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Americans bet $125B on sports in 4 years since legalization – New Orleans, Louisiana

New Orleans, Louisiana 2022-05-13 13:19:16 –

Americans have bet more than $ 125 billion on sports with legitimate gambling grounds in four years since the US Supreme Court ruling paved the way for providing it to all 50 states.

Two-thirds of the country’s states have legalized sports betting on Saturday’s anniversary of the decision on the case filed by New Jersey.

In just four years, the industry has worked on the daily lives of millions of Americans. From those who make money with the expectation of specific results, to those who watch TV broadcasts with odds calculations, to those who suffer from gambling addiction.

You don’t have to be a gambler or a sports fan to be affected. It is virtually impossible to avoid the tsunami in the advertising industry, especially on television and radio as well as other media. For example, FanDuel is the official odds provider for the Associated Press.

May 14, 2018, Supreme Court decided the case It started 10 years ago as the longest long shot in New Jersey. In a bid to overturn federal law, professional and amateur sports protection laws, sports betting was restricted to four states that reached the 1991 legalization deadline.

Senator Ray Lesniak, who filed the first proceedings against the federal government on this issue, to fund the state, protect consumers and attract experienced European betting companies to the United States. Said he acted on. He said it happened.

“I made a good bet for New Jersey and America,” he said figuratively. (Lesniak was also placed The first legal sports bet to win in his state, Choose France correctly to win the Soccer World Cup and win $ 400 with a $ 50 bet with 8 to 1 odds. )

Carol Corcoran, general manager of Van Duel’s online sportsbook, said:

Matt Kalish, President and Co-Founder of DraftKings, said: For those who like it, sports betting has become the number one far away. “

Take this into account to understand how much $ 125 billion is. Amount spent caring for pet food, consumables and veterinarians Last year nationwide Net income of American farmers last year.

Of course, much of that money was paid to those who won the bet. After deducting costs, sportsbooks typically hold less than 10% of the total bet to be processed. According to the American Gaming Association, a national trade association in the gambling industry, their revenue will be $ 8.8 billion in the first four years of legal betting.

The main reason for promoting the legalization of sports betting was to protect customers from the damage caused by unlicensed bookmakers, many of whom are active as part of organized crime. State regulations include strong consumer protection, and Watchdog regulators are ready to raid when they find a breach.

However, legalizing sports betting did not eliminate illegal gambling. Look at one of the many sports betting Facebook groups where unlicensed books from other countries are promoting their offerings. A suffering bettor complained on Wednesday that he asked his bookmaker to pay him after he won a big bet, but he only made the man disappear.

Sports betting has been, and still is, touted to state legislators as a new source of tax revenue. This is a particularly attractive option for trying out the financial era. According to AGA, state and local taxes have risen to $ 1.3 billion since 2018, but many states maintain that amount. Just drop it in the bucket Compared to their overall budget. Some states, such as New York, impose a 51% tax on mobile sports betting revenue. This is the rate at which operators say they are not sustainable in the long run.

As of Friday, 34 states and Washington, DC have legalized sports betting, 30 of which are in operation, according to AGA. Competing measures will take place in a November vote in California, which was the Holy Grail of sports betting. In California, the struggle between tribal casinos and commercial gambling companies obscures potential consequences.

No matter what you watch with your TV turned on, it’s likely to be flooded with sports betting ads. FanDuel, DraftKings, BetMGM, PointsBet, Bet365, especially Caesars Entertainment, are flooding the air to promote sports betting products.

In December, Bill Miller, President and CEO of the American Gaming Association, called the level of sports betting advertising “unsustainable arms race.” In some areas, there are calls for voluntary industry self-regulation of advertising to avoid the possible types of strict government regulation that exist in the UK.

Already, Massachusetts parliamentarians are considering banning sports betting ads shortly before, during, and shortly after a live sporting event. New Jersey State Representative Ralph Capto, a former casino marketing executive, said, “Overmarketing in this industry is obscene.”

Karish, president of DraftKings, said that “customer onboarding” requires the current level of advertising and compared it to the level of advertising for other new products such as cryptocurrencies.

“I don’t think it’s always eternal,” he said of the current level of advertising.

“The industry is still in growth mode,” said Corcoran of FanDuel, saying the company is happy with its current advertising levels.

Felicia Grondin, Managing Director of the New Jersey Compulsory Gambling Council, said: Barron’s Report This means that in 2020, $ 292 million was spent on sports betting advertising in the United States. A year later, it grew to $ 725 million.

With more exposure and easier betting on mobile phones (more than 80% of sports betting is done this way in the United States), more and more people are asking for help on gambling issues related to sports betting, Grondin said. Mr. says.

In 2018, the New Jersey Parliament’s 1-800-GAMBLER phone helpline received 9,490 calls, 5% of which were primarily due to sports betting issues. By 2021, the line received 23,977 calls, 23% of which covered sports betting.

“It’s anxious, alarming, and intensifying every day,” Glondin testified in front of the New Jersey State Representative this week. “Today, gambling is very easy. Just take out your phone and sit on the couch.”

Four years ago, sports bettors had few options, such as predicting the outcome of a game or player performance before the event began. Since then, the potential bets, or “market” arrays, have exploded. This is primarily due to the surge in in-game bets that gamblers can bet on in response to events as the game unfolds. This is the fastest growing segment of the fastest growing industry. Many sportsbooks now offer and encourage multi-event bets called parlays through free bets or refunds of lost bets.

And while more established sportsbooks aim to increase market share, the amount of money needed to enter and compete in the industry continues to grow, and many executives at large companies are less competitive. The other party merges or stops doing business.

FanDuel’s Corcoran said the immediate future is about the growth of the industry and its individual companies.

“We are fortunate to have access to about 38% of the American population,” he said. “But there are still millions of people who haven’t done legal sports betting yet. I want to be able to run where they are.”

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