Tag: Sports in the US

Impact of Coronavirus on Online Sports Betting in the USA

Since early this year, the COVID-19 pandemic has taken the world by storm. The pandemic has not only affected the typical way of life but also put a standstill to the sports industry with major sporting events including the March Madness stalled.

An Overview on the Online Sports Betting in USA

Online sports betting in USA was legalized in May 2018. New Jersey, Pennsylvania, Colorado, Indiana, Nevada, Iowa, West Virginia, Rhode Island, to name a few are some of the legal online sports betting hotspots in the USA.

Typically, the months of March and April are believed to be the thriving period for online sports betting in the USA with the majority of the live sporting events right from NBA to NFL.

Fans make wise bets on teams and players to win huge bucks. In fact, there is a myriad of sports betting apps and sites where hundreds of sports enthusiasts place bets based on their intuition and insights. Nevertheless, online sports betting in the year 2020 witnessed a huge setback not only in the USA but around the world.

What was the effect of Coronavirus in the online sports betting industry in the USA?

A case study on the impact of coronavirus on sports betting in New Jersey, USA indicated a drop by 58.3% in March 2020 when compared to the same period in 2019.

Moreover, the money wagered in online sports betting during March 2020 was only $187.1 million, which was quite low when compared to $372.4 million in March the previous year.

Similarly, Indiana sportsbook operators witnessed a 60% drop compared to last year with $187 million during March 2020.

Experts predict a loss of close to $43 billion with some of the crucial live sporting events including Major League Baseball, NBL, NHL, etc. were either cancelled or postponed in March.

America: the sports gambling gold rush (Part 3)

Not everybody is welcoming the new arrivals. There have been grumblings from local employees in the back rooms of Las Vegas casinos. “There’s a lot of animosity against European bookmakers that think they can come in and know US sports,” says a sportsbook employee in Vegas, who described the market entrants as “arrogant”. Another says that when Sport betting app in New Jersey it did not label football “soccer” or call the NFL “American football”. Changes have since been made.

This month, Flutter announced a £10bn tie-up with Stars Group that would, if allowed by regulators, create the world’s largest online gaming company. The prospect of owning two of the strongest brands in the US market was a major driver of the deal, says Flutter’s Mr Jackson.

Members of the Chicago White Sox baseball team who were accused of deliberately losing the 1919 World Series, one of the biggest betting scandals in US history

But the golden opportunity is complicated by what Mr Blandford, now chairman of marketing company Gambling.com, calls “a spaghetti nest of legislation” as each state sets its own idiosyncratic rules.

Mississippi, for instance, allows mobile betting but limited only within casino grounds. New York allows sports betting activities but limited in only three selected casinos. Tennessee, which has no casinos, will be online only but with an upfront licensing fee of $750,000. In Rhode Island, wariness of betting is such that gambling executives have to answer reams of questions including whether they own a gun or get along with their mother-in-law.

Then there are the varied tax rates across the states, from 6.75 per cent in Iowa to 36 per cent of gross gambling revenues in Pennsylvania.

“The [legislators] have recognised that this is a great opportunity to gain additional revenue for the state coffers,” says Bill Miller, president of the American Gaming Association, from his office near the White House, adding that the thriving offshore market is “a common enemy for all”.

America – the sports gambling gold rush (Part 2)

His efforts were boosted by the emergence in the 2010s of daily fantasy sports games in which people choose fantasy teams across various sports but win points based on the real-life performance of the players. For many it was a way to take punts on sport in a legal grey area outside of PASPA’s reach.
DraftKings and FanDuel, the two biggest daily fantasy sports sites, came to the attention of regulators in 2016 after advertising by the two companies caused a backlash. Some asked whether fantasy sports was merely sports betting under a different guise but the companies successfully argued that fantasy sports are games of skill not chance and therefore did not constitute gambling. Their combined customer base of more than 13m players, however, showed that there was an appetite for the betting-like activity they offered.

The sportsbook at Monmouth Park is under the management of William Hill, the UK bookmaker which has had a presence in the US since it bought a Las Vegas counterpart for $50m in 2012. Late on a Saturday afternoon at the tail-end of the racing season, few punters are watching the horses. Yet the sportsbook — where they can bet on everything from basketball to golf — is packed.

FanDuel, bought by Flutter in the same month as the Supreme Court decision, and DraftKings have both launched full-scale sports betting websites and apps in New Jersey. According to figures from the New Jersey Gaming Board, the pair accounted for more than 75 percent of the total sports betting market in August. Total revenue from sports betting that month reach $25 million.

But that market lead is threatened by an influx of experienced European operators, equipped with the technology and keen to diversify away from highly regulated markets such as the UK and Australia. William Hill has worked with the casino group El Dorado to get the results of accessing to 15 states as they legalise. GVC, owner of Ladbrokes Coral, and Stars Group, the Canadian owner of SkyBet, have also done deals with, respectively, casino giant MGM and media company FoxSports, to enter the US.

America: the sports gambling gold rush (Part 1)

Estimation the size of this potential market vary wildly. Gambling Compliance, an research firm in gambling industry, values the market at up to $8bn in revenue during the term of 2024. If the American Gaming Association’s $155bn estimation of the illegal sports betting market is accurate, the valuation could be much bigger.

