Overview of the US Legal Sports Betting Market
Sports betting has been a major economic booster for the United States since it was legalised. Hence, you can’t help but agree with the Supreme Court’s decision in 2018 to overturn the 1992 federal ban on sports betting in the country. Nevertheless, since there have been a lot of positives from this development, some downsides exist as well. It’s probably why some states have still refused to legalise it. We will provide an overview of sports betting in the US market to help you understand how the states stand regarding this act.
States that have Legalised Sports Betting in the US
After the 1992 Professional and Amateur Sports Protection Act was outlawed, individual states became responsible for legalising and regulating betting activities. They can now create and enforce laws that bettors and betting companies must abide by. States like New Jersey, Delaware, Pennsylvania, West Virginia, and Mississippi immediately went to work, allowing regulated sports betting. Others had to deliberate before joining the list of states providing legal sports betting.
Now, the US can boast over 30 legalised sports betting states, with over 20 allowing players to wager online.
“Sports wagering is a pretty new thing in the market… PASPA at the federal level was overturned in May of 2018. Since then, 36 states and the District of Columbia have already legalized some type of a sports wagering program” pic.twitter.com/5aG9cWF52M
— KY Sports Betting Now (@SportsBettingKY) February 28, 2023
In other words, some states offer in-person and online betting, while others only provide in-person betting. For instance, a few retail sportsbooks are already available for in-person betting in North Carolina, with no online betting. However, the state has proclaimed its willingness to expand sports betting. A few North Carolina sportsbook apps have been set in motion for when they go live online later in 2024. This way, the state can generate revenue and create opportunities for the people.
Despite the growth and popularity of sports betting in the US, some states have yet to legalise it for various reasons. They include Alaska, Missouri, Alabama, South Carolina and Texas.
How Big is the Sports Betting Market in the US?
Without a doubt, legalising sports betting has positively impacted the US economy. It has increased the revenue in states where betting activities occur. Betting has also provided job opportunities for its citizens.
According to the US Census Bureau’s Quarterly Survey of State and Local Tax Revenue, QTAX, there was a 20.5% increase in sports betting in the third quarter of 2023 compared to the same period in 2022. Also, QTAX reported that New York had the biggest share of the country’s tax revenue during that period. This was a whopping $188.53 million.
US Sportsbooks recorded an outstanding achievement in the revenue generated in 2022, as revealed by the American Gaming Association. The revenue earned was $7.5 billion, a 75% increase over 2021. These figures surely show how massive the sports betting market is in the US. The coming year could improve with more states planning to follow suit by enacting laws that legalise sports betting.
What to Expect When Online Sports Betting Launch in North Carolina
Bettors should expect to be able to bet on a wide range of sports when online sports betting launches in North Carolina. Apart from betting on the NBA, the NFL, the MLB, and the NHL, punters may also be able to bet on other sports. You will find games on soccer like the MLS and other top soccer leagues in the world, such as the English Premier League. You should also expect to find betting markets in golf, MMA, tennis, and boxing. It may also be a good time to back the UNC Tar Heels in the 2024 March Madness.
Punters may also begin to see ads on their phones from certified sports betting companies when they visit Google-related sites. This comes after Google’s update to its gambling and games policy on February 8, 2024, which confirmed their approval of pre-launch ads while all state-licensed entities are to secure certification before promoting sports betting services.
We’ve provided an overview of the US sports betting market. It’s evident that this market has witnessed tremendous growth in five years, with over 30 states already legalising betting. Various stats pages have also predicted further growth and increased revenues in the coming years. Generated tax revenue can also be increased from the 20.8% generated in the third quarter of 2023. You should also expect the launch of sports betting in some states in 2024, especially in North Carolina.