PUBLIC POLICY
PASPA’s repeal, sports bettors in now-legal states placed their wagers on offshore platforms and through illegal channels, which lure individuals with unrestricted gambling 2 and encourage heavy gambling despite signs that some individuals are vulnerable to addiction. Strongly regulated, state-sanctioned betting markets benefit from ensuring their bettors’ long-term safety and well- being. The regulated industry is obligated to adhere to strict guidelines and standards, guaranteeing fair treatment of customers and execution of payouts as promised. States that have legalized sports betting can regulate problem gambling, including educating and warning people 3 on the dangers and signs of gambling addiction, screening people for problem gambling, and offering voluntary bans and betting limits to those who would like them. Unregulated markets, meanwhile, have no such interests or concern over protecting individuals engaging in problem gambling. Thanks to the rapid growth of the legal sports betting industry in the U.S., major operators have been able to collaborate over the best ways to protect customers and promote responsible gambling. Last year, a coalition of market-leading operators agreed on industry principles for responsible gambling 4 , including commitments to support a unified, nationwide responsible gaming toll-free helpline and provide applicable employees with responsible gaming training upon hire and regularly thereafter. This level of cooperation would not be possible in a black market, and it is ultimately to the benefit of the industry’s customers. While the legal betting age varies based on the state and type of gambling, every state in the country with some form of legal, regulated gambling has a minimum age requirement between 18 and 21. Black market sites have limited safeguards in place to prevent underage bettors from accessing their platforms, which opens the door to underage gambling and harm. Regulated, licensed operators, however, have comprehensive standards to ensure that only those of legal age can gamble.
The practical implementation of age restrictions in legal markets allows states to regulate and operate the sports betting industry responsibly, to the benefit of bettors and sportsbooks alike. As more states pass legislation legalizing and regulating sports betting, the industry experiences gains in visibility and oversight. The main benefit of passing sports betting legislation is simple: by legalizing, legitimizing, and regulating sports betting, we can adequately track the industry and its customers to ensure a safe, fun, and transparent environment. Economic growth When states decide to regulate and legalize sports betting, they create new statewide industries that generate revenue and career opportunities. From sportsbook operators and marketers to hospitality staff and technology experts, the sports betting industry’s growth is creating careers — not just employment — across the nation. In New Jersey, a pioneer in the legal sports betting market, thousands of jobs were generated within the first year of legalization 5 . This trend has been consistent across states that have embraced regulated sports betting, and it is poised to continue as the industry expands. The economic stimulus of sports betting extends beyond the operators themselves. Ancillary businesses, such as sports bars, merchandise stores, and local event planners, have grown significantly thanks to the sports betting industry. Consider Buffalo Wild Wings, a popular sports bar chain that has embraced sports betting by offering customers a seamless betting experience. This move not only enhances the customer experience but also translates into increased revenues for the restaurant chain. The economic ripple effects of legalized sports betting extend further into the realm of sponsorships, advertising, and
2 https://www.racingpost.com/news/features/revealed-the-tactics-black-market-bookies-use-to-coax-punters-to-offshore-sites-avZsc8C48sRB/ 3 https://pausebeforeyouplay.org/2022/02/sports-betting-ads-how-much-is-too-much/ 4 https://www.entaingroup.com/news-insights/latest-news/2022/leading-us-online-operators-launch-principles-for-responsible-gaming/ 5 https://www.igbnorthamerica.com/study-nj-online-gambling-created-1851-jobs-last-year/
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IMGL MAGAZINE | JANUARY 2024
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