Delaware’s legalised sports betting market is off to a flying start as the state’s three casinos raked in $7 million in the first 20 days of trading. Governor John Carney ushered in a brave new era when he placed the first sports bet on 5th June, winning $20 on the Phillies. But residents of the First State were less successful in the ensuing 20 days, as new figures reveal that the Delaware sportsbooks held $1 million of the $7 million wagered. That far outstrips the average hold of 5% reported by most operators and it suggests that Delawareans have a few things to learn when it comes to grasping the intricacies of sports betting.
Carney placed his bet at the Dover Downs Hotel & Casino, but Delaware Park’s sportsbook emerged as the clear victor out of the three. It accounted for $5.23 million of the sports wagering revenue and $653,000 of the win, while Dover Downs’ revenue was $1.18 million and Harrington Raceway took in bets of $590,000. Analysts estimate that sports betting will initially be worth a minimum of $23.1 million to the state on an annual basis, and at least $49.6 million when online sports wagering is rolled out.
Beyond PASPA
Delaware was the first US state to legalise sports betting after the US Supreme Court struck down a federal ban preventing it. Until this summer, only Nevada had been able to offer sportsbooks, as it had an exemption from the Professional and Amateur Sports Protection Act (PASPA) of 1992. New Jersey, which launched a lengthy legal battle with the major sports leagues in a bid to see PASPA struck down, was hot on Delaware’s heels and several Garden State casinos started accepting sports wagers in June. The move is set to be worth $10 billion to the New Jersey economy, as it is a far more populous state than Delaware.
Monmouth Park was the first casino in the state to get up and running, followed by Ocean Resort Casino and the Borgata in Atlantic City. The fourth site will be the Meadowlands Racetrack, which will start accepting its first sports bets on 14th July. That will allow locals the opportunity to place a bet on the World Cup final, and it also coincides with one of the track’s biggest race days, the Meadowlands Pace.
Which are the Next States Likely to Legalise Sports Betting?
Politicians across the US recognise how important legal sports betting could be in raising much-needed revenue for public services, and several states are racing to join Delaware and New Jersey in this lucrative enterprise. Pennsylvania is proposing a $10 million licensing fee for operators and a 34% tax on winnings – which would dwarf Nevada’s 6.75% – but it does not yet have a timeline for when sports betting will be introduced. “Gaming expansion for sports wagering and the other forms were done to make sure that we’re gaining more revenue, so we’re moving as swiftly as possible,” said State Gaming Control Board spokesman Doug Harbach. “But we’re always going to ultimately protect the public. That’s why we’re going to make sure that this is done right.”
Legislators in New York hoped to introduce legalised sports betting quickly after PASPA was struck down, but the plans could not gain the requisite support. “I would say at this point, there isn’t enough support within the Democratic conference to forward on sports gambling,” said Democratic Senator Carl Heastie from the Bronx. Sports betting is now unlikely to start in the state until 2019 at the earliest. Instead legislators will be forced to see residents heading over to the Meadowlands, located near the home of the Giants and Jets, to place sports bets. That will mean potential revenue leaving New York and going to a rival state, and proponents of sports betting hope that will convince the Democrats to relent, particularly when public services are crying out for a financial boost.
Rhode Island, West Virginia, Mississippi and Michigan are the frontrunners to be the next state to introduce sports betting. Rhode Island has officially approved a sports wagering bill and earmarked $9.6 million to provide a framework for the sector. It will charge operators an eye-watering 51% tax on winnings. The remaining share of the revenue will be go to the platform provider and casino operator of Twin River Casino, which will host the sports betting activities.
West Virginia will offer online and land-based betting through the FanDuel app just in time for the upcoming NFL season, which commences on 6th September. Daily fantasy sites FanDuel and DraftKings grew in popularity when sports betting was outlawed in the US, and now they are converting their expertise to sports wagering. FanDuel will partner with The Greenbrier Resorts near White Sulphur Springs to offer West Virginians a sportsbook. The deal between these two firms should be inked at some point in July. Mississippi has passed a legal sports betting bill and it aims to get it up and running before the college football season begins in August.
Michigan’s bid to push through sports wagering hit a snag amid opposition from tribal casino operators. The House passed a sports betting bill a few weeks ago, but a second bill is needed. Republican Brandt Iden said: “A follow up is required and, now that we have the votes on this issue, I know I can put forth additional legislation and have people be supportive.” He promised that Michigan would “be at the forefront” of the new gambling movement sweeping the nation and that deliberations would begin “when we come back in the fall”, when the legislative session reopens.
US Sports Betting - Next Steps
Experts estimate the total size of the illicit sports betting market in the US is around $150 billion annually. Rather than see that continue, state legislators are likely to push through laws that allow it flourish in a safe, legal environment and, most importantly, tax it. When they see the results in New Jersey and other states that have given sports betting the green light, they will probably yearn for a piece of that action.
The economic argument should be enough to slap down opponents in most states and in the not too distant future sports wagering could well be legalised across the vast majority of the country. The one obvious exception could be Utah, which has a strong anti-gambling stance, but most should eventually jump aboard the bandwagon, creating a colossal industry that will be full of exciting opportunities.
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Image Credits Phil Roeder Peter Miller Wally Gobetz Javier ie