Opinion: Looking Back on 2022, Looking Back on a Year in Sports Betting

As we head into the end of 2022, it’s worth taking a look back at some of the big stories that have swept the sports betting industry.

Some highlights were good, some were bad, and some were ugly.

There have been many events across the US sports betting industry over the past year, but for some reason few have stood out as important to me.

new york, new york

There was probably no bigger story in sports betting last year. New York The market will go live in January, just in time for the NFL playoffs. Of course, the long-awaited New York launch was not without controversy.

Controversy continues as to the tax rate to be levied on businesses. Yet, despite some claims, 51% The lack of tax and promotion deductions will likely result in companies not sticking around, but the party is still pretty full.

New York is swimming in sports betting tax revenue (at least compared to other places).Paspa State – an incredible feat.

Despite the success of the tax rate, the industry remains frustrated and does not seem to expect any change.

Launch of an epic sports betting experiment

Shortly after New York launched sports betting, our northern neighbors launched an interesting experiment.

For years, online sports betting has Canada It existed in a hazy legal realm. The ambiguity surrounding betting alone has resulted in a fairly gray market, with many big name names serving Canadian customers.

Canada’s online gray market has been around for decades and can be a fairly safe place for businesses to exist without explicit authorization.

why gray is bad

But the gray market has raised two concerns for Canadian politicians. One, it was not regulated by Canadian authorities, and two, wagers were tax-free. The tax-free amount was subject to tremendous exaggeration down to regulated single-game betting, but it was no trivial amount.

Before sports betting is approved Ontario It chose to break away from the decision-making process of other countries and allow private operators to participate in the playing field. The decision included allowing former gray market companies to cross the bridge into the regulated market.

The results look successful, at least according to Ontario officials. They report that black market activity has (currently) declined significantly. Other prefectures must be paying attention.

The Ontario experiment may even be seen as a pathway to one day allowing offshore operators to enter the U.S. market, but at this point it seems years away. wire act and the Department of Justice It remains a possible failure.

find the hard way

One of the big stories this year was the loss of voting initiatives in states where tribal governments are key game stakeholders.

Back in January, parts of the commercial sports betting industry suffered a spectacular defeat after spending tens of millions of dollars to take questions about legalizing sports betting in the November vote. was broken. Florida. There were two initiatives. sands group to expand the game launched by a group called Florida Education Champion, fan duel When draft kings.

Two initiatives are Seminoles of Florida, spent a lot of money to defeat the measures. Ultimately, neither bill attracted enough signatures to put him on the ballot in November.

California (bad) dreamin’

all over the country California, operators attempted to get the ballot measure in front of voters in the November midterm elections. The operator successfully participated in the vote in California, but ran into trouble when many of California’s gaming tribes opposed the bill and went to great lengths to defeat it. largest operator in the country.

An online sports betting bill was passed, but was defeated by an incredible margin and gained support. 17% of voters. His second move to allow sports betting in tribal casinos and licensed racetracks fell through. This may be the result of a reciprocal advertising campaign.

The voting battle showed that entering states with strong gaming interests and trying to impose a new model without the support of those interests is not a cheap proposition.

Continued expansion of sports betting

The fourth and final trend for 2022 is that sports betting continues to expand nationally. Progress has slowed as the number of states that still do not have regulated sports betting is declining.

Nevertheless, there was still an expansion in 2022. Massachusetts The most anticipated approval. After years of speculation by some game commentators that this could be the year Massachusetts legalizes sports betting, it’s finally happening.

maine Also after gaining traction, he crossed the finish line after past efforts faced obstacles. Both Massachusetts and Maine have him scheduled for launch in 2023.

What’s Next for US Sports Betting?

Some of the big questions going forward are whether any states will cross the target line in 2023.

miracles might happen texas? do Oklahoma Is there any chance of passing the bill despite the frosty relationship between the governor and the tribes? DC Court of Appeals What about the Florida Compact?

The only certainty is that there will be no shortage of news in the year ahead.