Profits From Regulated Sports Betting

Even though it is in the process of development, the U.S. gambling industry is considered as a promising gold mine. Back in 1992, illegal gambling saw an income of over $40 million. Moreover, AGA (American Gaming Association) evaluates that over 40 million U.S. residents wager on sports every year. More than half of the nation (55% to be precise) looks forward to regulating sports gambling.

Bettors spent $58 billion on the NFL back in 2017 in legalized sports gambling alone. Also, in the same year, they bet $4.6 billion and $10.4 billion on the Superbowl and March Madness respectively. The abandonment of PASPA means that individual American states are legitimate to manage internet sports gambling operations. Legalizing sports betting would be beneficial for multiple players.

The regulation would not mean only authorizing one of the favorite free-time activities of U.S. residents, but it would also be of great economic significance. This pastime is expected to generate $41.2 billion every year. Since one part of business automatically affects others, legalization of sports betting would see the expansion of services such as coffee shops, restaurants, etc. They would indirectly make a profit amounting nearly to $7 billion. Furthermore, the legalization could make $8 billion in terms of taxes. Also, it would bring about hundreds of thousands of job vacancies, which would include an additional $22.4 billion in the country’s GDP (gross domestic product).

To sum up, the main outcomes of regulated sports betting includes:

  • Complete economic gain, which stands for US enterprises’ sales, should amount to $41.2 billion;
  • Regulated sports gambling operations, together with salaries, payrolls, advantages, and rewards, should finance $11 billion of complete labor revenue;
  • The overall number of induced, direct, or indirect jobs would be 216,671;
  • Regulated sports gambling should add $22.4 billion to the national GDP.

Financial impact, including local, state, and federal tax should amount to $8.4 billion in total.


In terms of advertisements, the U.S. belongs to the global dominating countries. The marketing industry is expected to generate nearly $2 billion annually. Besides, the sports betting business is expected to invest about $615 million on advertisements. Furthermore, product fees would generate over $500 million annually. Thus, the final figures amount to over $3 billion every year related only to advertising.

TV networks are also expected to benefit from sports betting. Namely, television chains are faced with a constant downturn in sports program grading. Regulation of sports gambling could improve this situation as bettors will start watching sports programs to see how the games are progressing.

Gambling Events

Regulated Sports Betting Market

Legalizing sports betting would not affect the labor market and tax income increase only. It will have other benefits too. Namely, it will lead to the following:

  • Advanced transparency in the gambling market;
  • Better protection in terms of game fairness and integrity;
  • Better safeguard for players and clients.

However, it is impossible to create a single framework that would fit and be applied to all states. Each state has its own specific gambling laws, so sports gambling is no exception. Therefore, every state that is looking forward to legalizing sports gambling market would have to come up with its individual fees, taxes, etc., and manage the gaming market on its own.

Regulating sports betting would help to preserve money in the national economy. This would further help U.S. casinos which are gradually going bankrupt all over the country. Actually, a legalized sports gambling market might contribute $2.9 billion to the amount gained from the U.S. casinos. Furthermore, investments from major gambling businesses such as MGM, along with the improvements in internet gambling services, could lead to even better economic advantages of regulated sports gambling than projected.

But one possible issue with states with legalized sports gambling is that not a single one has accepted integrity fees. It was the NBA and MLB that proposed the fees which would grant sports leagues 1% handle from the placed bets.

Online Sports Gambling

The U.K. mobile sports gambling business, which is among the leading in the market, has increased twice as more in the period of five years. Now, it encompasses 60% of the national gambling market. The U.S. legislators could just as well use the U.K. as a model for online sports gambling. In the digital era, smartphones and similar devices could contribute with the income of $9 million. This would increase the overall sports betting income for more than 50%.

The reason for such growth lies in the fact that gaming is much more comfortable via smartphone than riding to the nearest casino a few minutes before the game. Besides, technology and its devices alleviate sports gambling and make it not only enjoyable and convenient but also more lucrative. The U.S. mobile gambling market could turn into the world’s leading due to its mighty and dynamic economy. The partnership between MGM and the NBA is just the beginning of this possibly prosperous business. Thus, sports gambling could be an enormous triumph for U.S. tax income, GDP, labor market, and entertainment, even though it may be a considerable sacrifice for a bank account.

Supreme Court Grants Licences

The first state to legalize sports gambling was Nevada back in 1949. The aim was to defeat organized crime which had spread all over the state, primarily Las Vegas, considering that other sorts of gambling were regulated nearly two decades earlier. Until the abandonment of PASPA, Nevada reveled in a monopoly over all forms of sports wagering. Following Nevada, seven more states have recently approved betting on sports events — New Jersey, Delaware, Rhode Island, West Virginia, Mississippi, and Pennsylvania. But despite the competition, the Silver State managed to handle over $5 billion in 2018, which is a record amount.

For more information about income and tax revenue, refer to the tables below.


As mentioned above, Nevada legalized land-based online betting back in 1949. Mobile betting became available in 2010, but only through apps linked with authorized sportsbooks. The tax rate is the lowest in the entire U.S. and amounts to 6.75%

New Jersey

The Garden State legalized land-based sports betting on June 11 last year, while mobile betting became available only a month afterward. The tax rates amount to:

  • 8.5% (land-based sports gambling income)
  • 13% (casino-based sports gambling income)
  • 14.25 % (racetrack-based internet sports gambling income)


The State of Pennsylvania saw the legalization of land-based sports betting on October 30, 2017. However, it was a year later that sports gambling officially started. Mobile wagering should be launched in the summer of 2019. The tax rate amounts to 36%.


Sports gambling was launched on the very same day when the SCOTUS abolished PASPA, back on May 14, 2018. Unfortunately, mobile betting is not available yet, even though it is authorized. The tax rate is among the highest in the U.S. and is distributed as follows:

  • 50% for the State;
  • 40% for casinos;
  • 12.5% for Scientific Games;
  • 10% for horse racing as a supplement for winnings.

It is important to mention that the state lottery does not perform accounting on the basis of calendar months.

West Virginia

The authorities of West Virginia approved sports gambling on March 9, 2018. The state allows both online and mobile betting, with the first app being launched at the very end of 2018. West Virginia tax rate amounts to 10%.


Land-based sports betting was legalized on March 13, 2017. However, placing bets began in August the following year. The state allows online betting but solely in authorized casinos. The tax rate is 12%, 8% of which goes to the state and 4% to the local authority.

Rhode Island

Rhode Island started accepting land-based sports wagers on June 22 last year. Currently, only two casinos are authorized for sports betting. Mobile betting is not available. The tax rate amounts to a whopping 51% and is the highest in the whole country. It is distributed as follows:

  • 51% for the state;
  • 32% for vendors;
  • 17% for casinos.


To sum it up, the benefits of legalized sports gambling are many and obvious. As we can see, there is a demand for the industry and people are willing to both invest in it and generate profit sufficient to create innumerable jobs and move the US economy further.

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