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  1. #1
    The Buzz's Avatar
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    Default Americans have bet $220 billion on sports in five years since legalization

    It's been five years since PASPA was abolished by the U.S Supreme Court, paving the way for leaglized and regulated sports betting ti explode in the states. Since that time, americans have bet over $220 billion on sports with legal gambling outlets and the industry shows few signs of slowing despite some recent scandals that have put a spotlight on wagering safeguards.

    From the AP:

    When Sunday’s anniversary of the court ruling in a case brought by New Jersey arrives, two-thirds of the country will offer legal sports betting, with additional states likely to join in coming months or years.

    The fast-growing industry is also far-reaching: its advertisements reach into most U.S. homes during sporting events and even non-sports programming. Few TV viewers have been spared from repeated ads featuring a Caesar character discussing sports gambling with members of the Manning football dynasty, or from actor Jamie Foxx placing sports bets in between takes on a film set.

    “While the milestones of legalized sports betting that have led up to now are remarkable, this industry is excitingly still far from being fully realized,” said Jason Robins, CEO of DraftKings, one of the industry’s two dominant companies. “Legal betting is already part of mainstream sports culture, and I anticipate this trend will grow as adoption increases. The accessibility right now for fans to place a live, micro-bet during a game, for example, shares parallels with other smartphone-powered capabilities like hailing a ride, buying a stock, or playing a podcast.”
    The $220 billion figure includes wagers made through the end of March in most states, according to the American Gaming Association, the gambling industry’s national trade group. It is up from the $125 billion that had been wagered at the four-year mark.
    Consider this: Sports books generally keep about 10% of all the money they handle, after paying out winning bets to customers.

    The amount of money kept by sports books as winnings over the last five years is $17 billion, according to the American Gaming Association, the gambling industry’s national trade group.

    Over that same period, sports betting taxes on operators have generated almost $3.6 billion: $3 billion for state and local governments, and $570 million for the federal government. In many cases, an individual state’s take amounts to a drop in the bucket.
    Five years in, just two companies — FanDuel and Draft Kings — control over 70% of the legal sports betting market in the US, according to the gambling analytics firm Eilers & Krejcik.

    In the 12-month period ending with Feb. 2023, FanDuel has just under 46% of the market, while DraftKings has over 25%. BetMGM has nearly 12%, Caesars Entertainment has 6.7%, and no one else has more than 2.4%, the company said.
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  3. #2
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    TheGooner is offline Private Member
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    Quote Originally Posted by The Buzz View Post
    Consider this: Sports books generally keep about 10% of all the money they handle, after paying out winning bets to customers.
    This statement is demonstrably untrue - the typical sportsbook overround (aka "juice or 'vig" in US slang) is about 3% to 5% which is clearly obvious in the odds.

    Sportsbook odds in most US sports are done with handicap starts and it's common to see bets priced at -110 for each side with a handicap point total on the favourite. (Decimal odds are approx 1.91). Some books run even tighter.

    Odds of -110 are roughly explained to the layman as you bet $110 and if it wins the bookie pays then you get your stake back plus an extra $100.

    So take the example of a small book, it takes two bets of $110 - one for each team - and then pays out $110 + $100 = $210 to the winning player - the book keeps $10 profit.

    $10 / $220 = 0.045 or 4.5% profit - and that's BEFORE any staffing costs, compliance costs, running costs and taxes.
    It's a long way away from the quoted 10% gross profit.

    When a report gets the basic tenets of their article wrong - I can't trust a word that is written as fact - it's likely all poorly researched or based on rumour and hearsay.

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  5. #3
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    Even with recent scandals highlighting the need for robust safeguards, the sports betting industry seems unstoppable.

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