The legalization of sports betting began in earnest in 2018. That year, the Supreme Court overturned a federal ban on sports betting across the U.S.
States took advantage right away, passing legislation for betting on sports. Gambling companies worked with regulators to serve as mutual benefactors.
The idea was to tap into a legal gray area associated with offshore sports betting. (That market might be worth anywhere from $50 to $200 billion.)
Today, dozens of states have legalized some form of online gambling. Many states still outlaw the practice in any form.
States in the U.S. tax sports betting somewhere between 10% – 15%. Others tax it as low as 6.75% or as high as 36%.
The lowering of gambling taxes allowed the industry to thrive in the 20th century. From Las Vegas, casinos began opening elsewhere around the country. A reduction in taxes brought sports betting to life.
How does sports betting affect the economy?
Let’s take a closer look.
When it comes to sports betting, any negative publicity in the past might have been overblown. Las Vegas had a near monopoly on gambling, and its top gambling companies sought to keep it that way.
The end of the prohibition of sports betting in the U.S. turned a powerful tide in the industry. First, the Gambling Act of 2005 in the U.K. allowed betting companies to advertise via sports.
Those advertising dollars help to fund teams and leagues. The gambling industry also began creating jobs and generating tax revenue.
In the wake of legalization, competition among sportsbooks started to skyrocket. Americans spent over $125 billion on sports betting between 2018 and 2022. That brought in more than $1 billion in state and local taxes.
Governments could use those tax dollars for building schools or other infrastructure projects. It also goes back into education and the prevention of harmful gambling practices.
Certain states might tax online gambling much more than land-based wagers. For that reason, bettors may stick with offshore sites.
That helps some of the top offshore sportsbooks like BetUS stay relevant.
The gambling industry as a whole needs to maintain a positive reputation. Online betting is a significant part of sports anywhere around the world.
That trend continues to grow at an enormous pace.
Sports betting revenue in the U.S. soared to $4.33 billion in 2021. That represented a 1,000% increase in four years. Easy access to reliable payouts helped to ignite the popularity of gambling online.
By 2025, online sports betting revenue might be worth three times as much as land-based. Between 2023 and 2028, the industry might experience a 10.23% compound annual growth rate.
The U.K. retains about 30 million online gambling customers per year. Europe represents the largest market share.
Other top regions include North America and Asia-Pacific.
Gambling companies that take part in legalized markets dominate the industry. They can cover licensing costs in places like the U.S. and the U.K.
Offshore companies pay for licensing in Curacao, Costa Rica, Gibraltar, or Malta. It keeps taxes lower while it prevents them from operating under statewide regulations.
Instead of paying for licensing in each local jurisdiction, they operate in a legal gray area. That benefits gamblers in places where legislation has stalled or remains stonewalled.
It also allows offshore sites to permit deposits and withdrawals with crypto. Fast and safe transactions ensure repeat customers. Some players might prefer to keep their gambling activities private.
It’s up to the consumer to decide where to spend their money. They should be responsible for choosing online sportsbooks. Offshore sites stay in business by offering a product or service where there is a great demand.
Is offshore sports gambling legal? That depends on your jurisdiction.
Some legislators may crack down on offshore gambling. If so, that generally happens in areas with a conservative gambling approach.
Legalized betting may be a minor threat to offshore betting sites. The real threat might be the other way around.
Offshore gambling has been around for decades. Its popularity garnered much publicity in the 2000s with online poker sites. Those sites merged with brick-and-mortar casinos to create a community of gamblers.
Offshore sports betting remains illegal in certain areas. Gambling companies are aware of those regulations. Local authorities decide who gets to take part and where within their jurisdiction.
At the micro level, offshore betting is illegal to “protect consumers.” At a macro level, ongoing legalization might help to boost offshore sports gambling.
Bettors can still choose their favorite sportsbook based on personal preference.
Online sports betting continues to thrive in popularity all across the world.
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