Sports Gambling- 9/30

In the U.S.

How Booming?

  • The sports betting industry got $13.7B in 2024

  • A 22.2% year-over-year increase from 2023

  • Sportsbooks won at 9.3% rate nationally

  • Illinois passed NJ to become the 2nd largest gambling market

  • Q4 was the most Lucrative quarter with $3.66B alone (winter season)

What is sports gambling?

  • Bookmaker

  • Money line - betting on whoever wins said match/game

  • Spread - voting that the other team will win or lose by a specific amount

  • Over/Under -

  • Proposition bet - betting that a player will do something or that a specific thing will happen during the game ( in the state of Ohio cannot make prop bets on specific players)

  • Parlay - putting bets together, if all right, you get a higher payout

  • Daily Fantasy

good for sports books, and sports leagues themselves

History

  • Colonial and early American lotteries

  • Horse racing: the “Sports of Kings”

  • Progressive Era - state laws prohibited sports gambling

  • Nevada first to legalize in 1949

  • Organized crime involvement

Major Concerns

1919 Black Sox

College basketball

  • 1951 NYC

  • Boston College -

  • Tulane - students were taking money to change outcomes of basketball games

Pete Rose - betting on his own team (red sox)

Tim Donaghy - NBA ref, changing outcome because of debt to mob

Ohio Sports betting

Law signed by Gov. DeWine in Dec. 2021

Began Jan. 1, 2023

Operated by the Ohio Lottery and Ohio Casino Control Commission

Approved sportsbooks:

  • FanDuel, DraftKings, BetMGM, Caesars, ESPN Bet

  • Type A, B and C Licenses

Where is Sports Gambling Legal

  • everywhere but, Cali, Utah, Idaho, Texas, Oklahoma, Alaska, Hawaii, Alabama, Georgia, South Carolina, and Minnesota

  • the money of sports gambling is really great for the economy, so it would not be surprising if the bigger states on this list will come around and allow sports gambling

  • revenue should continue to rise

What are Sports Leagues Doing?

  • NCAA doesn’t love sports gambling

  • National Basketball Association (NBA) - Legalize and Regulate Sports Betting

    • Takes 1% from bets

    • Has own gambling sponsors and sports Books

  • NHL

    • Wanted to stay out of Las Vegas

    • Also has gambling sponsorships

  • MLB

    • Did not get into Sports gambling right away

    • Specific teams have Sportsbook Sponsors

  • NFL

    • Did not get into it until relatively recently

    • Has lots of sever rules on sports gambling

    • Has betting partnerships with all major sportsbook companies

  • MLS, NASCAR, PGA Tour, and NCAA all have joined into the sports gambling sponsorships

Betting Handle Performance in U.S.

  • sports books need customers to lose to gain profits

  • rise of gambling addiction (for excitement, relying on other to pay bills, lying to hide gambling, and more)