Opinion: Where US sports betting stands three years after PASPA fell
Monday May 14, 2018was probably the largest sports betting event in the United States in the past 100 years.
The 2018 Supreme Court calendar featured a number of high profile cases. They touched on important social issues like Masterpiece Cakeshop. They dealt with important commercial issues such as the internet sales tax case. South Dakota versus Wayfair.
However, for readers of this website, it is likely that no Supreme Court case this year has been larger than the ruling in Murphy versus NCAA.
The end of a long struggle
The Supreme Court ruling that the federal government could not tell states which laws to keep on the books sparked the end of a legal battle that officially began towards the end of the year 2011. The only ones win the state of New Jersey Had was the only one that mattered in the end.
Much has changed in the three years since that May morning. There have been many good ones, some bad ones, and still a lot of questions about what’s to come.
For decades, the major American leagues argued that legalized sports betting would harm the sport. It was the reason that the NCAA and the country’s four largest sports leagues sued the governor Chris Christie and the other defendants in the New Jersey case.
The quintet of sports organizations argued that if US sports betting were legalized, they would suffer irreparable harm. Many of the same arguments have been made to aid the adoption of PASPA back during the 1990 and 1991 Congressional hearings. There was also a fear of a raging epidemic of child gambling.
Three years later, all four major sports leagues have joined the gambling industry. The leagues have now discovered what academic research has long established: Sports bettors are among their most dedicated consumers. They watch more sports than people who have not aroused any interest in the competition.
By and large, the introduction of sports betting has been positive for the sports leagues. While the NCAA continues to be reluctant to take up sports betting, individual colleges have seen an opportunity to make new friends and fill some budget gaps without charging tuition or fees.
Efforts to achieve uniformity
One of the most interesting factors in the expansion of sports betting is the desire of states to be alone, which means that each state has effectively passed its own laws on sports betting. Usually when a subject is as hot as sports betting we see model laws or even those Uniform legal commission Enact legislation.
While there are similarities and some stakeholders have tried to promote model laws, for the most part states have done their own homework, for better or for worse.
Of course, some of this is the result of the diverse game landscapes across the country, but there seems to be little interest in a collective approach.
The lack of a collective approach to regulating sports betting is not due to lack of lack, at least from the point of view of some sports leagues that have on occasion pushed Congress to pass laws with favorable provisions. Federal legislation has not gone anywhere so far.
Is there still a slowdown coming?
The expansion of sports betting appears to be due to a slowdown. The rapid expansion appears to have exceeded even the most optimistic of expectations, but one factor supporting the slowdown is the fact that many remaining states face significant obstacles.
While a deal in Florida between the state and the Seminole tribe shocking the gaming world, there are a number of questions that remain open about the new deal. That could mean trouble for the hoped-for expansion in states like Californiaor for mobile betting in Oklahoma.
Is the money real?
Another fact that has quickly arrived in the world of sports betting is that it was worth it to be known to consumers. FanDuel and DraftKings used their daily fantasy platforms as a launch pad for sports betting detection.
The lead with consumers has proven to be beneficial as both other established brands and emerging brands are lagging behind.
While barstool Brand popped up on the block as a new kid (takeover for Penn National,) Worth seeing is the question of how many brands will survive. With states like Ohio When there are more than 40 licenses available, where does the money come from to support these 30-35 other brands?
Sports betting did about $ 1.5 billion in revenue in 2020 after American Gaming Association. With giants like DraftKings still not making a profit, the question arises of how many competitors the market can support.
There were growing concerns in the United Kingdom about increasing problems with gambling. Given that many states appear to be neglecting adequate funding to address problem gambling due to newly passed sports betting legislation, it appears that much of the regulated sports betting market could be put on a collision course without change.
One of the advantages of the regulated market was that it should shine the light and provide resources for the treatment of problem gambling. So far this has not been sufficiently implemented.
There’s more to come
In the years to come, we will likely see more than 40 states with sports betting in some form or another. The speed of expansion has been remarkable, but much remains to be done.
There is a need to provide better protection for people with gambling addiction, as well as modernizing protection against match-fixing and passing laws that encourage rapid response to threats rather than retention of information.