Sports betting has always been a field of intense strategy, game play, and legislation. Although sports betting is legal in many parts of the world, it’s not completely legal in every state in the United States. Only a portion of the states were grandfathered in after federal legislation passed and others introduced and passed legislation in 2018. With the new legalization of sports betting, governments and industry regulators such as state lottery corporations are now looking into various ways to properly regulate and enforce sports betting rules.
From 1992-2018 there was actually a federal ban on legalized sports betting in the United States. It was covered under the Professional and Amatuer Sports Act (PASPA). The four states that were grandfathered in under the lift of the ban were Oregon, Nevada, Delaware, and Montana. These states were granted immunity when the ban was first placed. Some individuals think because the ban was just lifted that sports betting is a new concept, but actually, Nevada has had legalized sports betting since 1931.
Some bettors are hesitant as they believe that they odds will always be against them; however, reports show that as sports betting popularity rises, companies will compete for market share thus leveling out the playing field. The actual amount of investment tied up in sports betting has been coined in the media at around $400 billion, but some experts argue that number is slightly arbitrary. That number starts by including black market shares and the nature of that market itself is incredibly difficult to actually calculate a proper estimate. The $400 billion sports betting marketing number constantly renowned by reporters is actually a projection for the market as well. Such a number holds little weight in an exact calculation of the market share. It’s truly a number to get investors interested in a market that is now legal and shift their focus to a rapidly expanding market.
Due to the fact that it is a newer market for most states, many states have regulations on what can or cannot be done in sports betting. Two popularly proposed regulations by states include in-person registration and heavy restrictions on remote betting. Another concern against sports betting is that it will make it easier for match fixers. Ethical companies will actually have the power to immediately report any type of suspicious activity or behavior, thus making it easier catch inappropriate users.
Some sports betting can take place online. As the shift to all digital platforms makes it easier for consumers to utilize such a large community, internet sports betting will become much more popular, especially with the ban being recently lifted. Fans can bet on teams or matches. There are various ways for a sports fan to show support and excitement for their teams. As sports betting becomes more widespreadly legal, there will also be an increase in consumer attention.
Some stocks have been gaining market attention as their investment opportunities show positive opportunities for future financial gains and ROI. International Game Technology, a company that provides many casinos with slot machines, has vast potential to utilize their relationships with casinos to grow the sports betting market. The CEO of MGM Resorts International already told media outlets that they have already begun the first stages of implementing sports betting as more and more states begin to legalize it. Although the federal ban was lifted, it is still at the opportunity of the state governments to pass legislation legalizing sports betting. Federal law trumps state law, but states still have the ability to have a fair amount of say within their own boards, especially for something as new as this.
Some states are already making projections for potential revenue that will be gained from sports betting taxes; however, some experts say to wait to crunch those numbers because the market is far too unpredictable at this point. A large argument fights for online or in person betting. Currently a large portion of betting will more than likely only be allowed in person or at racetrack locations. Many sports leagues are actually looking to profit from taxing sports betting so these profits could be shared up to 20% in some cases. Although sports betting has the potential impact to help states gain another form of tax revenue, it may not actually prove to have the exponential profits that some experts in the industry are predicting.
Sports betting should be something that is legal everywhere. It is harmless with proper regulations and government monitoring. Sports betting is truly just another form of gambling but on games and teams instead of a machine, cards, or dice. As more states continue to pass legislation, they may actually see an increase in tax revenue. Although due to the fluctuating nature of the market, they shouldn’t rely on the revenue, yet they can remain hopeful for the potentially growing industry.