Legalizing gambling is becoming a popular topic in the United State. While some states are already legalizing gambling and sports betting, many are still speculating about the pros and cons that it may contribute to their economy. Although it is expected that all states will legalize sports betting shortly to take advantage of economic gains, it is a policy that will not happen overnight.
Of course, many critics are against the legalization of gambling while some advocate it as well. Let’s see the many potential benefits once all states finally legalize sports betting.
There is a Lot of Money in Gambling
While state-sanctioned sports betting may cause anxiety in some conservatives, we expect that they will be shocked to learn that this activity has been allowed to operate under their jurisdictions for many years now. Americans bet nearly $5 billion during the Super Bowl 52 alone, with a measly 3% coming from legal gambling. The remaining 97% is wagered using overseas betting platforms.
Legalizing sports betting will guarantee that revenues will be kept within the US and help in boosting the economy. It will also benefit casinos that are starting to go bankrupt all over the nation. It is estimated that regulated sports betting has the potential of adding $2.9 billion to the annual casino profits nationwide, and that is only the start of its many economic benefits.
Based on a study conducted at the Oxford University in 2017, legalization of sports betting can result in profits between $11.6 billion and $14.2 billion to the United States’ GDP, depending on which states will decide to legalize it and their respective tax rates. Furthermore, legal sports gambling can result in the creation of 125,000 to 152,000 jobs that will pay between $6 billion and $7 billion in total wages. This means that a casino worker can enjoy an annual salary of $48,000 in the new sports betting industry.
With technological advancements in online betting platforms and the latest investments from gambling consortiums like MGM, the financial benefits of legalized sports betting can be more powerful than original speculations.
Let us summarize the possible fortune that can be generated from legalizing sports betting in the country:
– Total economic output based on sales of businesses in the US is expected to reach up to $41.2 billion.
– Legal sports betting activities, including salaries, wages, benefits, and gratuities are expected to support up to $11.0 billion of total employee income.
– Total jobs that will be created – direct, indirect and induced – is projected to reach 216,671.
– It is expected that legal sports betting will bring in a whopping $22.4 billion to US GDP.
– Fiscal impacts, consisting of state, local, and federal tax influence, are expected to reach $8.4 billion.
Gaming and Technology
In the UK where online sports gambling is commonplace, the mobile betting industry grew twice its size over the past five years. It is responsible for up to 60% of UK’s sports betting market.
A lot of advocates comment that US lawmakers would learn a lesson or two if they follow the blueprint of the United Kingdom for the much-awaited sports betting in the US, where mobile betting via smartphones and tablets will potentially bring up to $9 billion worth of profits. This gain translates to a 50% increase in total sports gambling earnings.
The mobile betting applications available across all devices create a convenient gambling experience for customers. Of course, it is much easier to place a bet for a football game from home while you watch the game rather than driving oneself to the casino to place a wager in the last minute.
Technological innovations are slowly making sports gambling more fun and lucrative, too. There are also sports betting and gambling apps that allow fans to create a unique bet by simply “tweeting” an idea to the developer company.
The mobile betting market in the US will most likely become the largest once sports betting becomes legal across all states. The partnership between MGM and the NBA is the beginning of a potentially profitable industry.
Increased Tax Revenues
This will be the primary motivator for some states to finally legalize sports betting in their jurisdiction. Instead of losing tax money from neighboring states that allow its implementation, legalization will let them enjoy more profits over time. As more states are allowing online sports betting, those who are still closed to the idea will eventually jump in to avoid losing tax profits.
More Assistance Becomes Accessible for Those who Need It
There is a problem with gambling and sports betting for some individuals but once it becomes legal, sports betting will open the doors for excellent treatment strategies for those that need help. Once it is legalized, it will also roll out help solutions that will be beneficial for many people.
While there are responsible bettors, there will always be those that will go overboard and place themselves in such difficult situations.
More Exciting Gaming Experience
With sports betting being legalized, developers will make game titles and events that will be exciting and fun from a viewing stance. Many commercial establishments such as bars and entertainment venues can take advantage of this excitement to encourage fans and fill their seats.
Legalization of sports betting will result in a trickle-down effect on local economies and businesses. While there will be organizations that cannot take bets, launching viewing parties for players will be an exciting and suspenseful experience.
More jobs will be created as a result of sports betting legalization. Any enterprise that you introduce should come with a lot of buzz and will help open doors for new businesses to arise, which translates to more employment opportunities.
For instance, sports bars will be booming with traffic and restaurants can take advantage to pack their bar, too. Savvy business owners will find many ways to utilize the power of the Internet to their benefit.
States that have legalized sports betting will need to create new departments to oversee and manage the sports betting industry in their jurisdiction. Established DFS operators like DraftKings and FanDuel have already started to make the transition in to legal sports betting in states that allow it.
