The New Age of Legalized Sports Betting
On the 14th of May 2018, the US Supreme Court struck out a federal law prohibiting betting on individual sporting events. There has since been a flurry of activities from sports leagues and casinos to cash in on the new billion-dollar industry.
The 26-year-old regulation, known as the Professional and Amateur Sports Protection Act (PASPA), rendered any form of gambling or betting on sports activities illegal. After the passage of the bill, prominent individuals, sporting bodies, and even the state of New Jersey vehemently opposed the regulation.
In March 2009, Senator Raymond Lesniak representing New Jersey state and other individuals filed a suit against PASPA. The lawsuit was followed by a referendum passed by New Jersey voters supporting legal sports betting at casinos and racetracks in November 2011.
Some sports organizations, like the NBA, MLB, and the NFL, filed a suit against New Jersey state in August 2012, in a bid to oppose its plan to implement sports betting on college and professional games.
The next couple of years witnessed a series of subsequent lawsuits and legal action going back and forth between the state of New Jersey and the sports organizations. However, in May 2018, the United States Supreme Court ruled that PASPA is unconstitutional and that states should have the right to decide whether sports betting should be legalized or not within their jurisdictions.
With the regulation repealed, what is its impact on sports and other sectors?
Apart from the excitement the US Supreme Court ruling has brought to sports fans, sports leagues, casinos, and betting services, the decision is expected to have a significant impact on the future of sports entertainment as well as the US economy.
About seven states have legalized sports betting, and about 18 others have passed a bill to that effect. The projected economic output representing the spending of sports betting patrons in the US is expected to hit about $41 billion.
With the legalization of sports betting, the industry is expected to create about 86,819 direct jobs with a labor income of $4 billion, plus 129,852 indirect jobs and a labor income worth around $7 billion. The jobs created would mean a fiscal impact of $8.4 billion and an addition of $22.4 billion to the GDP of the US.
For further insights on how legalized sports betting will have an impact on the US economy, NJ games has compiled an infographic you’ll find below.