The months of April and May have been fantastic when it comes to U.S. sports betting. The state of Montana legalized first, and most recently, Indiana also made sports betting legal. With these two states passing legislation, a fifth of the country has legalized gambling on sporting events since the U.S. Supreme Court overturned the federal ban on sports betting.
While some states like Montana and Indiana are finding success for sports gambling legislation, others like Colorado and Utah face much harder routes to passing any bills. Utah is more of a special case because gambling is banned by state constitution, but lawmakers in other states find opposition mainly because of the effect it has on gambling addiction.
Part of the problem with this line of thinking is the fact that illegal sports betting is very popular. If someone has a gambling addiction and wishes to place bets on a sporting event, they can surely find a way to do so regardless of legality. Because of this, creating a legal form of placing sports wagers doesn’t necessarily mean it will influence gambling addiction.
In fact, if states choose not to legalize sports betting, they are losing out on free tax revenue that could be used for important public funding needs, like education. Some larger states have made tax revenue estimations of upwards of $50 million, but more-modest figures of $5-10 million may be more appropriate. Not significant in the grand scheme of things, but enough to make a difference without needing to put in much effort.
This amount only stands to increase as the market for sports betting continues to grow at an astounding rate. In 2018, the sports betting market was worth $405 million, but it is projected to grow by between 5 and 15 times that size by 2023. If projections are realized, that means the U.S. sports betting market will be worth between $3-$5 billion within just five years.
With the this impending growth, companies that offer sports betting solutions stand to be an excellent investment opportunity. One of your best choices is Kambi, a company from Europe that offers real time odds for DraftKings and Rush Street. These partnerships allow the company to prepare for offerings in states that do end up legalizing.
There’s still 40 states to go, but it is a great sign to see 10 states already with legalized sports betting within a year of the overturned ruling.