More and more states in the U.S. are seeing the potential in legalizing online sports betting. For a long time, it was against the law, but now, states have won the battle against this law and online sports betting is rolling out across the country.
Online sports betting provides states with millions, if not billions, in revenue each year. Considering there were very strict rules limiting gambling across the country, more states are recognizing the benefit of legalizing online sports betting, not just for their citizens, but for the state.
New Jersey and Nevada have been at the head of the race when it comes to casinos and betting. They have been the ones that have had the most relaxed rules, and people traveled from every corner of the country to bet in these states.
But other states have now quickly moved to legalize forms of betting, mainly online sports betting. States, where sports betting was already illegal, include Arkansas, Indiana, Nevada, New York, New Mexico, Rhode Island and West Virginia. There are also a number of apps and websites providing online sports betting
Considering how massive sports are in the US, and the number of sports that someone would be able to bet on, it was only a matter of time until states realized the potential of completely legalizing it.
With most betting and casinos, the state would obviously make money off of the bets, and clearly generating this kind of revenue would be incredibly beneficial. This is the main driving force behind fully legalizing online sports betting and online betting in general.
2020 is going to be a big year for online sports betting as more states aim to legalize it. Michigan, Colorado, Illinois, Montana, North Carolina, and Tennessee are all aiming to legalize/regulate online sports betting this year.
Michigan planned to legalize sports betting by March while imposing an 8.4% tax on all new bookmakers. This tax will be sent to the School Aid Fund and other organizations to help communities around the state.
Tennessee has taken a different approach. The Tennessee Sports Gaming Act only allows online sports betting entities. Brick and mortar casinos cannot operate sports betting entities. Bookies would need to pay a $750,000 licensing fee and abide by a 20% tax rate. Operators must also use official sports data to regulate their odds and betting purposes.
The other states that have legalized online sports betting kind of follow the same path as Michigan did. Some have enforced a licensing fee, as well as a tax that goes towards funding initiatives that help communities across the state.
There have been some states that had legislation rejected last year, but are planning on reintroducing that legislation this year. These states include Alabama, California, Hawaii, Kansas, Louisiana, North and South Dakota, Texas and Washington.
The majority of these states didn’t pass the legislation due to disagreements over fees, tax rates,etc., but lawmakers are due to reintroduce them this year as they clearly see the benefits that other states are currently enjoying.
What could be a major hurdle is the current COVID-19 outbreak. Lawmakers won’t prioritize legislation over the current outbreak. As many of these states were planning to put their new legislation forward in the first half of this year, that will need to be delayed for a few months, or even until next year when the pandemic has cooled down and the virus is under control.
In the end, it is only a matter of time before every state has some form of legislation or law that allows for online sports betting, online poker and online casinos. When regulated correctly, it helps the state in more ways than one.
This year should still see even more states work towards legalizing it, and if not due to the current pandemic, it will almost be next year when we see the changes. There are still a few states that have no bills planned currently, but once again, once they see the benefits, it is only a matter of time before they jump onto the online sports betting bandwagon.
