According to an article in CNBC, as many as 40 states may be offering legal and regulated sports betting within five years. Soon, half of all Americans will be living in a state that does or soon will offer sports gambling.
The trend follows the monumental decision by the Supreme Court in May 2018 to overturn the Professional and Amateur Sports Protection Act (PASPA). At present, sports betting has passed or is pending in 13 states.
Highlights of the article include the following facts:
- More than 24 states are considering passing their own sports betting legislation (or activating laws on the books).
- By the end of 2019, 35 states will be considering these bills.
- By the end of 2020, half of all Americans will be living in states with sports betting.
- While revenue from legalized and regulated sports betting was $261.3 million in 2017, that number jumped 65% to $430.2 million lat year.
- Since PAPSA was overturned, sports books have contributed more than $60 million in taxes to their states and cities.
When we consider how fast the industry has grown in just this year alone, revenue should increase even more dramatically in 2019.
The article points that it is not an easy journey for a state to make until it manages to get a legal sports betting industry up and running. There is the intricate process of getting all interested parties on the same page, taking account the different stakeholders such as tribal casinos, commercial casinos, lottery vendors, racetracks, card rooms and more.
Some states require a change in their constitution, which means getting enough votes in a referendum.
Licensing fees and tax rates must be set, lawmakers must be convinced and a regulatory board has to be appointed.
Even when a state finally passes the necessary laws and starts offering sports betting, it may still not make the estimated revenue expectations.
Only Delaware and New Jersey are expected to meet their estimates.
West Virginia and Rhode Island are currently bringing in a quarter of what is needed to meet their projections. Mississippi is doing a little better with bringing in half of what was projected and Pennsylvania two-thirds.