Safer Sports Betting Platform
Legalization will promote better spaces for sports betting. Instead of placing bets via illegal wagers, people can now go to legal gambling venues that players are allowed to go to. Bookmakers will experience interest decrease, while there will also be people that will turn to legal sports gambling as a more favorable platform to place wagers.
Not only are online sports better and safe, but there will also be more control and options for players. It will be under the full discretion of a state to identify how and where residents can place their bets for sports.
Here are some examples of how the legalization of gambling has helped in creating safer venues to place wagers for sporting events:
In the 1940s and 1960s, the mafia was taking control of the large majority of the sports betting realm. Today, organizations have pushed for US bookies to offshore entities, while millions of Americans are engaged in an unregulated market. Sports betting will be under the ruling made for Curacao and Costa Rica.
With the legalization of sports betting, states may not ensure the fairness of the games, background checks on workers, or audit financial records of a company. States may also not be able to safeguard the interest of consumers.
Reduced Legal Operations
Reduction of illegal operation of traditional casinos results because everyone can use apps to throw in a wager. Sports betting will assist in cleaning up and reducing illegal operations throughout the country.
Sports’ Integrity Would be Protected
There is a grey line these days between sports and betting, but if it becomes legal, games would be protected at all times. There will be no questions whether or not individuals will be bettering on a specific game. People would automatically assume that each and every game and every match will be a subject for betting.
Legalization will spur the opening of many legal websites across the US. There will be more websites and apps that will again create jobs for everybody.
Excellent Investment Opportunities
There will be start-up entities that will be launching on a daily basis, most of which will necessitate funding. Chances for economic growth will be plenty. And since it is in the gambling phase translates to more lucrative deals in terms of funding but also triumphant exits. Expect major players to appear and absorb smaller sports betting companies.
Reduce Las Vegas’ Dominance
At present, Las Vegas clearly dominates sports betting. As more and more states accept the legalization of sports betting, Las Vegas will slowly reduce their dominance or authority over time. Sin City will be a less popular destination for online gambling and sports betting.
States where Sports Betting is Legal:
The state of Nevada has been the only state in the US where gamblers can place wagers on different sporting events.
Delaware was the first to acknowledge sports betting after the Supreme Court’s decisions. All three casinos in Delaware are operating.
New Jersey was the second state that started accepting bets after the decisions provided by the Supreme Court. Governor Phil Murphy signed sports betting into law. The first official sports betting in New Jersey at Monmourth Park began the next day, placing a $20 bet on Germany to win the World Cup.
The state passed an e-sports gambling bill in 2017 in anticipation of the ruling handed down by the Supreme Court, but betting in the state is yet to begin. The Hollywood Casino at Penn National Race Course became the first-ever casino to sign a petition requesting sports betting, a gaming control committee to be considered legal.
Also, Pennsylvania imposes a high tax on sports gambling. In fact, 34% of revenues plus 2% tax goes to local grants for smaller counties, as well as a one-time fee of $10 million.
The state passed a bill that allows sports gambling. This was signed by then-Governor Jim Justice. The West Virginia Lottery expects that bets will be accepted in actual casinos, that which is before the start of the NFL season. All five casinos in West Virginia plan to offer sports betting, bringing in up to $5.5 million during its first year.
The state changed its legislation in 2017 so it can allow sports betting. Before bets were taken in Mississippi, casinos had to apply for a permit and set up actual operations, which delayed the entire process of legalization for many months. The sportsbook of The Beau Rivage Resort & Biloxi casino has already opened in these venues.
It was in 2017 that Rhode Island passed legislation that allows for sports betting. It is expected that this will provide about $34 million for 2019. Sports betting is mainly held in Twin River Casino, both Lincoln and Tiverton.
Who can Benefit from the Legalization of Sports Betting in the United States?
Here is a shortlist of the benefits of legalizing sports betting in the United States and beyond.
– A sports league such as the NBA and PGA.
– A specific sport such as tackle football, tennis, or golf
– Sports teams (LA Lakers) and individual players (Tom Brady)
– Sponsorship from various entities
– Mainstream media
– Online betting agencies and online sports betting apps
– Chronic gamblers or those with addiction to gambling or sports betting
– Hospitality industry
It is quite obvious that the primary benefits mentioned earlier can be stemmed back to the potential earnings for placing a bet on game results. There are many ways by which the increase in revenue will be allotted properly.
Legalizing sports betting offers microeconomic and macroeconomic benefits shared across a long list of industries and not only limited in the sports and gambling industries. Through legalization, people will have access to unlimited sports betting platforms, and with added convenience to boot, it will not come as a shock if the sports betting industry adds that much-needed boost to the country’s economy.
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