Legal sports betting has become a booming industry in the United States since the Supreme Court made a landmark decision five years ago. Americans have placed more than $220 billion in bets with legal gambling outlets during this time, and the industry remains on track for continued growth. Two-thirds of all states already offer legal sports betting, and indications foresee that more states will join in the coming years.
The industry’s fast growth has made it a significant aspect sports culture. It has become commonplace during sporting and other events to see advertisements from gambling companies featuring celebrities like Jamie Foxx and members of the Manning football dynasty. The CEO of DraftKings, one of the industry’s leading firms, noted that legal sports betting is becoming more accessible to fans, with the availability of micro-bets during games similar to capabilities offered by apps like ride-hailing and stock-trading tools.
The sports betting industry has opened up new opportunities for additional tax revenue for states, a small auxiliary revenue stream for casinos and horse tracks, and a way to keep people away from unregulated offshore gambling websites. However, there have been some problems associated with this growth. Those treating compulsive gambling have seen an increase in the number of calls for help since sports betting was legalized in cell phones in the US.
Some NFL players have been fined for betting, and some schools that have partnerships with sports organizations have been called out for illegally advertising sports betting to students under the age of 21, prompting changes in policy from both the leagues and the gambling companies. Sportsbooks in Ohio, Pennsylvania, and New Jersey were forced to stop taking bets on the University of Alabama baseball team on April 28 after suspicious activity during a game between Alabama and Louisiana State University.
According to the American Gaming Association, sportsbooks keep roughly 10% of their money after paying winning bets. The second half of 2022 saw the first successful quarter for FanDuel, while the fourth quarter of this year is forecast for DraftKings and the second half of the year for BetMGM. Profitability has been an ongoing problem for the sector.
The amount of money kept as winnings by sports books over the last five years is $17 billion, generating almost $3.6 billion in sports betting taxes on operators. Although significant, the taxes collected were often just a drop in the proverbial ocean.
After receiving negative feedback, the gambling industry and major professional sports organizations are working to strengthen advertising restrictions. Despite this, FanDuel and DraftKings dominate over 70% of the legal sports betting industry in the United States.
In the future, there may be more comprehensive deals between teams, leagues, stadiums, betting operators, media businesses, hotel chains, and beverage companies. Sportsbooks may continue to operate in close proximity to professional sports arenas, although they may reduce their marketing budgets. The practice of microbetting, in which wagers are placed quickly one after another, is gaining popularity. As a result of the speed and ease with which bets can be placed, some players may be tempted to risk more money than they can afford.
