Sports betting is legal in many parts of the world, including Australia and western Europe, with the biggest legal market in the U.K. However, even though it’s not legally allowed, the industry has exploded – there are $1.8 trillion illicit wagers worldwide, mostly in unregulated markets and on illicit betting websites. According to 2014 study, over 80 percent of sports bets are put on the black market globally.There are currently hundreds of betting sites and apps that allow bettors to wager, which has contributed to the advent of blockchain as a distinct exchange of money and to build on the existing system. For example , digital currency Electroneum wants to have its token be used by online gambling services while platforms like HEROcoin want to decentralise sports betting. Since sportsbooks typically charge high fees and end up with the housing winning, new platforms like HEROcoin provide peer-to – peer betting and provide clarity in the flow of money and terms.
Legal Sports Betting May be A $150 Billion Company
In the U.S. alone, illicit sports wagers are expected to hit from $50 to $150 billion. For the sake of contrast, Nevada, the only U.S. state that had allowed sports keepers, reported $4.8 billion in 2017. And, note that Britain, with a population of 65 million and a much less diverse sporting industry, yielded $20 billion in wagers for the 2017 fiscal year. Worldwide, the most popular sports to bet on are professional football and basketball (see below).
Chart of most popular sports to bet on.
Fantasy Sports vs. Daily Fantasy Sports (DFS) vs. Conventional Sports Betting
Before we begin, it’s necessary to explain the terms fantasy sports, UFABET regular fantasy sports, and traditional sports betting. Both fantasy sports and traditional sports betting are common types of gambling based on sports results, but there are key differences. Fantasy sports betting is legal, for one. And the rivals are other individual competitors in fantasy sports, rather than bookmakers, as in traditional betting. A community of human players, known as a league, choose from real-life athletes in fantasy sports to create fictional teams. The team is assigned points on the basis of each athlete ‘s results during the season. Your team must have won the most points over the whole season in order to win, which usually lasts for a few months.Daily fantasy sports (DFS) are a common subset of fantasy sports. Instead of a season, DFS lasts for a day. You draw your players in the morning, and you’ll know who wins when the games are over later that afternoon or evening. While leagues are usually composed of friends in normal fantasy sports, with DFS you play with random individuals you are paired with. The pot that wins will hit millions of dollars.Although fantasy sports were legal, daily fantasy sports were more of a grey area. In 2006, fantasy sports became legalised because it is mainly an activity among mates, not about wagering cash, and is a game of talent rather than chance. In addition, players find out whether they win or lose in a matter of months, as is likely in conventional gambling, not in minutes or even seconds. On the other hand, DFS does not have any of those reasons that function with it. We will cover the two main DFS pages, DraftKings and FanDuel, later in this post.
Implementation of legal Sports Betting May Not be Immediate
The decision related to a case brought by New Jersey, which agreed to be enforced by June 2018. Other states would, however, need to consider the problem for themselves. Surely, states have an opportunity. Legal sports betting, focused on income tax on winnings or as an excise tax on casino revenue minus those winnings, will generate additional tax revenue. The American Gaming Association has projected that it will raise $8 billion in local taxes if passed in 40 states, create hundreds of thousands of jobs, and add $20 billion to GDP.Nevertheless, there will be many licencing, taxing, as well as prospective criteria from leagues to figure out. Specifically, it would also be important for states to decide who to tax and what the appropriate rate is. Nevada currently imposes a tax of 6.5 percent, while Pennsylvania has imposed a tax of 34 percent, and New Jersey intends to tax 8 percent of sports betting at casinos and racetracks and 12 percent of online sports bettors. States will still need to find out where gambling should be allowed and whether online gaming can be permitted. Another aspect to consider, such as with sports leagues, individual clubs, and bookmakers, is who to share revenue with. According to ESPN, conservative projections suggest that eight or nine states will have legalised the full spectrum of sports betting in casinos, racetracks, and other locations by the end of 2018, which could rise to 12 or 14 by the end of 2019. Control, however, is hardly final. In contrast with decentralised laws from 50 states, both the NBA and NFL have urged Congress to pass federal legislation to standardise enforcement.
