The Impact of the Legalization of Sports Betting in the US

The legalization of sports betting in the US has had a huge impact on the gambling industry. Not only has it generated wider awareness of online sports betting, but it has also brought a lot of wagered money back to shore, and to the benefit of states that are moving to legalize sports betting online. 

In this article, we will take a closer look at the impact of the legalization of sports betting in the US, and what it means for both businesses and consumers.

The history of online sports betting in the US

While online sports betting is now available in many countries around the world, it has only been legal widely in the United States for a relatively short time. 

Prior to 2018, the only state in which online sports betting was allowed was Nevada. In May 2018, however, the US Supreme Court struck down a federal law that had effectively banned online sports betting in all other states. This ruling paved the way for online sports betting to expand across the United States. 

Since then, many states have launched their own online sports betting platforms, and the industry is expected to continue to grow in the years to come and we can investigate the impact on business and consumers with this development.

The impact of the legalization of sports betting on businesses

The legalization of sports betting has had a profound impact on businesses in the United States. The most immediate and visible impact has been the proliferation of online sports betting websites and apps. 

There are now a potentially unlimited number of online sports betting apps and platforms available to American bettors. Some states will offer more licenses than others and some will have just a single state run online sportsbook tied in with lottery and government activities.

This increase in choices has been accompanied by an increase in the amount of money being wagered on sporting events. 

In what sounds a frightening number, Americans have wagered $125B on sports in 4 years since legalization In 2018

That began with a total of $6 billion on sports in 2018, since then sports wagers have risen to $57.2B in 2021.

The legalization of sports betting has also had a positive impact on the economy, as it has created thousands of new jobs and generated billions of dollars in tax revenue. 

Finally, the legalization of sports betting has led to the creation of new opportunities for businesses to advertise their products and services to potential customers. All told, the legalization of sports betting has had a profound and positive impact on businesses in the United States.

The impact of the legalization of sports betting on consumers

In the United States, the legalization of online sports betting is having a major impact on consumers. While there are concerns of individuals' financial well-being with the ability to gamble untold amounts that they may not be able to afford, the additional revenue in taxes gained by the states is being allocated to offset some of this with help and programs designed at helping people with gambling problems arising.

 It is also considered that as online gambling was possible previously with off-shore companies, and many problems were pre-existing which the states now have funds to deal with.

Prior to the Supreme Court's decision to strike down the Professional and Amateur Sports Protection Act in 2018, sports betting was only legal in Nevada. 

Today, however, it is legal in many states, and the number of people who are placing bets online is increasing rapidly. 

According to a recent report, the percentage of Americans who say they have placed a bet on a sporting event in the past year has nearly doubled since 2018 including 31.4m people betting on the Superbowl alone.

This increase is largely due to the fact that it is now much easier to place bets online. There are numerous betting sites that allow users to bet on a wide variety of sports, and the process is often very user-friendly. 

In addition, there are many promotions and bonuses offered by these websites that make it even more enticing for consumers to bet on sports. The bottom line is that the legalization of online sports betting has had a significant impact on consumers, and this is likely to continue in the future.

How states are benefiting from the legalization of sports betting

Since the US Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, four out of five states have legalized sports betting. States have collectively generated many millions of dollars in betting handle tax revenue. 

Betting handle tax revenue is just a small fraction of the overall amount of money bet on sports each year, but it's still a significant sum of money that can be used to fund gambling help programs and other initiatives. for example, the state of New Jersey has allocated long term,  millions from its betting handle tax revenue to gambling addiction counseling and treatment programs. 

The legalization of sports betting has also led to the creation of new jobs in the fields of gaming, hospitality, and tourism. According to the American Gaming Association, the legalization and regulation of sports betting will create more than 152,000 new jobs across the United States. 

In 2017 a report by Oxford University found that the legalization of sports betting would contribute between $10B to theU.S. gross domestic product (GDP) annually. That would certainly seem to be a good prediction at this stage.

Overall, the legalization of sports betting has been a positive development for states across the country that have adopted it; generating new tax revenue, created jobs, and funded gambling help programs that were previously unavailable.

What's next for the gambling industry in the US

The gambling industry in the US is evolving rapidly. In the past, most gambling activity was centered around brick-and-mortar casinos. However, the advent of online gambling has changed the landscape considerably. Today, more and more people are placing bets online, on everything from sports to casino games.

The future of the gambling industry in the US looks very promising. With the legalization of online sports betting in around 18 states as of the beginning of 2022, the industry is poised for significant growth.

 In addition, the rise of mobile gaming is making it easier than ever for people to gamble on the go. As the industry continues to evolve, we can expect to see even more innovation and growth in the years to come.