Why Sports Betting is Tops in The USA

mobile sorts betting sites
Spread the love

There’s no doubt that betting on online sports in America is booming. Perhaps it’s an understatement especially if we’re talking about a $15 billion market cap by 2025.

Market analysts believe gambling at casinos online is part of the mix too. In other words, we’re looking at a rise of more than 27% when we compare it to the current levels.

However, as much as $10 billion of that figure will come from betting on sports at sportsbooks. Can you see why online sports betting is the next big thing in the States? We can.

Why Online Sports Betting Is On the Rise in the USA

Several factors led to the uptick in betting on online sports. Bettors and casino gamblers have more disposable income than ever before. In addition, the Department of Justice (DoJ) played a major role by amending its draconian laws.

The straw that broke the camel’s back was when the US supreme court overturned the ill-conceived PASPA Act of 1992. This opened the proverbial floodgates for legalized betting at sportsbooks. Many US states weren’t napping and quickly applied for licenses.

Will They tax it to Death?

Needless to say, the tax revenue gained from online sports betting streamed into state coffers. Some US states impose a hefty tax on sports betting.

Approximately 30 states including the District of Columbia have some form of legalized sports betting. Some of them impose a tax that’s below 10% which is more in line with the industry’s norm.

However, states like Nebraska and Maryland have taxes of up to 15%. Then again states like Delaware and New Hampshire charge a ridiculous 50% on sports wagering! New Jersey one of the first States that made casino gambling possible charges 13% for bets on sports.

So, this makes sports betting a lot rosier in New Jersey.

Is Sports Wagering on the Up?

If we look at the recent figures. Online sports wagering is going from strength to strength in the States. For the previous fiscal year, the Pennsylvania Gaming Commission reported a $3.9 billion gaming revenue.

Most of the gambling and sports betting revenue came from wagering online. Thanks to the Covid pandemic bettors were more than happy to register accounts at offshore sportsbooks such as MYBookie; from the comfort of their homes.

The thorn in the side of sports wagering and online casinos in the United States is the 1961 Wire Act. The Wire Act is responsible for why most states in the US haven’t legalized online sportsbook betting yet.

Basically, the Wire Act only applies to bets on sports only. More to the point, the US Department of Justice changed its ruling yet again. Thus turning the entire online wagering industry on its head again.

The good news is that the original 2018 interpretation of the Wire Act enables Multi-State Internet Gaming agreements. The states we’re talking about are Delaware, Nevada, and New Jersey. Furthermore, these three US states share online poker players as well.

That said, interstate sports betting and online casinos are a different kettle of fish. Let’s just say, they’re more complicated.

New Jersey is the only US state that allows online casinos and games. Rumour has it that US State Attorney General could vacate the Wire Act. In hindsight, the laws that describe the Wire Act are still vague at best.

What’s Going On with the Wire Act?

The purpose of the 1961 Wire Act was to stop organized crime from controlling the illegal sports betting business. As of today the total sports betting market in the USA is worth a gargantuan $150 billion per year.

Even though the sums in the 1960s weren’t even remotely close. The mob still made a pretty penny from illegal horse racing, casinos and sports wagering.

But, more importantly, the Internet made the Wire Act obsolete. The worst part is that the DoJ still sees the Wire Act as the “gold standard” despite technological advancements.

Let’s forget for a sec about the shenanigans still going with regard to the Wire Act. The overriding principle is the revenue states can earn from betting on sports at legal sportsbooks.

It’s a case of money talks and BS walks. Or, it can be the lack thereof as some US states continue to drag their feet.

We’re upbeat that the sports betting business is going to rule the roost in the USA. Here’s why. There will be a significant change in fiscal changes to sports betting policies.

The state or the federal government won’t ignore the revenue from a $150 billion per annum sports betting market. They want in on the action because it’s revenue for them!

Final Word

Sports betting is here to stay in the USA and it’s booming. Whether those that wield the rods of power like it or not.

Finally, it will be foolish to dip out on the possible tax revenue legal wagering at sportsbooks have to offer. Hence the reason we’re confident many US states will want a slice of this multi-billion dollar pie.