The Legalization of Sports Gambling: A Winning Bet?
(Note: related companies
are at base of the story and all the sources listed in the “Balanced”
section)
On Monday, May 14, 2018, the U.S. Supreme Court made a monumental ruling to legalize sports gambling outside the state of Nevada, lifting the 25-year-old federal law. The rationale for this decision was to bring a multibillion-dollar industry into the forefront, allowing states to record tax revenues and encourage tourism. The decision is intended to protect consumers by increasing transparency between all parties involved. As of February 13, 2019, full-scale legalized sports betting is allowed in eight states, with bills pending in two additional states.
The American Gaming Association (AGA) estimates $150 billion is illegally wagered in the United States annually. This Supreme Court ruling presents an economic opportunity for corporations and entrepreneurs to compete for a share of this market. Assuming at least 40 states legalize sports betting, the AGA estimates the industry can generate $8 billion in local tax revenue, create thousands of new jobs, and add between $14-$20 billion to the national GDP.
The
success of the gambling enterprise is founded on the simple principle that
there will be more losers than winners. So, who will be the winners? And, who
will be the losers?