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USA: Gambling Market Review after PASPA Overturning

16 October 2019, 12:04
Votes: 2

PASPA overturning has caused various debates and controversies in American and worldwide society as well. Professional and Amateur Sports Protection Act (PASPA) was legalized in 1992. This act was prohibiting various gambling activities for 27 years in a row. So what are the consequences, pros or, probably, cons of betting games legalization in various states?   

USA: Gambling Market Review after PASPA Overturning

The decision of betting games legalization was taken on May 14, 2018, by the Supreme Court of the United States. The bans are already suspended in 11 states since the law entered into the force. These are New York, Nevada New Jersey and others. Currently, about 7 states are waiting for a clear date to launch the sports betting legalization. About 24 US states are reviewing the probability of legalization and another 8 have no independence in the sector legitimization. Let’s consider those 11 states that have made a step towards a completely new gambling perception.

Betting legalization in the USA

Since PASPA came into force in the USA the gambling market has significantly decreased. Gamble’s prohibition has led to states' income decrease, illegal betting promotion because Americans haven’t stopped playing. Huge sums of money have been avoiding the US economy and have settled in other countries. According to various trustable sources, more than $150 billion were bypassing the American treasury. This meant that a pretty amazing amount of money was completely lost. 

However, in 2017 new opportunities waved on the horizon. The White House and Senate started actively discussing the possibility of canceling the PASPA law. Donald Trump has also announced his willingness to support this intention.  

Here’s the pretty entertaining fact: the New Jersey authorities were so confident in betting legalization that they started receiving operators' inquiries on legalization long before the official decision. Let’s have a brief overview of which states have legalized betting.

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Betting legalization in the USA

Illinois 

Illinois was one of the states that decided to legitimate sportsbooks along with online betting. However, the governor of Illinois took an 18 months ‘’pause” in order to give more time for casinos to prepare for the betting season. However, the sportsbook launching date is still awaited. Sports gambling and physical sportsbooks were legalized in June of 2018.

Indiana 

The date of the sports betting launching in Indiana is the first of September. The new law will give a chance for online mobile betting. However, it prohibits the possibility of betting on young amateur athletes that haven’t turned 18 and esports. About 13 casinos and betting places are ready for the gamblers to come.

Mississippi

This state was one of the first that started the process of gambling legalization. The process was launched in 2018. Since the first of August of 2018, 23 gambling spots are ready to receive bets. However, mobile gambling is prohibited outside the licensed casino’s territory.

Montana

Montana State was literally the first one to legalize betting in 2019. The gambling process will be released through the specially prepared kiosks and specifically designed mobile apps. Officially, there is no information about the date of the gambling season beginning. However, the approximate date will be close to the NFL season beginning in September.

New Hampshire

June of 2019 was the beginning of the betting era in New Hamshire. The age of those who can start betting starts with 18 as opposed to the usual 21 in other states and countries. However, the law is still waiting to be signed by the Governor of the state.

New Jersey 

New Jersey

New Jersey is considered to be one of the most significant gambling markets in the US territory. Sports betting started in June of 2012 when the law was officially signed and came into force. Gambling will be available with a specially created mobile apps, in casinos and tracks. Officially, the age of those who plan to make bets starts with 21. Despite this fact, people form 18 are allowed to make bets on horse races. 

New Mexico

Sports betting hasn’t started in New Mexico yet. However, two of the casinos in this state officially have sportsbooks.

Read more: Esports and Sports Betting Are to Implement All Technological Innovations in the Next 20 years – ICE North America Speaker

New York

New York state has improved the gambling regulations since new law entered into force. New York Gaming Commission has designed special guidelines for sports betting processes. They are opening, licensing, and operating activities. However, as for mobile betting, there is still no news until the papers are signed.  

North Carolina

26 of July was the official beginning date of the gambling era in North Carolina. On the other hand, mobile betting is not allowed on the state territory. As for the sportsbook, the date of the legitimate beginning will be revealed later.

Rhode Island

Betting legalization beginning took place in 2018. However, mobile betting wasn’t included in the list of activities allowed. It was formally allowed when the state budget was approved in 2018. Two casinos were opened in the state. In March of 2019 lawmakers were trying to include online and mobile betting as well into the list of authorized activities.

Tennessee 

The Governor of the Tennessee state hasn’t signed the official bill according to the fact that he didn’t have enough belief in the gambling. Current law gives force to online and mobile betting as well. On the other hand, there won’t be any physical locations in the state. The law beginning date is still unknown. 

Rhode Island

Nevada

Nevada state is known as the legislator of gambling in the US. The sports betting has 1949 as a year of its beginning until the PASPA forbade the development of the state in the gambling area. However, Westgate has become a home for the elite and world-known sportsbook that is used as a standard for other sportsbooks in the US and all over the world.

Iowa 

May of 2019 has become the beginning of the legitimate betting in Iowa. The law gives permission to gamble for those who turned 21. Approximately 18 casinos have received an official license. The law doesn’t forbid mobile gambling either. However, it is required to visit the casino and prove the identity along with age.

Delaware

Delaware was one of the first to officially legalize sports betting after the Supreme Court decision. Sportsbooks were built inside the casinos in order to receive gamblers. Three casinos have started their official work from June of 2018.

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Experts’ opinion about PASPA overturning

Many experts throughout the world share the same opinion that PASPA canceling opens the wide door for potential growth for betting activities. PASPA overturning will definitely start the development of online gambling throughout the country. For sure, it is an indisputable chance for all of the companies, and players on the gambling market along with customers, actually. Here are some of the key opinions of the US gambling industries on PASPA canceling further perspectives. Jeff Freeman, The President of the American Gambling Association considers that the law of 1992 definitely lost its actuality nowadays. Sometimes it led to nonsense when different actions of customers and fans were recognized as illegal. The ban of the sector has caused significant market losses, cash outflow and anonymity of the betting industry. 

Betting market legalization will definitely lead to new workplace creation (about 150 000 workplaces) and cash influx into the federal treasury (about 5 billion dollars). It is no secret that betting operators are ready to invest the literally cosmic amount of money into the gambling industry of the US. Moreover, it will cause the growth of the economy and the development of different states.

Experts’ opinion about PASPA overturning

Barry Cottle, the CEO of one of the biggest players in the gambling industry Scientific Games sincerely counts that PASPA will open the door for new opportunities and significant growth of the gambling market. Pat McHugh, the representative of Global Lottery Systems joins him in this opinion and says that PASPA canceling is a historical step towards a new era of the American gambling industry. Companies will propose to their customers gaming and betting services that meet the requirements of the law and stay overwhelmingly entertaining. The betting process will be protected by new technologies.

PASPA overturning: what’s next?

New Jersey as the trendsetter of the gambling industry has already started to give licenses to operators and sportsbooks. During the first month of legalization, more than 3,5 million were transferred into the state’s bank account. Huge global gambling operators are willing to invest in the economy of the state.

New Jersey has set an example for different states. Analysts predict global gambling market growth on more than 14%. Anyway, PASPA overturning has shown a completely different approach for the gambling industry and betting business development. Without any doubt, it is a new page in a history of betting and time will show what it brings.

As mentioned earlier, the sports betting industry of the USA started the process of rapid expansion across the states after the PAPSA overturning.  

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