Inside Gaming: The Rapid Rise & Continued Growth of US Sports Betting
Table Of Contents
Of all the intriguing industry-related threads we were following throughout 2019, the remarkable growth of sports betting in the United States was easily the most prominent. Indeed, ever since May 2018 when the US Supreme Court cleared the way for expanded sports betting by ruling the federal prohibition against it unconstitutional, legislation has been passing on a regular basis in many states with others appearing ready to join the game soon as well.
As 2019 came to a close and the new year begins, no less than 20 states as well as the District of Columbia have now passed sports betting legislation of some variety, with 13 of those states plus DC having done so during the last year. To catch us all up, here's a quick run through the whirlwind of the last year-and-a-half during which sports betting swiftly spread throughout the country.
Sports Betting in 2018: The First 8 States
NEVADA used to be the only state in which all forms of sports betting were legal, with the Professional and Amateur Sports Protection Act of 1992 having ensured its special status by allowing only three other states to offer very limited forms of sports betting.
Once PASPA was overruled, DELAWARE took just three weeks to start offering sports betting in early June 2018. That even beat NEW JERSEY, the state that had filed the lawsuit challenging PASPA. A few days later a sports betting bill was passed by New Jersey lawmakers and quickly signed into law, with the Borgata soon earning the honor of taking the first sports bets in the state.
MISSISSIPPI was next, like other quick-moving states having already had legislation in place to be ready to go once the anticipated Supreme Court ruling came down. The first bets in the state were placed at a couple of MGM properties, the Gold Strike Casino in Tunica and the Beau Rivage Resort and Casino in Biloxi, at the start of August 2018.
Earlier in 2018 WEST VIRGINIA had passed sports betting legislation, and at the end of August started accepting their first sports bets. Then in October the first sports bets in NEW MEXICO were placed at the Santa Ana Star Casino in Bernalillo just north of Albuquerque. Lawmakers there actually hadn't passed any new legislation, but sports wagering was allowed according to an already in-place tribal gaming compact.
PENNSYLVANIA also took its first sports bets in November 2018 after having passed a wide-ranging gambling expansion bill a year before. And after passing legislation in the summer shortly after the Supreme Court ruling, RHODE ISLAND became the eighth state in 2018 to accept sports bets, albeit only in a couple of locations.
Sports Betting in 2019: Add 12 More States (Plus DC)
In November 2018 voters in ARKANSAS approved an amendment to permit sports betting, and in July 2019 the first bets were placed at the Oaklawn Racing Casino Resort to kick off July 2019. That was the same month NEW YORK sports bettors also were able to place their first wagers after several years' worth of legislative wrangling in the Empire State.
At the end of July NORTH CAROLINA's Governor Roy Cooper signed into law a bill allowing sports betting, although only on site at the two casinos located in Cherokee in the westernmost part of the state. Lawmakers continue to consider an online sports betting option, however, that could allow residents across the state to take part.
In August IOWA began accepting sports wagers in several locations just a few months after having legalized sports betting. And before the month was out OREGON did the same, having already had a sports betting law in place.
At the start of September operators in INDIANA began taking sports bets just in time for football season, with the mobile option arriving later that month. Then on December 30 Governor Chris Sununu placed the first sports bet in NEW HAMPSHIRE after signing into law a new sports betting bill back in June.
That makes 15 states whose residents can currently bet on their favorite sports. Meanwhile several others have passed bills and are awaiting regulation to get going as well.
Of those states MONTANA is probably the closest to going live after passing legislation back in the spring. TENNESSEE also made sports betting legal in May 2019, and ILLINOIS followed in June.
The DISTRICT OF COLUMBIA has a law on the books, too. The path to regulation was slowed there by a lawsuit concerning the mobile betting component, although a ruling just this week appears to have allowed DC finally to move forward.
A dramatic, close vote in November saw COLORADO citizens approve a proposition to allow sports betting in the state. And just before the end of the year Governor Gretchen Whitmer of MICHIGAN signed into law a package of bills passed by lawmakers earlier in the month covering online gambling (and online poker!) as well as sports betting.
Sports Betting in 2020: What's to Come?
Unsurprisingly, from state to state current sports betting laws vary greatly, with some having severe restrictions and others being as open as Nevada with their offerings. New York, Mississippi, Arkansas, Delaware, and Montana (for instance) don't allow mobile sports betting yet, although in most cases lawmakers have considered adding it. (Meanwhile the law passed in Tennessee allows for mobile sports betting only.)
Being able to make bets online is a key element affecting whether or not sports betting produces significant taxes and revenue. In New Jersey, for example, where sports betting revenue is now rivaling and even exceeding what Nevada realizes each month, online sports wagering is routinely responsible for 75 to 85 percent of the total sports betting revenue.
Betting on where things proceed from here is about as uncertain as knowing whether Lousiana State University will cover the 5.5-point spread as the favorite against Clemson University in the upcoming College National Championship. It seems likely, though, that 2020 will see even more states legalize sports betting, as lawmakers in no less than 25 states are presently contemplating legislation.
The map below paints a picture of just how much and how fast sports betting has spread. Only the few states appearing in red aren't looking into sports betting, while those in yellow are all considering it and those in green are already there.
Photo: "Sports Book @MGM" (adapted), Daniel Ramirez, CC BY 2.0.
