The sports betting revival in the United States has much to do with the legalization of sports betting throughout the USA.
The legality of online sports betting in the U.S.A. has been quite a battle. With every state functioning independently, some have legalized the activities fully, others partially, and others have barred the activities. However, this is about to change big time. Things are changing fast following the U.S. Supreme Court’s landmark decision (in 2018) to lift the federal ban on sports betting activities. When it comes to sports and gambling, every state will make decisions on its own.
In May 2018, the U.S. Supreme court paved the way for states to legalize betting. Over 11 stated legalized sports betting after the court lifted the 25-year-old federal ban. Some of the states that have legalized online sports betting in the recent past include;
- Arizona,
- Colorado,
- Connecticut,
- Florida,
- Illinois,
- Indiana,
- Iowa,
- Louisiana,
- Maryland,
- Michigan,
- Nevada,
- Mississippi,
- New Hampshire,
- New Jersey,
- New York,
- Oregon,
- Pennsylvania,
- Rhode Island,
- Tennessee,
- Virginia,
- Washington D.C.,
- West Virginia, and
- Wyoming.
Other states still have pending legislation, and others have active legislation.
The Exciting Story of New Jersey’s Sports Betting Revival
New Jersey is among the most recent states to integrate e-Sports into its betting market. It is a regulated market with legalized online gambling and sports betting activities. The incorporation happened just after the Garden State’s legislature unanimously agreed to pass the A637 bill. It facilitated the legalization of e-Sports betting within New Jersey’s state borders. Most people previously knew the A637 bill as the e-Sports Betting Bill. The latter is a popular term in New Jersey-based sportsbooks.
While New Jersey first revealed it in January 2020, the e-Sports Betting Bill has brought lots of excitement and interest in the U.S. e-Sports sector. The current revision ensued an expansion of the existing legislation on legalized sports betting. Today, bettors can now wager on e-Sports online and offline as long as they are in New Jersey. First passed in summer 2020, the bill granted sportsbook operators the authority to accept and facilitate wagers on all types of e-Sports events, activities, and markets. It was a significant step in the online sports betting industry in the U.S., and we expect more states to embrace the bill.
Before passing the A637 bill, New Jersey allowed all sportsbooks to take bets on e-Sports, provided they had the state’s regulatory approval. The DGE (Division of Gaming Enforcement) made the first approval in the fall of 2019, following the e-Sports licensing of Borgata Casino.
New Jersey e-Sports Betting Market
From the bill’s legislation, sportsbooks had the power to accept wagers of not more than $100 on e-Sports. The bettors, in return, would get not more than $500 in their winnings resulting from e-Sports. While it seems like a hurdle of strictness, sportsbooks operators hope that DGE extends or removes it. The action depends on New Jersey’s Division of Gaming Enforcement, commonly abbreviated as DGE.
The Repeal of PASPA (The Federal Ban on Online Sports Betting Act)
After the PASPA (Professional and Amateur Sports Protection Act) repeal, New Jersey is among the frontline states in the U.S. that have legalized e-Sports betting markets. Other states that have followed suit include Nevada, Tennessee, and West Virginia. States such as Maine are in constant talks for the legislation so that they can permit e-Sports betting. Generally, the U.S. online sports betting industry is quickly reviving; faster than we thought.
As you can see, the legalization of online sports betting in the U.S. is a broad spectrum. There is also another category of states that have sought to legalize sports betting but do not have a ruling on the legalization of e-Sports betting. It includes Pennsylvania, Michigan, New York, Arkansas, Delaware, Iowa, and Montana. Other states have only moved to legalize land-based sports betting hubs, with direction to retail sportsbooks. Arkansas falls in this category.
The State of Sports Betting Market in the U.S.A Today Courtesy of PASPA’s Downfall
We can all agree that the pandemic defined sports in 2020. Be that as it may, the same period also saw sports betting become a firmly established powerhouse in the U.S.A. In October 2020, U.S residents bet approximately $3billion on sports. It was the highest amount seen in a single month. According to research and comparison, it was a nationwide growth of over 50% annual revenue. In December 2020, bettors in New Jersey set a sports betting record for the fifth month in a row. It was $996.3 million in bets and stood out nationwide.
