Sports betting is more popular than ever before. Americans wagered almost $120bn on sports events in 2023 and there are now 38 states that offer legal betting in some form. The industry continues to grow, and more states have proposed legislation to establish a legal framework for sports betting. So, what is fueling the surge? Here are five reasons why more states than ever are legalizing sports betting:
Economic benefits
One major driving force behind the proliferation of sports betting is tax revenue. The economic benefits are clear: data from the US Census Bureau shows that sports betting generated $505.96m in sales tax and gross receipts at the state level in Q3 2023, a 20.5% increase year-over-year. New York was the most valuable sports betting market during that period, with $188.53m in tax collected.
States that adopt a legal framework for online sports betting can expect to see a sizable upswing in revenue. The additional taxes and fees collected are vital amid a shortage of funding for public services, education and infrastructure. The returns from sports betting can fund various programs and improve the quality of life for Americans. It’s an enticing prospect and one of the main reasons more states are proposing legislation to legalize sports betting.
In addition to the immediate economic benefits, a thriving sports betting industry also boosts the local job market by creating new jobs. These jobs are diverse, covering everything from high-end tech positions at online casino sites to entry-level cashiers and floor supervisors at physical betting venues. Meanwhile, a state that legalizes sports betting is also an attractive destination for sports fans and tourists, who are more likely to visit and spend money.
Changing attitudes and perceptions
Another reason states embrace sports betting is that there has been a shift in attitudes and perceptions towards gambling. The views of the general populace often drive legislation, and the masses are generally open to a legal framework for the betting industry. A survey from the American Gaming Association found 85% of Americans are happy with the Supreme Court’s decision to strike down the federal statute that prevented sports betting.
The shift is not surprising in a country that values individual liberty. It has also been helped by the acceptance of sports betting as part of broader cultural norms, with major sports leagues and other forms of media now featuring betting in marketing and advertising. Sports networks and personalities openly discuss sportsbooks during major events in American football, baseball and soccer.
Sports betting platforms also sponsor many of the biggest sports leagues in North America, such as the NFL and NBA, which also led to mainstream acceptance. These partnerships increase brand awareness and fan engagement, and also boost revenue. It’s no wonder then that more people openly support regulated sports betting. This is a key driver in states pursuing legalized markets.
Technological advancements
There are now 30 states that offer online sports betting in some form. You can find an overview of states where online sports betting is legal in the USA at https://www.wsn.com/sports-betting-usa/. This recent expansion may only have been possible due to the major technological advancements that have taken place during the last 15 years. Online casino sites and sportsbooks now offer mobile-optimized, feature-rich platforms, which allow players to place bets on any device, at their convenience. It could be argued that the appetite for sports betting might not be as vibrant if the infrastructure for the mobile gaming revolution wasn’t in place.
In addition, players have greater confidence in the safety and security of these platforms. Recent regulation has vastly improved customer protection and transparency. Online sportsbooks usually offer a variety of payment methods supported by advanced encryption technologies. Players can now expect to make instant deposits and receive payouts within 24 hours. This excellent customer experience increases support for sports betting and helps the push to legalize the activity at the state level.
Competition and demand
The economic benefits have created a fear of missing out for states that continue to sit on the sidelines. The 2018 Supreme Court decision was seismic. For the first time, states outside of Nevada were able to legalize sports betting, and the early adopters have been reaping the rewards with substantial financial gains. States now recognize that they need to follow suit to remain competitive. A failure to pass legislation can lead to lost revenue, with many areas feeling the pressure of falling behind neighboring states.
Again, states are reacting to market demand. Scores of sports enthusiasts have voiced their desire on social media for legal and safe outlets to place bets. With so many states jumping on board, it has created a domino effect that has accelerated the pace of the rollout. If not now, when? Inaction for the next 10 or 20 years could leave states lagging behind.
Legal frameworks
Finally, more states than ever are legalizing sports betting due to the legal precedents set by other states. Just two states offered regulated sports betting before the Supreme Court decision. Six years later, there are now 38 states that have a legal and regulatory framework to follow to implement sports betting at scale. This framework can also be tweaked to suit the needs of a particular state. This autonomy makes legalization more appealing. When all these factors — economic benefits, shifting attitudes, tech advancements and growing competition and demand — are considered, it’s no wonder the future of sports betting in the US looks bright with more states planning to adopt legalization.
