civil society, when the US isn’t even interested in the sport? The answer may lie in the organization’s history. FIFA was founded in 1904 in the midst of a different era, the era of empires when the hegemonic power base was located in colonialist Europe and old world territorial powers such as the Austro-Hungarian Empire, Russian Empire, and Ottoman Empire were in decline. Fledgling nations rushed to achieve FIFA membership in order to affirm their independence—to states such as Lebanon, Syria, and others, emerging from the ashes of empires that had long controlled them as dusty peripheral provinces from lavish imperial palaces in far-off capitals, FIFA Membership was what NATO membership now means to Georgia, what European Union membership now means to Ukraine and Serbia. Membership to FIFA was a bold statement to the world: We Have Arrived! And this feeling has not gone away. Today there are 209 members in FIFA. Compare that to the 193 official member states of the United Nations. Look at Palestine’s attempts to push Israel out of FIFA if you don’t believe that FIFA membership can provide succor to those unable to get a seat at the United Nations at which to air their grievances. Perhaps the United States moved to strike a blow at an international institution that had strayed from its original goal of bringing together nations in fair play for everyone’s benefit; it was not founded to line the pockets of a few corrupt officials after all. So, like the American interventions in both World Wars, this can be looked at as another benign intervention by the world’s superpower in order to save the (sporting) world from itself. But there are other theories as well.

As many know, the nexus of the FIFA scandal lies in the bribes received by officials in return for, among other things, votes in choosing World Cup hosts. The hosts of the next two World Cups—as chosen by the aforementioned officials—are Russia (in 2018) and Qatar (in 2022). Both of these countries have something else in common—they are, on some scale, geopolitical rivals of the United States. And both won the right to host their respective World Cups over the United States’ interests; chief US ally England lost out to Russia in 2018 and Qatar beat out the United States’ own bid for 2022. Clearly, the United States could not sit idly by when the chance at winning a considerable amount of soft power influence in the world for themselves and their ally went by the way side. Russia has long been a geopolitical rival to the United States; Qatar is using the confusing situation in the Middle East to cement their role as a regional power in a region key to the United States’ foreign policy interests and hope that hosting a major sporting event such as the World Cup can add to their influence in the region. South African Sports Minister Fikile Mbalula represents another voice from the global South who criticized the U.S. move by mentioning the U.S./British alliance, saying that it is “for the United States and Britain to fight their own battles: ‘We have fought colonialism and defeated it and we still fight imperialism and we will fight it whenever it manifests itself.’

With the stakes this high, the United States’ move may still pay off. Although FIFA insists that there will be no re-vote for either the 2018 or 2022 World Cups, signs are showing that nothing is certain. Human rights groups have called on Qatar to publish the death figures for workers building stadiums for the tournament and it is estimated that 1200 migrant workers have died in the construction since 2014. Long-time FIFA president Sepp Blatter—who was reelected days ago despite the scandal—resigned on June 2 from his position at the head of Soccer’s governing body. These events—along with UEFA president Michel Platini’s long standing issue with the 2022 World Cup’s potential to affect the European football season—signal to me that a re-consideration may be on the cards.

In such a globalized world—where the World Cup has become bigger than ever—it is only fitting for the world’s sole superpower, the United States, to take a leading role. And in this increasingly interconnected world it is equally fitting that geopolitics is intimately linked with cultural and sporting events.

I find it refreshing that some action has been taken against corruption in world football. But there is still more to be done—the Economist warns that the endemic corruption in sports goes beyond just Sepp Blatter because “sports corruption is a reflection of wider problems—sport merely being an organism to which criminal succubi attach themselves—it is too formidable for sporting organisations to tackle alone.” For the sake of the game we all love let’s hope the United States’ intervention keeps the game from turning into a vehicle to make the rich richer. In David Goldblatt’s words, “the entire football industry has traded on the notion that the game really is the most global cultural practice in the world, a rare form of universalism on a divided planet. That, if nothing else, is worth salvaging from the wreckage.” I can only agree.

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Image Courtesy Of: http://pulse.ng/sports/football/sepp-blatter-resignation-sepp-blatter-resignation-the-football-world-reacts-id3822195.html