Legalization of sports betting in the United States is a hot topic. The question is, will sports betting in the United States impact the advertising revenue of sports teams? There are many answers to this question. But first, we need to understand the history of sports betting. When did sports betting become illegal? What are the current legal statuses of sports betting in the U.S.? How does legalized sports betting affect advertising revenue? And who is affected by legalized sports betting?
Legalization of sports betting in the United States
The question of whether legalizing sports betting in the US is possible is a hot button issue right now. Several states have passed legislation to permit the activity. Some have legalized it outright, like Nevada and Pennsylvania. Others are considering legalizing it to some extent. In California, a competing measure is on the November ballot. Neither side is clear on whether it will pass or not. However, ads for sports betting sites can be found on many television shows. They include FanDuel, DraftKings, and BetMGM. Caesars Entertainment is another company that has voiced its interest in legalizing sports betting.
Since the Supreme Court decision in May 2018, other states are considering legalizing sports betting in their state. Various state legislatures are also considering the issue. A new bill is expected to be introduced in 2022 to allow sports betting in various places. This bill would allow regulation of the industry through a newly-established corporation. However, it was ultimately denied by the Senate in January. Despite the delays, the new law allows people to place wagers on sports in several places, including online and at Wrigley Field. It also allows wagers on college contests.
Current state of legal sports betting in the U.S.
The Supreme Court struck down the federal ban on single-game wagering in 2018, and nearly two-thirds of US states now allow legal sports betting via mobile apps and in-person sportsbooks. Before the Supreme Court ruling, interest in legal sports betting was already growing in the US. Currently, the state of North Carolina limits sports betting to tribal casinos, while New Mexico offers online sports wagering and allows in-person wagering at state-licensed sportsbooks. The COVID-19 pandemic is also pushing more states to legalize sports betting.
New Jersey has legalized sports wagering after a narrow vote in the state legislature. The state will allow both retail sports betting and online sports betting. But unlike in other states, New Jersey will not launch legal sports betting until at least 2020. It will take another 45 days for the federal Department of Interior to approve the updated compacts. Meanwhile, Texas will continue to reject all forms of gambling, and states like Utah have written their anti-gambling position into their constitution.
Impact of legal sports betting on advertising revenue
Legal sports betting has a direct relationship with revenues. While some states may opt for low tax rates to discourage black market gambling, most will aim to maximize revenue. While sportsbooks will likely benefit from higher advertising revenue, many will also lose some of their revenue. In addition, some states may seek to impose sin-based taxes or special tax regimes. It’s difficult to predict how the new laws will affect the advertising industry, but the public sector is almost certainly going to benefit.
Legal sports betting will also create a slew of new services and applications. Currently, the market is relatively small but expected to grow exponentially, particularly in the nascent New York market. It’s estimated that about 110 million people live in the state, and legal sports betting could monetize that market. It’s possible that sports betting advertising will make the news and content industry more profitable, as sports analysis will be used to make smarter bets.