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Legislation changes are a boon to the online gaming industry in the US

by Staff writer
01 Sep 2020 at 18:56hrs | Views
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In May 2018, the United States Supreme Court ruled against the Professional and Amateur Sports Protection Act of 1992. This law made it illegal for sportsbooks to operate in most states, with a few exceptions, including one for Nevada, which remains the wagering capital of the country.

Some other exceptions existed, such as pari-mutuel betting, used in horse and dog racing, and for jai alai, a ball sport similar to squash. The New York Times estimated that more than $150 billion was wagered each year in the US through illegal bookmakers, and many other people had to drive or fly to Las Vegas to bet on major sports like the NFL.

The Supreme Court ruling now allows individual states to set their own rules around sports betting, casino games, and poker.

Case Study: New Jersey
Several US states quickly took up this opportunity, including New Jersey, which had bills ready to pass before the ruling was made. It was one of the first states to legalise online casinos, betting, and poker, with the first sites launching within a few weeks of the announcement.

The state is already synonymous with wagering thanks to its famous Atlantic City casino resorts. Now, it's also setting the standard for other states in the nation by giving consumers plenty of options for online poker rooms, casinos, and sportsbooks with over 30 operating as of August 2020.

In the second half of 2018, $1.2 billion was wagered in the state, generating $94 million in gross gaming revenue (GGR). In 2019, the total money wagered quadrupled to $4.5 billion, generating almost $300 million in GGR.

In January and February 2020, these figures were around 50% bigger again, and this trend seems to continue throughout the year but will have to wait for more data to come in.

The ability to place bets online has been incredibly popular, given access to new technology. Throughout 2019, around 80% of all sports wagers in the state were placed through mobile apps.

Success in the Other States
New Jersey isn't the only state that's benefited from legalising online wagering. Colorado made online betting legal from 1st May 2020, generating $25.5 million in GGR in the first month.

Up to March 2020, Delaware had seen its residents and visitors wager more than $270 million, generating $37.5 million in GGR. Meanwhile, Nevada saw wagers above or near half a billion dollars in almost every month of 2019.

Only Just the Beginning
This is likely just the beginning of what will become an enormous industry across most of the country. Over two-thirds of all Americans describe themselves as sports fans, yet a much smaller proportion places bets on sports.

The United States only accounts for around 10% of global online betting revenues, despite being the world's largest economy. The United Kingdom on the other hand accounts for around 8%, despite having a much smaller economy and population.

Therefore, we're likely to see the US online gaming industry explode as more states change their laws to allow customers to place bets via smartphones and computers.

Source - Byo24News