There’s been a lot of anticipation about the revenues that would be generated once sports betting is legalized in the US. While some states prepared for the expected revenue increase, others were wary about it.
It is a known fact that illegal gambling
brings in a lot of money. That’s the reason that many people believe legalized sports betting would be profitable. However, this equation is not as easy as it seems. This is because there are a lot of indices that affect the profitability of any enterprise.
The infographics below by NJ Games is meant to help you understand the economic ramifications of legalized sports betting. But before we get into it, let’s give you a summary.
Understanding the Dynamics of Legalized Sports Betting
Just like the days of the Californian
gold rush, the days ahead would witness a lot of wild drama. There are a lot of players in the field of sports betting: the bookie, the bettor, the bookmaking giants, and even the government. All would seek for ways to get a cut of the pie. This would, of course, lead to a lot of wheeling and dealing.
How would the sports leagues make the kind of profit they feel is worthwhile? How would they combat the issue of illegal sports betting that has already gained ground? These are some of the questions the leagues and fans are faced with. This is mainly because even highly rated legal bookies seldom
make anything higher than 5% net profit per year.
Furthermore, some states are considering the issue of “integrity fees”. These are fees that would be paid to the leagues for supervising some exceptional betting activities. This fee is the charge for providing statistical data and would make it even harder for the bookies to compete favorably with illegal sports betting operators.
While optimism about the profitability of legalized sports betting is high, there are still some lingering doubts.
Check out this infographic and get deeper insights into the economic ramifications of legalized sports betting.