(Newswire.net — January 22, 2021) — Historically the United States has taken a conservative stance on gambling, more so than its European counterparts. Gambling operations have traditionally been limited to land-based casinos and racetracks, with a large portion confined to Native American tribal reservations. Since New Jersey’s legalisation of online sports betting in 2018, an enclave of major state markets have followed suit, most recently Virginia, Michigan, and Iowa.
Online sports betting can be considered a 21st century Gold Rush, with both gambling operators and state governments attracted by the industry’s lucrative allure. Approximately $4 billion in wagers was placed in New Jersey alone last year and the tax revenue garnered padded the Garden State’s budget handsomely. This has led to major international bookmakers seeking land-based partnerships to legally enter regulated markets, as Bet365 has done with Century Casinos in Colorado. Domestic operators like DraftKings and FanDeul continue to dominate fantasy markets as well as NFL, NBA, and MLB wagers.
The turning tide in American views on sports betting is due in part to a thriving black market, and as treasuries are further depleted in economic downturn there is increasingly less reason for prohibition.
Many market openings can be considered ‘soft’ openings. In Iowa online sports betting has been legal since mid-2019, but participants were required to create accounts in-person at a local operator. With this restriction lifted the market is now fully embracing online betting products.
The same can be said for D.C., in which the only online gaming app was a city-monopoly. William Hill has just been permitted their mobile betting app targeted at the national capital population.
In Virginia and Michigan there are ‘hard’ openings. So far more than two dozen license applications have been filed in Virginia, with an allocated twelve licenses to be awarded. Larger American operators are expected to be first in line. In Michigan, state authorities are still thoroughly investigating player protection software features and geo-restricting technology in anticipation of the betting frenzy to come.
In 2021 the total wagers is expected to increase $470 million from the 2020 total. Thus far twenty states have legalised and regulated online sports betting, making the practice available to almost half of all Americans. California and New York remain two huge centers yet to legalise, but proposals are getting closer to votes in New York’s state senate. Both states are expected to join the Gold Rush by the end of 2022.