Sports betting and online football betting are legal in many parts of the world including Australia and Western Europe with the UK’s largest legal market.
Sports betting is legal in many parts of the world including Australia and Western Europe with the UK’s largest legal market. However, the impact of illegal online gambling is much greater: there is an estimated $ 1.8 trillion in illegal wagering worldwide, mostly on unregulated and illegal betting websites. According to a study from 2014, over 80% of sports bets worldwide are placed on the black market.
Why Is It Illegal To Bet On Sports?
There are currently hundreds of bookmakers and apps that enable betting. This has led to an improvement in the current system. For example, the digital currency Electroneum is said to be used by online gambling services, while platforms like HEROcoin want to decentralize sports betting. Since sports betting usually has high fees, new platforms like HEROcoin offer peer-to-peer betting and transparency in the flow of money and payments.
Players betting on sporting events must pay a betting tax on their winnings. Therefore, sports betting has a significant impact on the international economy.
Legal sports betting makes $ 150 billion in profits in the US
In the US alone, illegal sports betting is valued at between $ 50 billion and $ 150 billion. By comparison, Nevada, the only state in the United States that permits sports betting, had sales of $ 4.8 billion in 2017. For comparison: Great Britain with 65 million inhabitants and a far less diverse sports market achieved sales of 20 billion US dollars in 2017. Worldwide, professional football and basketball are the most popular sports to be bet on.
Fantasy Sports versus Daily Fantasy Sports (DFS) versus Traditional Sports Betting
Both fantasy sports and traditional sports betting are popular forms of gambling. However, there are major differences. For one, fantasy sports betting is legal and in fantasy sports, your opponents are other human players and not bookmakers like in traditional sports betting. In fantasy sports, a group of human players called a league selects from real athletes to form imaginary teams. Points are awarded to the team based on each athlete’s performance during the season. To win, your team must have accumulated the most points during the entire season, which usually lasts a few months.
A popular fantasy sport is Daily Fantasy Sport (DFS). The DFS lasts for a day instead of a season. In the morning you bet on different players. While leagues in normal fantasy sports are usually made up of friends, with DFS you compete against random people with whom you are equal. The winning pot can reach millions of dollars.
What are the effects of the implementation of legal sports betting?
Legal sports betting would provide additional tax revenue based on income tax on winnings or as a consumption tax on casino revenue minus those winnings. The American Gaming Association has projected a law in 40 states that could generate $ 8 billion in local taxes, create hundreds of thousands of jobs, and increase GDP by $ 20 billion.
However, there will be many licensing, tax, and potential league requirements that need to be weeded out. In particular, states must also consider who should be taxed and what tax rate is appropriate.
Example Nevada: The current Nevada tax is 6.5% and the Pennsylvania tax is 34%. In New Jersey, sports betting in casinos and on racetracks will be taxed at 8% and online sports betting at 12%. States must also determine where they allow gambling and whether they allow online wagering. Another factor to consider is who to share the sales with, e.g. B. with sports leagues, individual teams, and bookmakers. ESPN conservatively estimates that by the end of 2019, eight or nine states will fully allow sports betting in casinos, on racetracks, and elsewhere. By the end of 2020, it could be 14 or 17. Both the NBA and the NFL have asked Congress to pass a federal law to standardize regulation.