With the rise of popularity and legalization of sports wagering across the country, people have more questions than answers. In an ongoing series of special quarterly reports, the ScoreMetrics Lab will be keeping tabs on this ever changing landscape as time goes on. For a much fuller, more in depth report of these law changes and how they are effecting you in a dramatic way, we highly recommend you read John Todora’s new book “Zero Correlation Investing – The ScoreMetrics Secret”.
Sports betting has been in the national limelight in the United States ever since the Supreme Court ruled in favor of New Jersey in the PASPA case in May 2018 and, for this article, we asked our ScoreMetrics Lab to dive in and get all the info available.
What’s the current legal status of sports betting nationwide? What will it look like in the future? And who’s actually gambling on sports? Read this article to find out!
Current legal status of sports betting
After New Jersey won their case in the Supreme Court, any state has had the right to legalize sports betting.
14 states currently have full-scale legalized sports betting. You can already place bets in Nevada, Delaware, New Jersey, Mississippi, West Virginia, New Mexico, Pennsylvania, Rhode Island, Arkansas, New York, Iowa, Oregon, Indiana and New Hampshire.
7 more have recently passed a bill but betting operations aren’t live yet. Montana, Washington D.C., Tennessee, Illinois, North Carolina, Colorado and Michigan will probably have legal sports betting markets in operation at some point during 2020.
As many as 24 states have recently introduced a bill for legalized sports gambling but haven’t made decisions yet. Out of these states, California, Arizona, Texas, Alabama, Georgia, Florida, Maryland and Connecticut are currently projected to legalize sports betting in 2021.
That means that 45 states have already either legalized sports betting, have passed a bill, or are looking at the possibility of doing so in the near future. That’s a striking change from early 2018 when Nevada was the single state that had a permit to offer sports gambling services.
The financial incentives for legalizing sports betting are substantial. The American Gaming Association estimates that a reasonably taxed sports betting ecosystem that’s available online could have an annual economic impact of $41.2 billion.
Only Alaska, Idaho, Nebraska, Wisconsin, Wyoming and Utah are not currently working on any legalization activities. Utah’s state constitution is against all forms of gambling, so it’s hard to see them taking an opposing stance any time soon. The rest of the states on this list have laws that prohibit sports betting, which would need to be repealed before sports betting could be made available.
With those exceptions, we’re probably looking at sports betting being legal in the majority of states within the next few years.
To follow what sports betting legislation currently looks like in your state, take a look at the data from ESPN.
What will sports betting look like?
So, what can we expect the sports gambling landscape to look like in the near future? Nevada is often referenced as the place where you should look into if you want to understand what sports betting might soon look like in your state. The market has existed there for decades and many states will probably try to at least learn some best practices from Nevada.
Another interesting comparison is the European sports betting market, which is very mature. Mobile and live betting have been around for at least a decade in most European countries. The competition between bookmakers is ferocious, leading to better products and odds for the bettors.
The potential of the U.S. sports betting market is enormous for bookmakers. William Hill, the London based bookmaker from the United Kingdom saw this already in 2018 when they made their major U.S. expansion. When the legal status of sports betting solidifies, expect all of the major players from around the world to show up and new ones to pop up.
What does an American gambler look like?
According to the statistics compiled by the American Gaming Association, 39% of U.S. adults are current or potential sports bettors. That’s about a 100 million people. It’s needless to say that the interest towards sports betting is widespread and the potential audience is diverse.
Gambling and sports betting are now seen as a normal pastime. 88% of American adults view gambling as an acceptable form of entertainment and almost 80% support legalized sports betting in their states. For comparison, participants in the 2011 national poll by Fairleigh Dickinson University’s PublicMind were divided 50/50 between those who approved and those who opposed the legalization of sports betting in their states.
Most people approach sports betting from a casual gambling angle. They put a little bit of money down on their favorite team to spice up the matchday experience every once in a while. It’s a fun pastime that involves little to no research or strategy.
This is a great thing for those of us who see sports betting as an investment instead of a gamble. The market is tuned to the note of the casual gambler and it reacts to how these people lay their bets. That’s why an analytical investor armed with the right strategy can find patterns that provide a good ROI over time. And that’s exactly what we’re doing here at the ScoreMetrics labs.
Whether you are a calculated investor or a fun-loving gambler, good times are ahead.
Keep an eye out for future reports on this quickly expanding market from the ScoreMetrics Lab and don’t miss out on your opportunity to get your foot in the door to Sports Investing by reading John Todora’s new book “Zero Correlation Investing – The ScoreMetrics Secret”.