Several US states endorse sports wagering.
The current election campaign for the White House between Donald Trump and Joe Biden is making waves, but in some US states, the vote was about more than just the future president; it was also about legalizing sports betting. Residents in Louisiana, Maryland, and South Dakota supported sports betting, while Virginia, Nebraska, and Colorado saw gambling-related reforms.
In these states, voters were asked to approve the future regulation of sports betting. In all three states, the majority voted in favor of legal sports betting.
Democracy in Action
Since the US Supreme Court (USSC) lifted the ban on sports betting in May 2018, 18 US states, plus Washington D.C., have legalized sports betting. Now, 3 more states—Louisiana, Maryland, and South Dakota—have followed suit. This all happened alongside the US elections, during which state governments put betting regulations to a vote.
In Louisiana, home to 4.6 million people, 55 out of 64 districts were in favor of legal sports betting. It was made possible due to Senate Bill 130, authored by Senator Cameron Henry. The betting reform was also backed by the Louisiana Wins initiative, a group of sports betting advocates. The need for this was clear: a Department of Commerce study showed that Louisiana had a tax gap of around $330 million.
Ryan Berni, campaign spokesman, believes this decision was an act of democracy. With no legal sports betting, the state had been missing out on tax revenue. Now, residents can generate additional revenue to cover the state's various needs. There's unity among industry, business groups, and community leaders, who have come together to establish new priorities for the common good.
One primary motivation behind legalizing sports betting in the US has always been to curb the illegal sector. According to the American Gaming Association (AGA), which recently shared a new US betting code, the illegal betting industry generated around $150 billion in yearly turnover before liberalization. This would mean significant tax losses for the states. With that in mind, AGA President Bill Miller welcomed these newest ballot initiatives.
The Next Steps
Another state set to join the wave of legalizing sports betting is Maryland, with a population of 6 million. Of the voters, 66.2% supported legalizing sports betting. High-ranking officials, like Governor Larry Hogan, supported and endorsed the process.
Just like in Louisiana, the implementation of this decision now falls to the legislature, which must turn the bill into a tangible legal framework. Senator Craig Zucker authored the bill, and it initially included a licensing fee of $2.5 million, an annual renewal fee of $250,000, and a 20% gross receipts tax. Online gambling operators would also receive master licenses, with a minimum fee of $5,000.
However, these provisions disappeared from the final draft.
Casino Expansion
In South Dakota, with a population of 885,000, legal sports betting was also endorsed by 58.5% of voters. This decision is limited to Deadwood, a city known for agriculture and gold mining in the west of the state that's still tempted by these industries. A legislative extension includes blackjack, craps, poker, roulette, and slot machines.
It's not just these three states making changes—they join Virginia, Nebraska, and Colorado, where sports betting is already legal. In Virginia, residents voted to legalize new casinos in four cities. In Nebraska, casino gambling at horse racetracks was given the green light, while Colorado chose to cancel wagering limits. Miller, AGA's CEO, expressed his appreciation that 44 US states now have legal gambling facilities. The aim is to encourage more cooperation between politics and the industry.
Stock Market Boom
As a result of the legalization of these markets, betting company shares saw a spike in value. Penn National Gaming (PNG) shares rose by 6.5%, DraftKings increased by 5.3%, and Flutter Entertainment, owner of FanDuel, increased by 4.4%. The overall market value reached an impressive $537 million.
This increase was fueled by rising sports betting popularity. Record betting figures were announced at the start of October, with $2.1 billion in stakes in August, marking the most significant monthly betting volume in US history. The return from this generated revenue of $119.4 million, making it the second-highest grossing month of all time.
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Source: www.onlinecasinosdeutschland.com