But as with any gold rush, the glut of fortune-seekers makes competition challenging and the depth of the mine is uncertain. European gambling companies last circled the US gambling market more than 15 years ago but had their fingers burnt when several executives being arrested for providing online sports betting into the US from entities bases in the Caribbean.

Mark Blandford, then chief executive of Sportingbet whose chairman Peter Dicks was one of those being captured in 2006, remembers being “totally shocked”. Sportingbet paid US prosecutors $35m to settle the case.

But for newcomers, it seems too good to be true. “It’s a once in a lifetime changing opportunity,” says Jason Robins, chief executive of fantasy sports company DraftKings, which owns the second largest share of sports gambling revenues in New Jersey. 
Since 1990s, Americans who wish to bet on sports in the US have had three options: go to the Las Vegas sportsbooks in Nevada, look for a local bookie in a bar, or bet via offshore websites.

The Supreme Court has fundamentally changed all that. Many in the industry say its 2018 ruling was the wonder work of one man: Dennis Drazin, a New Jersey lawyer who is also head of Monmouth Park racetrack in New Jersey. Looking to increase revenues in the state’s fast-failing horseracing industry, he found out that if Monmouth Park could host a sportsbook, punters would come. Mr Drazin fought a series of legal battles aiming to legalize sports betting in New Jersey on the basis that it should be a decision of the states, rather than the federal government.

The sports gambling gold rush in America (part 1)

Banned for decades, US betting is coming back. Strolling down the boardwalk in Atlantic City, New Jersey, you will find scant tourists look in vain for its Prohibition-era glory. After dark days following the 2008 recession, the town — its resorts and railroad — has new hope courtesy of the legalisation of sports betting.
There was few boardwalk’s oldest surviving casinos; one of which was the Hard Rock resort’s sportsbook — the US answer to a bookmaker’s shop but with big live sports screens and alcohol on sale — which opened to the public in June last year.

Atlantic City is the frontier city for a new American gold rush. The gambling hub of New Jersey was the first state to legalize sports betting after the US Supreme Court overturned a federal bill banning the practice in May 2018. Every host of European and American operators have since included sportsbooks in its casinos.

US sports such as baseball and football provide a wealth of statistics on which to bet
The mistrust of sport betting is buried deep in the DNA of many US states — a historical attitude that came along with fears of mob violence and corruption in sport. Increasingly stringent legislation was applied during the 20th century as match fixing and other scandals prompted public outcries. The 1992 Professional and Amateur Sports Protection Act outlawed sports betting in all but a handful of scenarios emerged.

The Supreme Court’s decision allowed the emerging of a fresh market, unhampered by the public and media clamour against problem gambling in mature markets in the Europe. Chief executive of major betting company described the opening up of the US as the most exciting development since the advent of online betting. A combination of increasing population size and the passion for sport could make it one of the most lucrative sports betting markets in the world.

The Most Popular Sport to Bet on in the US (part 2)

It’s also important to distinct the major difference in the amount of games competed in baseball and football. A normal baseball season lasts 180 days with 2,430 matches organized. The NFL season lasts much less and only comprised of 356 games in total. According to a recent survey of NFL fans, only 23% of sports fans claimed to have followed the Super Bowl in its entirety, while only 16% of fans watched the entire World Series.

There is no doubt baseball has an enormous fan base, and is likely the most popular sport in the US just after  football, but basketball is now increasing popular than ever before.

The NBA explosion in the USA

Meet anyone on the street in the US for a name of professional athlete, and there’s a big chance you’ll hear name of an NBA player. Basketball has never been more popular in the US, in fact, many times, NBA finals broke ABC’s rating record for thr most watched sporting event in history.

NBA players 

Star players such as Lebron James and Stephen Curry have become household names. Their rivalry got the sporting world up in fierceful debating over who is better. So how many people are putting money on basketball betting?

Surprisingly, college basketball has generated a massive amount of gambling revenue. During March Madness approximately $2.5 billion is illegally betting by gamblers in the US. It’s unclear how much is spent gambling on the NBA, but likely somewhere in between $10-30 billion range.

It’s common knowledge that football is the king sport in the world. Yes, soccer not American football. What we all in the US call soccer has the biggest fan base in the world, approximately 4 billion, to be exact. Soccer is hugely famous throughout most parts of the world, and has generated the most gambling revenue out of any sport.

The director of Sport betting committee estimated that the total betting industry generates approximately $800 billion per year, 60% of which comes from soccer. The massive increase of internet usage over the past decade has contributed to raise the number of sport gamblers around the world.

What many people don’t know, is that cricket is the second most famous sport in the world. There are an estimated 2 billion cricket fans, many of them originated from India. Field/ ice hockey, tennis, and volleyball are also more famous than any “American” sports, and globally, baseball has far more fan base than American football.

So yes, American football is the most famous sport to bet on in the US, but globally, it cannot compare to soccer. Online gambling is sure to continue increasing, so make sure to stay updated at all time.