Across the globe, particularly in Europe, progressive sports betting regulations are somewhat taken for granted.
After all, both on and offline wagering has been legal for years in places like Britain, whilst there’s no national or local laws restricting online wagering activity.
This hasn’t always been the case in the states, however, which has only recently begun to reverse laws banning sports betting at a federal level. Last year saw the Supreme Court strike down the 1992 Professional and Amateur Sports Protection Act (PAPSA), for example, with a number of states having since legalised sports betting by utilizing their own jurisdictive powers.
In this post, we’ll ask why this is good news for some U.S. state economies, as well as EU bookmakers, whilst appraising the impact of monetising iGaming in jurisdictions such as New Jersey.
How Sportsbook Legislation Will Benefit New Jersey
New Jersey has always been ahead of the curve when it comes to gambling, as it was amongst the first states to legalise online poker back in 2011.
In June of last year, it also became one of the first states to react to the Supreme Court’s ruling, by opening two retail sportsbooks within its borders. Since then, the market has exploded, and now boasts 15 sportsbooks apps and 10 retail books at various casinos.
In more than a year since sports betting was permitted in New Jersey, it’s fair to say that this sector has delivered significant returns and provided a huge shot in the arm for the state’s economy.
More specifically, $246,920,990 had been generated in sports betting revenue in New Jersey as of September 12th, with this income garnered after punters had wagered an estimated $3.77 billion during the same period.
This produced tax revenue and state income of $28,947,093, some of which the local authority can then reinvest into the local economy to drive growth, create jobs and improve public services.
How Else Will States Benefit from New Sportsbook Legislation?
With Pennsylvania, New York and Rhode Island amongst a number of states who have also introduced new sports betting legislation since the Supreme Court ruling, the notion of monetising gambling as a way of generating tax is becoming increasingly commonplace throughout the U.S.
However, the benefits to the local economy extend far beyond tax revenue, particularly with sports leagues and franchises beginning to make major moves into the sports betting realm.
For example, the NHL has already created a rule that allows franchises to partner with sports betting firms, largely through the form of multi-million dollar sponsorship and advertising agreements.
The Dallas Cowboys have been quick to capitalise on this business opportunity as they’ve teamed up with a major operator to form the world’s first NFL casino partnership. The New York Jets are expected to follow suit, creating a scenario where everything from advertising and the creation of new jobs adds significant value to local economies.
With the NBA and the NHL also likely to get in on the action, it’s clear that a growing number of states will soon be benefiting economically from the legalisation of sports betting and the legitimization of the market leading brands.
EU Bookmaker opportunities
As new opportunities arise across the pond, many of the largest EU-based bookmakers have made partnerships with US groups or set upon other routes into market with the ambition of offsetting competition closer to home.
Last year Dublin-based bookmaker PaddyPower Betfair blinked first and revealed the first big deal with a US company following the acquisition of a 60 per cent stake in FanDuel.
GVC, who own Ladbrokes Coral, have also pounced after signing a $200m joint venture with MGM casinos to establish ‘Roar Digital’, which will service sportsbooks in all MGM casinos.
Further well- known brands are set to follow suit, and rumours of new mergers are rife as the market widens and the opportunity to float no deposit bonus offers, as well as a plethora of other incentives, to millions of new people becomes too big to ignore.
