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A LOOK INTO THE SPORTS BETTING INDUSTRY IN AMERICA

Sports betting in America is a $150 billion industry. Last spring alone, a whopping $8.5 billion was spent gambling on the outcome of college basketball games. The nation's leading sports associations and leagues are increasingly waking up to the fact that sports betting is here to stay. Some associations like the NCAA oppose both legal and illegal forms of betting, while others are embracing it due to the commercial possibilities of sports betting. 

Where is Sports Betting Legal?

In May 2016, the Supreme Court ruled that all states were free to legalize sports gambling. The ruling brought to an end the federal legislation that previously restricted sports betting to the state of Nevada. Consequently, sixteen American states have enacted legislation to legalize sports betting in the past two years. Of these, six have already allowed betting companies to start operations.

Industry experts believe that the legalization of sports betting in all states will have a positive impact on the economy, with projected revenues of up to $400 billion annually. This means that states will have a new revenue source. Of the $150 billion that was spent by sports bettors in 2017, only $4.9 billion was spent on legal betting platforms. This is what stirred the debate about the legalization of sports betting. 

Rather than having people betting illegally, it would be sensible to allow them to bet legally but within specific regulations. In New Jersey alone, the legalization of sports betting generated revenues worth $200 million besides creating over 3,000 full-time jobs within one year. Thanks to the impressive growth of NJ online sports betting, the state is on course to surpass Nevada and become America’s sports gambling capital. 

Even though sports betting revenues seem to be growing nationally, some states are falling short of their projections. In Rhode Island, for instance, the projected collection during the fiscal year following legalization was $11.5 million. However, only $150,000 was collected. The low revenue can be attributed to the fact Rhode Island imposed colossal license fees and taxes on betting companies. This discourages them from operating in those states. 

What’s the Perception of Sports Associations Towards Betting? 

One decade ago, it was almost unimaginable to raise the issue of betting with sports leagues and associations. Back then, these organizations unanimously opposed betting. Their main concern was that referees, athletes, and coaches could get paid to influence game results for the benefit of gamblers and operators of betting companies. 

Things have since changed, primarily thanks to the growing popularity of betting sites. Sports associations and leagues are finding the new profit source irresistible. Following the Supreme Court ruling, individual leagues have started licensing their proprietary statistics to casinos for millions of dollars. Similarly, the associations are demanding an ”integrity fee” of 0.25%. They see this as a way of preventing illicit activities such as match-fixing. 

What Does the Future Has in Store?

Currently, sports betting is heavily influenced by technology. With advances in technology, there’s so much that you should expect in the future. Here are some of the trends that you should expect to see in the coming years.

Big Tech Companies Could Become Mega Bookmarkers

Online sports gambling revolves around the use of digital applications created by large tech companies. You shouldn’t be surprised if these companies decide to become part of the sports betting industry. The companies have the resources to streamline the sector. 

The Growth of Mobile Betting

Currently, it's possible to place bets in real-time. In Las Vegas, 40% of sports bets are done via smartphone apps. Other states will soon catch up. Even so, not all betting sites allow mobile betting. In 2020 and beyond, expect to see an influx of smartphone apps, which will enable you to enjoy your favorite sportsbooks from wherever you are.   

Similarly, you’ll also be able to bet on the outcome of sports events in real-time. This way, betters will have higher winning odds since they will e able to place bets before games starts, as well as when the games are in progress. Although sportsbooks prefer having bettors in their casinos, they have no option but to accept online bettors because that’s where the industry is moving. 

The Legal Betting Market Will Get Stronger

Before legalization, the illegal sports betting market was more lucrative than the legal market. During the 2017 Super Bowl alone, U.S. bettors spent a whopping $4.5 billion. Surprisingly, 97% of the bets were illegal, something that shows the potential that the industry has. 

With the legalization of betting, things are bound to change because bettors won’t have to wage their money with illegal bookmarkers. Consequently, the global sports betting industry will get energized since America has the biggest betting industry in the world. 

As more states legalize sports betting, there will be a paradigm shift in the general public's attitude towards the industry. We are living at a time when sports betting can no longer get ignored. With legalization, more bookmarkers and other betting operators will open shop. To counter illegal betting, laws should be enacted to protect bettors, besides ensuring that there’s a level playing ground in the industry. This will go a long way in making sports betting a mainstream economic activity. 

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