The legalization of sports betting in the United States was a long time coming, but it’s now here, thanks to Adam Silver, the new NBA commissioner. After David Stern’s retirement, Silver recognized that sports gambling is a reality and it’s a better option than rampant illegal gambling. Silver argued that sports betting is a safer option than illegal gambling, and it would also help leagues. In 2014, Nevada became the first state to legalize sports betting, followed by New York, Pennsylvania, and Tennessee. In the meantime, the NBA banned sports betting for four years before New York and Tennessee legalized it.
Tennessee is first state to approve online/mobile-only sports betting
While the House of Representatives did not ratify the bill, the Senate was more favorable. A committee vote of nine-to-two approved the bill, sending it to the floor for a final vote. The bill would regulate sports betting platforms only and not retail sports betting facilities. The state is looking to generate $150 million a year in sports betting revenue, taxing it at 22.5%.
The new law will take effect on July 1st, 2019. While the legislature has yet to draw additional regulations and issue licenses, there’s a good chance the sports betting legislation will pass. If so, mobile providers will be able to accept wagers from residents 21 and over within Tennessee’s borders. Users will be able to download official apps from licensed providers or visit their websites.
DraftKings is first company to offer in-play betting
DraftKings is a digital sports entertainment and gaming company based in Boston, Massachusetts. The company was launched in 2012, just three years after rival fan site FanDuel. Its Boston-based founders quickly found investors and raised $1.4 million in seed funding, making it the first company to offer in-play sports betting. The company has partnered with MLB, NFL, NBA, and NHL, and owns the Vegas Sports Information Network.
In 2018, New Jersey became the first state to legalize sports betting, and DraftKings partnered with the Lago Resort & Casino in Waterloo. It offers retail and online sportsbooks, electronic sports, daily fantasy, and NCAA college football. As a result, it has a growing presence throughout the United States. Its business model makes it easier for players to find an appropriate product for their needs, and its emphasis on fairness and safety is apparent.
New York is last
New York sports betting fans have been in for a treat in the spring. Golf and auto racing are both heating up, and tournaments are tipping off, providing a plethora of wagering opportunities. Also, spring is one of the best times to bet on golf, as the top players tee off on iconic courses. There are also several ways to bet on sports in New York, including online.
The legalization of sports betting in New York State has had a positive impact on the state’s finances. Sports betting operators are required to pay a 51 percent tax on gross gaming revenue, which is the difference between bettors’ money and their payouts. Since the launch of sports betting in the state in July 2018, the state has collected more than $78.5 million in tax revenue. Most of this money is used to fund education. In 2018, the state budget office estimated that sports betting in New York would generate $49 million in revenue during the first three months of 2022. But that estimate has been revised up to $110 million for the same period this year. Mobile sports betting is expected to generate a similar amount of revenue, with New York projecting to clear up to $400 million in annual tax revenue.
States that have legalized sports betting
While the US is increasingly becoming a legal market for sports betting, not all states have made the necessary steps to make the activity a reality. Many remain reluctant to legalize sports betting due to lack of consensus over a structure that benefits all parties involved, while others have philosophical objections to the idea. Still, some states have legalized online sports betting and daily fantasy sports. Below are some of the states that have legalized sports betting.
Massachusetts lawmakers have been working on a wagering bill that would allow adults to place a bet on college and professional sports. The bill would have allowed bettors to place wagers at state casinos, but the main sticking point was college sports. Despite support from the House, the Senate took issue with adding specific sports betting language. Regardless, the legislation is a step in the right direction for the state. In the meantime, sports betting in Massachusetts is still a way off.