In recent months the topic of legalizing sports betting has become a popular topic in the media. While some states are already moving ahead, many are in the debate stages, considering the pros and cons. While it’s predicted that all states will eventually legalize it to capitalize on the financial gains, it’s not something that will happen overnight.
A lot of people are very opinionated in regard to the topic, so we spoke with several business owners to get their take on the benefits of sports betting, from a business perspective. Here are several benefits to consider.
Increased tax revenue.
This is the main reason states are going to jump on this trend. Mainly because they don’t want to lose tax revenue to neighboring states that do allow it. As more states start to allow it, we will see a snowball effect. No state is going to want to lose potential revenue to the next state. Those that do wish to participate will travel, so you might as well avoid losing tax revenue.
More help would become available for those that need it.
There is a problem with gambling and sports betting for some, and if it became more accepted and legal, it would open the doors to more treatment options for those that needed help. “I think the states that do legalize it will also have to roll out help options, which could prove to be beneficial to many people,” says Sukhbir Singh, Director of e-sandhurst.com. While some are able to participate in a responsible manner there are always going to be those that go overboard and put themselves in difficult situations, requiring assistance.
Viewership will become more exciting.
With legal sports betting it will make the events more exciting from a viewing stance. More bars and entertainment establishments can leverage this excitement to draw fans and fill their seats. It will have a major trickle-down effect on local economies and businesses. While not all establishments will be able to take bets, they can host viewing parties for those that have placed wagers, creating an exciting environment.
More jobs would be created in local economies.
Any time you introduce something new that comes with a lot of buzz it’s going to open the door for new businesses, thus creating more local jobs. “Sports bars will be booming with traffic, and restaurants can leverage the interest to pack their bar area as well. Savvy business owners will be able to find a way to use the interest to their advantage,” says Blake Brossman, Founder of PetCareRx. The states that go legalize sports betting will also need to create new departments to oversee and manage the activity.
Safer environment for those betting on sports.
As it becomes widely accepted and those wanting to place bets can do so at legal establishments it will reduce the amount of illegal and underground betting. A lot of bookies will see interest decrease, while many people will turn to the legal option if available. Not only is it safer, but there will be more control and options. It will be up to each state to determine how and where its residents can bet on sports.
Reduction of illegal operations.
“There will be much less gambling activity in the back rooms of bars and through random shady characters. Legal sports betting will work to help clean up and reduce the number of illegal operations out there,” says Claire Cheung, Marketing Manager of Money Kinetics. This will also take a major chunk of the illegal sports betting websites, which many turn to, having to fund overseas accounts in order to participate.
Sports’ integrity would be protected.
There is such a gray line these days betwen sports and betting, but if it was legal then the integrity of the game would be protected. “There would be no question whether or not people were betting on a particular game. One would now assume that every game and every match was the subject of betting.
Opens the doors for new technology and companies.
If sports betting becomes legal across the majority of states then you can be sure that it will spark thousands of new betting websites, new apps, and new startups. “There is set to be a flood of state-specific websites and apps, all dedicated to placing bet, monitoring winnings, and cashing in on wins,” says April Gillmore, CEO of ClickFirst Marketing.
New investment opportunities.
Just as mentioned above, there will be new startups launching daily in this space, most of which will require funding. “The investment opportunities will be plenty, and since it’s in the gambling space that will mean several lucrative deals in terms of funding amounts, and also in terms of successful exits,” says Jonathan Long, founder of blerrp, an online community for entrepreneurs. We will no doubt see some major players emerge and start to absorb and acquire companies.
Reduce Las Vegas’ dominance.
Right now Las Vegas dominates the sports betting world. “As more states become legal, it will greatly reduce Las Vegas’ dominance, and take a major bite out of their economy,” says Ashley Wong, Digital Marketing Specialist at Loan Authority Singapore. This is going to level the playing field and make Las Vegas a less desirable travel destination.