More than $400 billion is spent on betting and gambling annually, making it one of the biggest industries in the world. Around 30-40% of that amount comes from sports betting alone.
The recent legalization of sports betting in the US is expected to increase that number and bring numerous other benefits.
The legalization took place in May earlier this year when the US Supreme Court overturned PASPA (Professional and Amateur Sports Protection Act of 1992) which was prohibiting sports betting across the country.
With a few exceptions, states were prohibited to legalize these activities within their territories. However, the situation is changed now.
Each state is granted right to decide for itself whether it will allow sports betting under its jurisdiction. At this moment, seven states have completed this process and you can now legally place sports bets there. One state (Utah) decided not to legalize it, while others are still either quiet or in the process of legalization.
The law has been criticized for a long time, with the state of New Jersey being one of the leaders in support of the sports betting legalization. In 2011, the voters from this country voted a state constitutional amendment that would permit sports gambling on its territory. This has allowed sports wagering in casinos and racetracks.
To realize how big of an impact the legalization is going to have on the US economy, you need to know how much Americans like to gamble on sports.
A report by the American Gaming Association reveals that approximately $4.6 billion was spent on Super Bowl LII back in February. Due to the law that forbade betting on sports events, an astonishing 97% of the wagers were illegal. Just imagine how big this number would be if betting were legal before the Super Bowl event.
The National Football League (NFL) is going to bear the fruits from the legalization. According to the American Gaming Association, the NFL will gain $2.3 billion a year by 2020.
Nielsen’s studies report that the NFL’s total annual revenue is expected to increase by around 13% ($1.75 billion) coming from betting operators, advertising, and several other new streams.
The US economy is going to experience a big impact from the legalization of sports betting as it is expected that the total economic output is going to be an amazing $41.2 billion. The sports betting operations are expected to create the direct labor income with $4 billion and the indirect with $7 billion.
Sports betting is also going to have a huge impact on employment. It is projected that more than 85,000 direct and almost 130,000 indirect jobs will be created as a consequence of the legalization.
Only time will tell how many other benefits the Supreme Court’s ruling will bring. Check out the infographic below to see more stats and information about the legalized sports betting.