People often view sports betting as something negative as it can be considered a type of gambling. However, ever since sports betting was tagged illegal, the industry has continuously battled the state to legalize the practice. And finally, in 2018, the federal ban on sports betting was lifted off. Further, the decision to legalize sports betting and gambling was left to individual states.
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To date, a lot of states across the United States have legalized sports betting, but a few still remain in rage. It’s the truth that sports betting happens in every sporting event. Yet, some people don’t agree with this idea. If you look at the bigger picture, sports betting is the main reason why sports gain much popularity. It attracts more fans and makes sports events more exciting.
As the debate for legalizing sports betting continues in several states, it is being actively practiced in states where it is legal. If you are unsure why states should legalize sports betting, here is an article about the three reasons why the practice requires attention. Let’s get to know the advantages sports betting offers not only to bettors but also to the states and general public.
#1 – Improved Tax Revenue
By legalizing sports betting, state governments are allowed to tax the practice. So, when gamblers place bets on the black market, the state government loses its chance to earn income through taxation, as all the transaction happens off the books. So, alongside making the industry safer for bettors, legalization will also help local states and the federal government gain massive revenues.
As states get to choose the tax rates they charge for sports betting, these rates can vary from state to state. For this reason, some states have significant percentage rates than others. For example, according to WSN, Pennsylvania charges the highest sports betting tax of 36 percent. And, in Arizona where soon online gambling will be legal, wagers in person are taxed 8 percent, and mobile bets are taxed 10 percent.
The sports betting market is already quite vast, and it is only expected to grow further. According to a market report, it is projected to contribute more than $8 billion in tax, which will prove to be highly beneficial for the government. Furthermore, the government can use the additional revenue they gain to improve other aspects of the economy like healthcare, education, infrastructure, transport networks, etc.
#2 – Creates New Job Opportunities
A legalized sports betting industry will open up hundreds of new jobs in local areas. As can already be seen in states that have legalized sports betting, new casinos opening create a wide array of job opportunities both directly and indirectly for local residents with varying skills levels. This would also support the operations.
According to market research, legalized sports betting is estimated to open up more than 200,000 jobs in the US, thereby increasing the overall GDP to outdo the output of Iceland. Moreover, as most sports betting is performed online, we might also be able to witness a significant rise in the demand for skilled coders, website administrators, and other staff necessary to run big online businesses.
On the other side of the spectrum, if states fail to embrace online sports betting properly, like New York, they might suffer substantial financial losses in the long run.
#3 – More Exciting Games Will be Introduced
Though they don’t express it in front of the public, the leagues find sports betting quite beneficial, especially as they boost interest and engagement in every game. This is because so many people watch major sports events like the NFL and the NBA because of the money they earn from sports betting, not because they enjoy watching the top stars play.
The majority of bettors in the US demand a safe and secure way to bet on sports games as people do in Australia, Europe, and numerous other countries worldwide. So, it will prove to be advantageous for fans, the states, and even the leagues that ludicrously oppose it.
The discussions regarding the legalization of sports betting have been happening for decades, and it seems that a milestone has already been reached. But, regardless of the laws, people are still betting on sports. So, it would be wise for states to make sports betting legal in order to grab their share of the action. While not all states are on board currently, it won’t be long until the remaining states embrace sports betting.