SÁB 19 DE JANEIRO DE 2019 - 15:49hs.
Analysis of what is coming

The first 12 consequences of the sports betting legalization in US

Despite the evident development of the sector of sports betting segment worldwide for more than a decade, the role of the United States in this process has been anecdotal due to the legal framework that the country had. But since yesterday decision of the Supreme Court, the picture changed drastically and a new legal and multibillion-dollar business is opened. In this note, the detail of the main points of the impact for the market.

1) It will be allowed to bet immediately on states that already had a legislation ready and that were only pending of this judicial resolution. Especially relevant is the case of New Jersey, which expects to offer sports bettings in lounges and adjoining venues in just two weeks.

2) West Virginia, Mississippi and Pennsylvania would be the best positioned states to continue the drip of states that would implement specific regulations for the sector.

3) Other states that explicitly forbid in their constitutions the gaming activity, will need more time because they must adapt the legal text to this new reality. But in any case it is expected that 80% of the states contemplate the possibility of flexibility and allow bets in some of its forms.

4) Progressive expansion to online gaming: the effects of this decision of the Supreme Court will still take a while to move to the online sector because state laws that are in force in New Jersey, Delaware or Oregon, for example, need to make some adjustements.

5) Positive impact in Las Vegas: operators with experience in sports betting in Nevada will expand to other states that will open imminent sports betting rooms. So in this case, the loss of the "monopoly" for Nevada will not bring a loss of revenue but the big operators of Nevada (William Hill US or MGM Resorts), have the best positioning to lead markets like New Jersey or Mississippi.

6) A new debate on whether the sector can be regulated in a federal way: although it is not too likely, there are authorized voices that would try to reopen the possibility that the United States Congress will once again deal with an attempt to regulate the sector at a federal level.

7) The Big Leagues get on the wave: the increase in revenue that would mean a regulation of the sector is the great argument of NBA, NFL, MLB or NHL to support this move without fissures. It is expected that these leagues will keep up to 10% of the gross income generated by the sector, what will trigger their budgets.

8) Impact on poker: the possibility that in just one year up to 20 states may be offering online and face-to-face bets opens the possibility that segments such as online poker may develop in parallel and may aspire to achieve visibility as they obtained more than a decade ago.

9) Some states would be left out: especially in the center and in the American West, conservative states such as Utah would not follow the path opened by New Jersey so it is also expected that any state legislation allows residents in other states to gamble from remotely.

10) A total reinforcement of the gaming industry in the United States: states like California would capitalize with great success the increase in the specific weight of the gaming sector in the United States. The country could perfectly lead the technological innovations related to the activity and receive hundreds of companies that would have new headquarters and venues.

11) Not only sports: in recent years the legislation of some states (especially on the East Coast) have been permissive with some forms of betting, especially those related to horse betting. A sector that continues to be very important in the United States and that with this decision of the Supreme Court could grow exorbitant both in presence in racetracks (physical bets) and online horse betting.

12) A new era for responsible gaming policies: it is expected that the country's major sports competitions will invest the majority of their new revenues in ensuring the integrity of their competitions, especially as far as the university sport is concerned. In the United States there are still resounding scandals related to the purchase of parties that recurred in almost every decade of the 20th century. The impact that similar scandals could have on competitions as prestigious as NBA, NFL, MLB or NHL could jeopardize the huge television and merchandise contracts they have. That is why no one is more interested than the competitions themselves in prioritizing responsible gaming policies.

Source: GMB/ Infoplay