In May, 2018, the US Supreme Court opened the floodgates for legal and regulated sports betting in the country. New Jersey won the right to legalize sports betting in the state, essentially having the court overturn the Professional and Amateur Sports Protection Act (PASPA).
The Garden State and others pioneered the start of the regulated US sports betting market. Today, two years later, fourteen states legally allow some forms of sports wagering. We should see another six states establishing their own markets in the near future, as they put their final touches to regulation and bureaucracy issues.
What have operators learned about US sports betting in the past 24 months?
For one, we see that it’s not easy being a sports betting operator in US 2020. Even the most established and experienced operators are finding it difficult to set up shop in states where sports betting is legal – both from financial and practical perspectives.
Most states have slapped a huge price tag on the right to offer sports betting within their borders. Only those operators that can come with lots of cash and can weather the expectation of not turning a profit for the first few years, are able to even contemplate paying the license fees required of them.
On the other hand, operators understand that these are fast-growing markets with a lot of potential, and if they want to get a foot in the door, they will need invest – even if they don’t turn a profit in the beginning.
The other problem facing operators is on the practical side. The Supreme Court decision allowed individual states to decide on their own sports betting landscape. There are 50 states in the US, each one with its own state regulatory frameworks. In some cases, gambling laws also differ from county to county. In states where sports betting is now a reality, operators have had to navigate these frameworks and adapt their business models. This is an issue that operators simply have to accept and try to get through successfully. It seems that federal legislation is still a long way off and the situation will remain as it is for years to come.
