Sports betting has always been around; however, it used to be a hush-hush operation. Thanks to the federal government’s intervention, legal sports gambling has been in the public eye since 2018. Learning the economic impact of legalizing sports gambling can better illustrate how valuable it can be to everyone involved.
More Options Available
Before the Supreme Court overturned the 1992 federal law (Murphy v. NCAA) that banned sports betting throughout the country, the only way you could place a legal bet was by visiting a Las Vegas sportsbook, giving the big players—like MGM and Caesars— a stranglehold on the market. However, the landmark reversal opened the floodgates for other states to jump in on the action.
As 2022 ends, 40 states have successfully legalized sports betting or are attempting to. This growing trend opens the door for more companies to take advantage of the new business opportunities associated with it. It’s nearly impossible to watch a game without seeing a commercial for an online sportsbook, and the spirit of competition helps these companies thrive.
State Governments Collecting Tax Revenue
For state governments, the major appeal of sports betting is tax money. States have received more than $1 billion from sportsbooks since June 2018. As more states recognize the advantages of legalizing sports betting in-person and online, those profits will undoubtedly increase.
New York serves as an example of the tax revenue available to the state from mobile applications. The state collected $63 million in taxes during the first month of mobile betting in January 2022. California and Texas, two of the most populous states in the U.S., have yet to legalize any form of sports betting. When and if they do legalize it, you can expect them to reap the rewards.
Job Opportunities
With an abundance of sportsbooks jumping into the fray, it creates hundreds of thousands of jobs. Since the federal court reversed the decision, there have been over 200,000 jobs created, putting over $11 billion in the pockets of those employees. It’s hard to argue against an industry that adds nearly $23 billion to the US GDP as the sports gambling industry does, although many are still adamantly against it.
Massive TV Deals
Sports leagues are making money hand over fist thanks to the massive television contracts they get from networks. Sports are the ultimate reality TV program, considering they are the one true piece of unscripted television. Thus, the major networks are willing to fork over big bucks to acquire the rights to broadcast games.
The NFL is the biggest white whale for networks, so four of them coughed up nearly $10 billion for it. That figure will continue to rise because sports betting attracts more viewers. After all, no one wants to watch a bad game between losing teams unless they have some action on it.
The economic impact of legalizing sports gambling affects the head honchos in charge of these companies, your elected state representatives, the employees who cash their paychecks, and the bettors themselves.
