The legalization of sports betting has a significant role to play in sports economics as the betting industry over the past few years continues to record enormous financial flow. This has led to the lift of the ban placed on sports betting for a while. The sports betting industry has blossomed into a multi-billion dollar industry with estimates of over $150 billion annually.
Sports betting contributes positively to the national economic outlook. Bet enthusiasts argue that legalizing sports betting will increase the financial revenue in the industry, thus procuring huge tax revenues for economic development for the country at large. The discussion of job creation can never be overemphasized as this billion-dollar industry will create jobs for an estimated 130,000 to 160,000 persons. Research has it that the industry if legalized, will bring an annual return worth $6 billion by 2023.
The average sports fan who is not a bettor watches about 20 games a year while bet enthusiasts watch an estimated 55 games a year. This shows how betting increases the audience and commands attention. This is why allowing the legalization of betting will automatically make more people watch sports.
New services and applications from VC-backed tech startups and legacy media companies will increase if betting is legalized as betting can be done through subscriptions or adverts, which can bring more money and rewards from affiliate links that do advertising which sends fans to sportsbooks. More so, it is likely to create a world of content varying from statistical analysis or news.
HOW WILL FANDUEL AND DRAFTKINGS RESPOND THIS LEGALIZATION?
It will be amazing to be part of how the effect of legal sports wagering will be on fantasy sports and market leaders like FanDuel and DraftKings. Recall that in 2017, the two comprised roughly 90% of the $320 million revenue, which was generated from fantasy sports. In 2009, Fanduel was founded, and DraftKings was established three years later in 2012; they became darlings of the capital world, making $400 million and $700 million respectively, and by 2015, both companies launched very massive and aggressive marketing campaigns. DraftKings spent $156 million only on TV commercials, and FanDuel spent even more. However, the ads gained the attention of a great number of fans; and this proves that legalized betting will have FanDuel and DraftKings generate more revenues for the states.
Everyone who desires to place a bet can comfortably do so online or via local office pools or offshore books. Many feared that the legalization of betting would affect sports leagues negatively hence should be avoided, but that assertion is not accurate.
GENERAL EFFECT OF SPORTS BETTING ON AMERICA
One major reason the legalization of sports betting is rejected is that many feared that betting would corrupt the league. This is really not true as an illegal system makes fixing of games easy, and irresponsible activities cannot be detected easily. But with a legalized system in betting, games will become harder to fix, and irregular activities will be easily detected, thereby enhancing transparency.
Also, as games are easily fixed in an un-monitored environment, it leads to money flows under the radar, and this alone proves that the common belief that legalized sports betting will cause corruption to sports is wrong.
The human factor has great impacts on betting and sport at large, and so many times, there could be situations that will arise, which will affect many people like team owners and even down to the last player. Although skills could help improve winning odds, not everyone has the required deep sense of understanding and statistical analysis needed to win.
Hunch is the major edge people use to bet and not necessarily knowledge. Therefore, sports betting is not completely based on skills as believed but chance.
Legalizing sports betting will change America's nature of sport for the better. The sports industry will be turn out to be more commercialized, and this will yield more money than before because everything about betting boils down to more money.