Gambling games and state rules
Who Wants a Piece of the Betting Pie for Legal Sports?
There will be a slew of new possibilities for emerging and legacy companies alike (to be discussed later) in addition to the obvious beneficiaries, casinos, racetracks, and online wagering websites. Even businesses such as YouTube, Twitter , and Facebook can see new streams of revenue. Significantly, their slice of the pie is pursued by sports leagues. Many leagues are trying to receive a 1 percent fee on bets made on their games, including the National Basketball Association ( NBA) and Major League Baseball ( MLB). This is part of a broader drive by leagues for “integrity fees,” with leagues claiming that sports betting is a subset of their games and that, as a result of sports betting, they would have to invest in tracking and examining ethical issues.Sports operators and sportsbooks, of course, insist that the games are in service regardless of their existence. The casino lobby also opposes the payments, claiming that the increased competition and interaction with games would already help the leagues. The American Gaming Association, which campaigns for the casino industry, has suggested that this 1 percent charge will only amount to 20 percent of sportsbook income because, after paying out to winners, they hold just 5 percent of wagers.
What’s to be expected? Legal Sports Betting Consequences
Increased awareness and promotional spending for sports watching
From recent Nielsen research, consider this fact: “The average NFL fan who is a non-bettor watches about 15-16 games a year.” 45-50 games a year are watched by the average NFL fan who is a bettor. And, according to the same report, sports bettors made up 25 percent of the TV audience of the NFL in 2015, but accounted for 47 percent of all minutes viewed. Thus, it is fair that encouraging audiences to become sports bettors legally would make them more likely to watch sports.For the sports television industry, which faces pressure from streaming platforms , social networks and video games, this ruling is a welcome change. Many sports fans have not traditionally been able to watch games without cable subscriptions, particularly “cord-cutting” millennials. Sports consumption and interaction are likely to increase with this new shift, as fans will have a fresh, vested interest in performance. Hyper-engaged fans are likely to contribute to an increase in spending on advertising. For example , it is estimated that British betting firms put 20-30 percent of their revenue back into ads, mainly on television.
Legal sports betting can also revolutionise the way sports are consumed by Americans. Imagine betting windows inside stadiums; casino ads everywhere the eye can see, as they are in Britain’s soccer stadiums; in-game betting on your phone while sitting inside an arena (or while sitting with your family at dinner); and a crop of new shows on ESPN and other sports networks dedicated to betting lines, “according to a New York Times article.”
For newcomers and established giants alike, new prospects
Legalized sports betting is likely to lead both VC-backed tech startups and legacy media companies to an increase in new services and applications. Sports outlets that already discuss gambling lines can now use subscriptions or ads to monetize it, or even reap rewards for advertising affiliate links that send fans to sportsbooks. A new world of content, including statistical analysis and news, will probably also be created. As NeimanLab notes, there will be a seismic shift from sports reporting to “production information” for entertainment purposes, content that one reads to help one make more money. Sports analysis will assist bettors make smarter, more informed sports betting, just as reading the Wall Street Journal helps stockbrokers choose better stocks. For example, Bleacher Report, a popular sports site, could become a platform for bettors for programming shows and statistics.
This outcome and potential changes to the business model have probably been anticipated by existing companies in the space, both large and small, building their technology and user base in preparation. We have already seen many companies prepare for a world of legal sports betting, according to CNN, but now the shackles are off with the legal clarity offered by the Supreme Court. “Take, for example, in-game sports betting startup WinView, which raised $12 million in its latest funding round, the company enables fans to make real-time free wagers and can leverage its existing base of 130 million.” And, if artificial intelligence sports prediction start-ups such as Stratagem and Unanimous A.I., it would not be terribly surprising. From the move, see a boon. The potential for legalisation of sports betting was also likely a significant impetus for the decision of Turner Broadcasting to allow NBA fans to stream a-la-carte live games, enabling fans to watch games at a prorated price instead of paying up front for the full cable subscription.
How will it work?