Online Sports Betting & Tax Revenue: The Impetus for Legalisation

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Sports betting was made legal in the United States of America in May 2018 following the Supreme Court’s decision to strike down the previously installed federal ban. Now, when we say that sports betting was made legal, we don’t mean that it was suddenly possible to place a bet on the outcome of a sports game overnight, but rather that every state had the right to choose to legalise it if they saw fit.

Following the Supreme Court’s decision in 2018, over 24 states have taken up the option to legalise the act of placing a wager on a sports game. This article will examine the current state of sports betting in the US as well as outline the reasons why many states may change their view of the pastime in the future.

The Current US Landscape

The online sports betting industry is exploding in America and based on current trends, it will continue to grow for the foreseeable future. If we take a quick look at just two of the states that have legalised online sports wagering, we can easily see that the general population are taking to the pastime like ducks to water.

The online sports handle in the state of Pennsylvania in the first month of 2021 was $579.94 million. When we compare this to the $308.60 million that was taken in January 2020, it is clear to see that the popularity of sports betting is increasing at a staggering rate.

Similarly, if we make the quick trip east to the state of New Jersey, we encounter a comparable situation. The New Jersey Division of Gaming Enforcement announced an online sports wagering handle of $886.65 million for January 2021, almost double the $471.14 million figure for the same month of the previous year.

A Helping Hand

It is clear from the aforementioned figures that the popularity of online sports betting is on the rise and while this is great for the industry overall, it doesn’t come without its potential dangers.

If America is to fully embrace online sports betting in the future, it is initiatives like that of howtobet.com that will allow the nation to do so with peace of mind. The website, often referred to as the betting wikipedia, has recruited the help of seasoned journalists with a passion for sports betting to explain how sports betting works as well as how to enjoy it in a safe and responsible way.

The Impetus for Legalisation

Based on the numbers coming out of New Jersey and Pennsylvania, it is no surprise to learn that they are amongst the states earning the most in tax revenue from sports betting. For many of the states that have yet to legalise online sports betting, these numbers, in combination with budget shortfalls, will have many of them re-considering the legalisation of online sports betting.

The legalisation of online sports betting can be looked upon as a great opportunity for states to open up their doors to new revenue. Furthermore, the standard tax rates on online betting are in the mid-teens, which has led to many states discussing the inclusion of online sports gambling in their economic plans for the future.

The impetus is also there as it will stop individuals in states that are yet to legalise sports gambling from finding ways to bypass the law in order to place bets on their weekly dose of football, baseball or basketball.

The Bottom Line

In conclusion, the opportunity for states to create new tax revenue as well as the public’s clear attraction to the pastime of gambling is likely to have every state yet to legalise online sports betting reconsidering their outlook over the coming the years.