The revival and blossoming of sports betting in the U.S. attributes to the downfall of the Professional and Amateur Sports Protection Act (PASPA). First enacted in 1992, the law had completely outlawed sports betting across the U.S. Its abolishment by the U.S Supreme Court in 2018 saved many states, including Nevada and New Jersey. After these two states legalized sports betting, we saw many other states do the same. Within a couple of months, we had over ten states. States such as New Jersey are quickly moving onto legalizing e-Sports, and soon others will follow suit.
The Impact of the Covid-19 Pandemic on Online Sports Betting and Gambling in the U.S.A
Everyone, in whichever capacity, has felt an impact of the Covid-19 pandemic. Some industries benefited more than others, while others suffered more than their counterparts. For example, land-based sports betting got hugely distorted as more people resulted in online betting and gambling. We saw tournaments and matches get postponed, and some even canceled. Generally, 2020 was a challenging score for the sports betting and gambling industry.
There were so many restrictions, and some of the largest states in the U.S.A were put under quarantine. Lower league teams faced financial difficulties, which contributed to a reduced number of sports and betting markets. The situation was even worse for land-based sports betting houses that relied on physical bettors.
While the pandemic had positive and negative impacts, this section will concentrate on helping you understand how it promoted online sports betting.
Diversification of Online Sports Betting
Like other sectors, the sports betting industry revolutionized and made a few changes to accommodate the pandemic. A year later, after the first cases, many sportsbooks have begun to offer more sports betting opportunities for bettors. They have incorporated e-Sports, live sports betting, and even online casino games. As such, bettors can also diversify their reach and income to scratch cards, baccarat, slot variations, poker, and other popular table games. Some of these games are easy to learn and practice.
The Rise of E-Sports and Fantasy Video Sports Betting
Lockdowns and restrictions across the globe affected many sporting events. As we pointed out earlier, the authorities postponed some sporting activities and canceled others.
Big tournaments such as Copa America had to be canceled, which took a toll on the sports betting industry. Online sports betting sites incorporated e-Sports and fantasy video sports betting on their sites. These gaming options are relatively shorter than the regular matches and more entertaining.
The Rapid Decline and Revival of Sports Betting Revenue in the U.S.A
Sports wagering revenue in markets like New Jersey in 2020 was impulsive. It took a nosedive between March and May 2020. During this time, the pandemic was at its peak, and it was almost impossible to mingle. It started by restricting fans into sporting activities, and within a week, it began barring players from participating.
The total gaming revenue from sports betting dropped by over 60%, and this derailed most activities. Surprisingly, the losses did not decline anymore. We all saw a bounce-back that no one has seen in the industry for decades. The V-shape to recovery and revival began for sports betting. As the year came to a close, sports betting was sustainable and in a better position.
The Revival of Sports Betting and Gambling in the U.S.A
2021 is a dynamic time for the global economy. The pandemic threw different businesses and industries into unfamiliar roads with uncertain futures. The iGaming industry is among the few sectors that can be thankful in 2021; a revival has come. Besides opening up new betting opportunities for bettors, there will also be opportunities for businesses and entertainment. More states in the U.S. are proposing new gambling laws to assure profitability and success with the expected revolution.
The Rise, Popularity, and Success of Sports Betting After the Pandemic
While the pandemic crippled many businesses, the betting industry is among the few that enjoyed a degree of success. With more people holed in their homes, they turned to online betting sites for fun, entertainment, pastime, and some for income. Most of these sites continued to experience a high number of customers with the lockdowns and travel restrictions.
Besides being trendy and diversified, the pandemic enhanced sports betting to some extent. It opened doors and showed us what we were missing. 2020 was a war of attrition, but we have seen optimism in 2021. Gaming products, sports betting activities, and legalization momentum are even stronger and better. Just think of how much more sports betting and the online gaming industry can thrive during the best times.