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Gamblers Are Betting Billions on Super Bowl LV. Here’s What to Know About Legal Sports Betting.
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The Super Bowl isn’t just for watching the big game (and of course, all the commercials). For some enthusiasts, it can also make money, thanks to a phenomenon that used to be confined only to Nevada but is now happening across the U.S.: legal sports betting.
In this world — which these days happens mostly online — no event is bigger than the Super Bowl. This year, as many as 23 million Americans may bet on the Kansas City Chiefs or Tampa Bay Buccaneers, and on many other aspects of the game, according to a forecast from the American Gaming Association. Their cumulative bets may surpass a staggering $4 billion.
Being able to bet legally on sports is a relatively new development in most of the U.S., where sports betting was legal only in Nevada until 2018.
That was when the U.S. Supreme Court struck down as unconstitutional a federal statute — the Professional and Amateur Sports Protection Act, or PASPA, of 1992 — which limited regulated sports betting to Nevada. It’s now legal in 20 states, and many others are pushing to legalize it.
The growth of legal sports betting has been “extraordinary” since then, an ESPN story said.
“In 2019, over $13 billion was legally wagered,” says Casey Clark, Senior Vice President of Strategic Communications at the American Gaming Association. “Once all the numbers are counted for 2020, that figure will be over $21 billion.”
The sports betting capital of the United States isn’t Nevada anymore: It’s New Jersey, where people placed $6 billion worth of bets last year compared to $4.3 billion in Nevada, according to sports betting expert Darren Rovell.
With people confined at home because of the pandemic, 80% of gaming nationwide happens on mobile devices, Clark says.
“Nearly every American will have a casino in their back pocket at all times,” says Marc Edelman, an expert in sports law who teaches at Baruch College’s Zicklin School of Business, in New York. It’s reasonable to expect a majority of states to legalize online sports gambling within the next five years, Edelman says.
Pro Tip.
If you want to bet on the big game, experts recommend only betting as much as you’re looking to lose, and treating it as entertainment only.
With the growing ease of betting legally on sports, you might be asking yourself: Should I join in?
There are people who have picked their bets correctly and made millions, Edelman says, but they’re few and far between. “For most people, betting is meant to be an activity of entertainment instead of investment,” he says.
In fact, if you think you’ve got what it takes because you are a big sports fan, you might want to think twice: sports betting is a game for numbers geeks. Those who have traditionally been the most successful at it, Edelman says, are people with strong mathematical skills who can consider complex analyses.
For those enthusiasts, there are two main players in the sports betting industry, websites FanDuel and DraftKings. They dominate the market in the states that have what’s known as “full online sports betting with multiple options” — Colorado, Iowa, Illinois, Indiana, Michigan, New Jersey, Pennsylvania, Tennessee, Virginia and West Virginia, according to sports betting news and analysis site Action Network.
In most states today, sports betting is still illegal. The others fall into three groups. In one, such as New York, sports betting is legalized in a small number of brick-and-mortar casinos. In another group, such as Tennessee, online sports gambling is allowed, though sports betting in casinos is not. In the fourth group, such as New Jersey and Pennsylvania, sports betting in both casinos and online is legalized and regulated.
Anywhere you may be, though, sports betting is still betting, with all its risks. You should not bet more than you can afford to lose.
Clark notes that his organization put together a PSA earlier this year, Have a Game Plan, for bettors to educate themselves on how to bet responsibly. They can also use an interactive map to get more information on what type of sports betting is legal in their state.
For people who want to bet on the Super Bowl, Edelman suggests betting a small amount of money, and doing it for entertainment only: “Don’t put yourself in the kind of position [where] losing will have any adverse effects on your day-to-day,” he says.
You should stick to a licensed sportsbook like PointsBet, as well as FanDuel or DraftKings, Edelman advises. Doing so will ensure your potential winnings will be paid to you and minimizes the risk of identity fraud.
If you prefer to bet in person, “make sure you’re doing it in a fun and social way with people you know and trust,” he says. (As well as respecting social distancing and any COVID-19 guidance from local authorities, of course.)
Super Bowl or not, sports betting can be a fun way to make some extra cash if you are able to do so safely, but we definitely don’t advise partaking as a short- or long-term financial strategy. If you’re looking to grow the money in your bank account in a low-risk way, you’ll be much better off putting it in a high-yield savings account and enjoying the Super Bowl like most Americans do: focusing on the commercials, not the bets you may have made.
Legal US Online Sports Betting – Which State is Next?
Ever since SCOTUS ruled in favour of striking down the 1992 PASPA Act, competition to get on with online sports betting across the US has been high. States such as New Jersey, who played a key role in the SCOTUS decision, were ready and waiting to legalize online sports betting in 2018. Other states have taken a bit longer to get there.
Two of the latest states to legalize online sports betting have been Virginia and Michigan. While Virginia officially became the twentieth US state to legalize and launch betting sites, Michigan has been offering in person sports betting since March of 2020.
However, with the news that Michigan has just made online sports betting throughout the state legal, top sportsbooks are launching their betting platforms as quickly as they can. Michigan’s official launch into the realm of online sports betting, saw at least ten sportsbooks open shop at the same time, with another five ready to go within the next few weeks.
Michigan is one of the larger US states, with a population total that ranks them as tenth largest in the country. Virginia isn’t far behind, and is currently ranked as the twelfth largest state. Both will be significant territories for online sports betting operators, and major growth is expected to boost the industry going into 2021 and beyond.
The news of both states legalizing and launching online sports betting sites, virtually at the same time, has every bettor excited about the future. With that in mind, we take a look at states that have not yet moved to legalization, with a view to speculating who will be next to pull the trigger so to speak.
Maryland.
Maryland has already made some very promising moves in the right direction, having voted to legalize online sports betting within the state during the past November 2020 election cycle.
Interestingly, the results of the vote to legalize online sports betting within the state of Maryland, was close to a two to one outcome in favour of the bill. Furthermore, the result makes Maryland the last state within the mid-Atlantic region to vote to legalize online sports betting.
New York.
New York is actually already half way there, and launched in person sports betting back in July of 2019. However, they stopped short of legalizing online sports betting, which did disappoint a lot of New York sports betting fans.
That said, the recent news of New York Governor Andrew Cuomo saying that he is in favour of the legalization of online sports betting caused quite a stir within the industry. The case for legal sports betting within the state is looking very good, considering what New York has been through with Covid 19, widespread industry shut-downs and a mass exodus of residents from the state. Many speculate that legalizing online betting would be a viable way for the state to recoup or repair budget deficits which run to the tune of around $50 billion.
North Carolina.
North Carolina has had legal sports betting since 2019. However, this has been in the form of in person sports betting, which can only be accommodated at two tribal casinos, both located in the western part of the state. As far as legalized online sports betting via a mobile app, things are not looking that great at this stage. One of the main issues here, is that North Carolina prefers to run all casino and sports betting activities through its tribal-held casinos. At this stage there are no plans to expand into the online sports betting realms, and the two land-based locations remain the only two sports betting options for residents of the state.
Louisiana.
Much better news for residents of Louisiana, as the state passed online sports betting laws during the November 2020 election cycle. This means that residents of the state will be able to enjoy unrestricted sports betting in fifty five parishes throughout the state. That said, residents should be patient as the state has not had a great track record in the past. This is especially true when one considers that it took them two years to get the ball rolling on DFS (Daily Fantasy Sports).
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