The Push For Online Gambling
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US states are showing considerable interest in online gambling thanks to a 2018 Supreme Court decision to repeal PAPSA. PAPSA was a federal prohibition on gambling, so it wasn’t allowed outside of tribal casinos and Las Vegas. The Supreme Court’s repeal of PAPSA opened up the option for states to make their laws around gambling and sports betting.
The results took shape right away: most states have legalized online casinos and sportsbook apps, with millions in revenue being created monthly in a single state. This is true even for smaller states that aren’t known for their vibrant casino scene. Michigan, for instance, debuted its online sports betting in the summer of 2021 and rivaled New Jersey (home of Atlantic City) revenue, counts.
Small States, Big Growth
The Rams might have taken home the Super Bowl trophy, but states with sports betting took home the cash. Bettors in Illinois, for instance, wagered around $61 million on the big game. About $1.4 million of that will go to state taxes. The sports betting companies, or the “house,” took in $9.5 million for profit, which is where the state’s $1.4 million tax revenue comes from. Compare this to 2021, where the betting platforms got $7.7 million and the state $1.1 million.
The example of IL shows how states that adopted sports betting have been on a constant rise. 2021 was a great year, but 2022 will see more states legalize sports betting. New York started its online sports betting in January 2022 and already took over a billion in revenue in a month. Maryland will open up its apps in April and is anticipating great numbers. There’s already talk about which betting companies will be given the right to shop in Maryland from the start. Maryland Draftkings is likely to be a premium name in sports betting.
The increase in betting revenue is a sign that sports betting is here to stay. And once more states start their online gambling operations like Maryland, the number of users is sure to increase.
2021 Was Only A Preview
As the numbers show, 2021 was only a promising start to the kind of numbers 2022 will bring in. 2021 saw many states legalize online gambling but not allow the activation of sportsbook apps. 2022 began with a lot of these apps coming online just in time for the Super Bowl. And already, with New York, Illinois, and Maryland, we see record-setting revenue.
Online gambling is on track to become a very profitable industry no matter where it takes place. It shows that people want to bet on sports no matter where they live. The universal appeal of sports betting plus the convenience of app-based betting creates a recipe for success. It’ll be exciting to see what kind of numbers Super Bowl 2023 will bring in. Until then, sports fans will have plenty of chances to bet on March Madness and beyond.
