American States Turn Rival As Sports Betting Gets Nod Across The Country
There is not enough sports betting pasture for everyone in the new world today, as Spots betting legalization has led to the establishment of a rat race of sorts in the US. With as many as 20 states having already introduced sports betting legalization bills in their respective senates, American states have turned rivals from friends as millions of dollars in sports bets hang in the balance.
The sports betting market in the US has been lucrative from day 1. According to reports from the American Sports Betting Coalition, US citizens spend a whopping $150 million a year in illegal sports betting. With states legalizing the game, the revenues to be earned are expected to double, if not more. Already, states like New Jersey have earned $21.2 million in sports betting revenue and an additional $2.45 million from taxes in 2018. Pennsylvania raked in $500,000 in just the first two weeks of legalizing sports betting in the state. Now, based on estimates, states like Washington DC are expected to bring in $92 million in revenues over the course of the next four years, once sports betting hits the floors in Nationals Park and Capital One Arena in 2019. With bettors in DC expected to get access to mobile sports betting in the near future and with DC restaurants and pubs having the prospect to apply for sports betting licenses, the future looks bright for the state.
But this may be the thorn that irks other states, say experts. According to Lucy Dadayan, senior researcher at the Urban Institute in Washington DC, pan-American sports betting legalization will offer bettors the opportunity to place their sports bet anywhere in the country. With there being no assurance of business all-year round, states may go all-out to eliminate competition in an effort to not lose out on high revenues. This could be something that ultimately drives down the entire industry’s revenue across the country.
The only solution to this problem says Dadayan, is to have in place carefully structured sports betting regulations and taxation policies. Managing director at Eilers and Krejcik Gaming, Chris Grove, seconds Dadayan’s point. He says that any state charging beyond the 20% tax cap may actively discourage legal operators from investing in their markets, thereby not offering any out-of-the-box sports betting services to bettors. It may also encourage to seek budget-bettors to go in search of nominally-priced services. If this happens, bettors will simply seek fresher pastures in other states, taking their valuable cash with them.