Casinos, Gambling Companies, Sports Leagues Expected To Be Biggest Winners



Baseball Home Run - North American sports to benefit from the supreme court rulling on sportsbetting.Earlier this week, the Supreme Court ruled that PASPA, which is the Professional and Amateur Sports Protection Act of 1992, is unconstitutional and violates the 10th Amendment.

By ruling in New Jersey's favor (they brought the case to the highest court in the land), the Supreme Court has given individual states the right to legalize sports betting if they choose to.

A number of states, including New Jersey and Delaware, already have provisional laws on the books and have announced their intention to start accepting sports bets within a couple of weeks.

The stakes are massive - New Jersey, for instance, is forecasting that sports betting in their state will create a $10 billion/year industry.

Let's take a look at some of the winners and losers of the Supreme Court's decision:

Winners

States

By legalizing sports betting, states will be looking to collect much-needed tax revenues and create jobs. Prior to the announcement, tens of billions of dollars were wagered at offshore sites and with illegal bookmakers every year. States are obviously hoping that this money remains in their state and generates revenues for their coffers.

Some states will likely choose not to legalize sports betting, though many states are looking to jump in the gravy train.

TV Networks

It has been proven that people who wager on sports consume much more media. That Saturday night game between Hawaii and Eastern Washington is going to get many more viewers if people have money riding on the game.

Expect ratings to increase noticeably once legalized sports betting begins to spread in the United States, which will translate into more money for TV networks as they monetize their massive broadcasting deals with the major sports leagues.

Leagues/Owners/Players

According to Dallas Mavericks' owner Mark Cuban, the value of a NBA team doubled as soon as the Supreme Court made their ruling.

There is absolutely no doubt that the value of every North American league and franchise skyrocketed as a result of this ruling.

In addition to increased TV rights packages in the future, North American franchises will benefit from sponsorship deals with bookmakers and a likely royalty from every sports bet that is placed in the United States. According to reports, the NBA and MLB are both going to be looking for 1-2% royalties on every bet that is placed on their league going forward.

Players will benefit as well, as more money into the league's coffers means more money in revenue splits.

Daily Fantasy Sports Sites

Sites such as Fanduel and Draftkings have massive databases of people who obviously love sports and aren't afraid to put money down on sports. This is obviously a rich database from which to target people who might be interested in opening betting accounts down the road. There is no doubt that the value of Fanduel, Draftkings and others went up drastically as well after the Supreme Court made their ruling.

Casinos

Casinos such as Caesar's have already said that they will be quickly rolling out their sports betting services to states that allow sports betting. Sports betting is a very lucrative business for casinos with a fairly stable margin, and this ruling is going to generate hundreds of millions of dollars per year in fresh revenues for major brick-and-mortar casino operations.

Online Gambling Firms

Firms such as The Stars Group Inc. and William Hill are likely going to prosper in states that allow legal sports betting. William Hill is already active in the state of Nevada, and their CEO recently revealed that his firm has spent millions of dollars preparing for the Supreme Court's ruling. Online betting is going to be a big part of any legalized sports betting landscape and these two firms should benefit a great deal.

-

Now - who are the losers thanks to this ruling?

Las Vegas Casinos and Employees. In a couple of weeks, sports betting will no longer be monopolized by the state of Nevada. This will make Nevada (and especially Las Vegas) a destination for sports bettors from around the country. Instead of flying to Las Vegas to put down a big wager on the Super Bowl, gamblers will be able to choose from a myriad of different states, and that can't be good news for Las Vegas.

Offshore Gambling Firms. A number of offshore gambling firms have thrived thanks to the laws in the United States, as they have taken online bets from residents of the United States. Thanks to this ruling, many Americans will easily be able to bet on sports without having to sign up at offshore gambling companies.

Cryptocurrencies. A large number of online gamblers have used cryptocurrencies such as Bitcoin to fund their offshore gambling accounts. In fact, online gamblers were some of the first adopters of cryptocurrencies in general, as it solved a big problem that they had of moving money to offshore gambling sites. These people will likely find it much easier to wager on sports in the United States, which means that they will likely not need to use cryptocurrencies as much, which may help to weigh on crypto prices in general.

Anti-gambling advocates. This news is, of course, terrible news for anti-gambling advocates, as sports betting will be much more pervasive in the United States.

Filed under: General Knowledge

Related Articles