Opinion: The US Government Should Legalize Sports Betting in All 50 States
New Jersey broke the monthly sports betting wager record for the second consecutive month in November.
In October, the record was shattered at $803 million for the state. In November, $931.6 million was wagered in New Jersey alone. This astounding amount might be attributed to the increase in household savings and individuals tuning into sports more. Sports betting is currently legal in 18 states plus Washington DC. Virginia, North Carolina, Tennessee, and Washington recently passed bills legalizing betting, but are not yet operational.
This astounding amount from November will only continue to grow, in my opinion. Betting and gambling, in general, is an addictive habit that can lead a lot of individuals down a scary path. However, in moderation and with certain restrictions the industry could prove an effective tax and GDP boost. Researchers estimate that regulated sports betting could bring in $6 billion in annual tax revenues for states by 2023. Furthermore, the legalization of sports betting would create jobs in a time where more than 10 million Americans are out of work due to the pandemic.
There are a number of popular corporations that already operate in legal sports betting such as Fanduel, DraftKings, and Barstool Sports. Additionally, whether lawmakers are truly naive or just turn a blind eye, sports betting is happening illegally. Researchers estimate that between $150 and $300 billion is wagered on illegal books annually. These bets generate $0 in tax revenues that states desperately need right now.
Stay tuned for my article on potential investments in the industry in the near future.