A recent Supreme Court decision paved the way for states to legalize sports betting. As a result, thirteen states have legalized or are in the process of legalizing sports betting. The remaining states are actively debating whether to legalize or not. In addition to New Jersey, West Virginia recently legalized sports betting. However, before these states could legalize the industry, Delaware North shut down two retail sportsbooks.
As sports betting becomes more accepted and legal, the industry is expected to become a third revenue stream for sports media companies. This could drive up the price of media rights and add value to smaller sports properties. For example, BetMGM recently signed a deal to become the exclusive gaming partner of the National Lacrosse League. Although lacrosse is a relatively minor sport among the U.S.’ big five sports, it’s worth mentioning that sports betting could make any sport more valuable to gambling operators and media companies.
Another example of how sports betting can be lucrative is when people bet on major outsiders. In September, for instance, the St Louis Cardinals were five games out of the wild card spot. A punter who bet on them won $375,000, and the Cardinals won the World Series.
In the United States, sports betting is legal in New York and Connecticut, but a number of states are on the verge of legalizing online sports betting. The New York state gaming commission recently released statistics from November 2020, reporting that sports betting revenue was $2.6 million for the month. While South Carolina does not currently allow sports betting, the state legislature has passed two bills on sports betting in the last three years. In 2020, the state of South Dakota is likely to approve sports betting and mobile sports betting.