Sports Betting In The United States

Sports Betting In The United States
The Professional and Amateur Sports Protection Act (PASPA) of 1992 made sports betting illegal in the United States. The act made an exemption for Nevada as well as sports lotteries in Oregon, Delaware, and Montana. In 2009, New Jersey State Senator Raymond Lesniak unsuccessfully challenged the act by claiming it was unconstitutional. After a long and tedious legal battle, the Supreme Court ruled in May 2018 that PASPA was unconstitutional because it conflicted with the Tenth Amendment. This ruling made it possible for individual states to legalize sports betting and several states have done so while others are working towards it.
New Jersey Gambling
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Which States Have Legalized Sports Betting?
Having PASPA overturned doesn’t mean that sports betting is legal across the United States. It really means that individual states can decide whether or not they want to legalize sports betting. After PASPA was struck down, Delaware quickly legalized single-game sports betting and then New Jersey acted and began accepting sports bets on June 14 2018. New Jersey’s sports betting market is just over 3 months old but it's already massive and will continue to grow bigger as the new NHL and NBA season progresses.  
Mississippi also jumped on the sports betting bandwagon in August as did West Virginia. Pennsylvania and Rhode Island are now on the cusp of legalizing sports betting. Those states are finalizing regulations and are expected to start accepting bets in the coming months. Legislation to introduce full-scale sports betting in New York failed to pass in June but it is expected to pass when it is re-introduced in 2019.
Which States Are Moving Toward Legalizing Sports Betting?
Connecticut introduced a comprehensive sports betting bill in early 2018 but the state’s legislative session ended without a formal vote on the matter. Governor Dannel Malloy has suggested that a special legislative session could be called to address the bill and it is widely believed that the bill will pass. Illinois has also drafted a bill although a vote has yet to take place. Kentucky, Michigan, Indiana, Massachusetts, and Maryland as well as Minnesota, Missouri, Kansas, Iowa, and Louisiana have also shown indications that they are moving towards the legalization of sports betting.
It is also looking like Oklahoma, South Carolina, California, Montana, and Ohio will have full-scale sports betting in the near future. Alabama, Idaho, Maine, and Wisconsin are among the several states where legalized sports betting doesn’t appear to be on the agenda. One state that probably won’t be legalizing sports betting is Utah where the state’s constitution strictly expresses an anti-gambling stance.
Developing Sports Betting Partnerships
Sports bettors might not realize how much teamwork and technology is involved in running a sportsbook especially if it is online. Because very few betting companies are able to provide everything that is needed to operate an online betting platform, we are seeing more and more partnerships being created. Some of the recent partnerships that were formed to power sports betting in the Garden State include Resorts Casino AC with DraftKings, FanDuel with the Meadowlands racetrack, William Hill and Monmouth Park and Hard Rock AC with Bet365.
How Do Sports Leagues Benefit From Legalized Sports Betting?
A recent study that was conducted by Nielsen Sports found that the NFL could see a $2.3 billion boost from revenues generated by legalized sports betting. Betting operators spend money on advertising, data, and sponsorships which leads to more fan engagement and an increased consumption of the league’s products. It was found that the NFL could generate an additional $573 million from sports betting companies and data providers alone. Sports betting operators are projected to spend $451 million on advertising which will boost the NFL’s rights fees. The NFL is also trying to ensure that casinos that advertise with its teams will buy official NFL data.
Another way that sports leagues like the NFL, NBA, MLB, and NHL may benefit from legalized sports betting is through “integrity fees”. While these fees haven’t yet been imposed on sportsbooks, it’s almost certain that they eventually will be. Sportsbooks would pay a percentage of their handle to a fund that would then be disbursed to the leagues. Sportsbooks are obviously firmly against integrity fees as it forces them to pay for winning and losing bets on top of the fact that they are heavily taxed as it is. On the flip side, sports leagues love the idea. The NBA and MLB are currently lobbying state legislatures to impose integrity fees.
New Jersey – Sports Betting Stats
August was a good month for New Jersey sportsbooks which generated over $6 million in revenue. The Meadowlands led the way taking in $3,060,367 during the month which is a significant increase from the $1,372,216 they took in during the month of July. The Meadowlands racetrack has hauled in nearly $4.5 million this year. Ocean Resort is the only sportsbook to see a decline in revenue.
August also saw the launch of three online sports betting platforms and they are already raking in the cash. DraftKings Sportsbook went live at the beginning of the month and hauled in $2,970,331. PlayMGM started accepting bets on August 22n and ended up with $49,626 while SugarHouse Sportsbook launched the next day and took in $103,324. This is good news for New Jersey who collects 13 percent in taxes from online bookmakers.
FanDuel Sportsbook launched their online platform on September 1and they will likely be a major player in the market. 888 Sportsbook, Caesars, FanDuel, and William Hill are all expected to begin taking online bets in September while other major operators like bet365 and BetStars are also expected to launch online sports betting platforms in New Jersey.
It is almost a sure thing that sportsbooks are going to enjoy a very profitable September as the NFL season has begun. The NBA and NHL seasons also begin soon which will give them a bigger boost.
Sports betting in the United States is now a booming industry that will only grow bigger as more states legalize it. New Jersey’s model is proving to be quite successful and if other states put the same amount of thought and planning into developing the industry in their states then there is no reason why their sports betting industries will not enjoy good success.