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  • Social Sports Betting in The USA Explained

    Posted in Uncategorized

    The cornerstone of sports betting in the USA has always been about the concept of two parties taking opposite stances on the outcome of a sporting event. One entity believes one outcome will happen, while the other entity believes the opposite outcome will happen.

    Of course, we all know that sports betting in the USA has evolved into much more than that. You can now bet on which team will win a sports league championship, which team will win or lose a certain amount of games, which player will accumulate a certain amount of statistics, and more. And the process of making those wagers has evolved the same, if not with the same complications. Instead of trying to find someone to bet with, we can make wagers through a casino sportsbook (in states where sports betting is legal) or through a bookmaker, aka “a “bookie” (assuming you can find a legitimate one).

    So that begs the question: is the world of sports betting now relegated to individualized interactions with one central hub that collects all bets? Are the days of two people making wagers on the outcome of a sporting event now over? The concept of Social Sports Betting looks to bring about an answer of “no” to both of those questions.

     

    Sports Betting in the USA Is A Social Pastime

    If you require any proof of the idea that sports betting is as much a social endeavor as anything else, look no further than fantasy sports.

    Fantasy sports is easily the most predominant form of gambling on sports in North America. In fact, it’s been estimated that upwards of 59 million people across North America participate in a fantasy sports league. And yet, there’s a large swath of people among that group who would consider themselves a “casual” sports fan at most. So how is it that someone would be willing to wager money — in many cases, upwards of $500 each year — in an endeavor in which they have a (self-professed) casual interest at best?

    Sure, the potential for walking away with the entire “pot” of winnings, and/or earning bragging rights among friends have their appeal. But one can argue the biggest draw of fantasy sports as a whole is that you’re gambling on particular outcomes of sporting events alongside friends, friends-of-friends, acquaintances, and even co-workers. What happens during those contests ends up becoming one of the predominant topics of discussion in social gatherings, text message threads, and around the proverbial water cooler at work, especially since people have both financial and competitive skin(s) in the game.

     

    Sports Betting in the USA

     

    Compare that to your traditional model of betting, which is far more individualized and isolated. You analyze the potential wager you want to make, give your money and your wager to an otherwise indifferent bookie or the sportsbook, and quietly receive your winnings in the situations when your wager turns out to be correct. In other words, whether you win or lose your bet, nobody knows — or cares — outside of yourself.

    And yet, the market for the more “traditional” type(s) of betting remains robust.  It’s with good reason that the Supreme Court’s decision in Murphy v. National Collegiate Athletic Association in May of 2018, in which the court declared the federal ban on sports betting to be unconstitutional, has garnered so much attention. The court’s ruling in favor of making the legalization of sports a state-level decision, more and more states are legalizing sports gambling thanks to the highly lucrative revenue streams it could potentially generate, thereby giving fans who were otherwise tempted to engage in sports betting may have a legal avenue to do so. Entering 2019, the market cap for sports betting was projected to be in excess of $100 billion.

     

    Disrupting The “Status Quo” Of Sports Betting

    At its core, social sports betting in the USA leverages a business model utilized by so many of today’s most popular companies — disrupting the old models of business, and giving a way for consumers to interact with each other, instead of directly with the business itself — to make sports betting a more accessible and enjoyable experience for consumers.

    Many of the most prominent “disruptors” have adopted the idea of utilizing peer-to-peer technologies to remove the “middle man” from the process. Thanks to the proliferation of wireless and mobile technology, we’ve figured out ways to eliminate said “middle man” from things including getting a ride from one place to another, purchasing a variety of financial investments, and even the way we can enjoy fitness classes. So, it’s only natural that extend this concept to sports betting.

    If you’re making a wager against a friend over the outcome of a particular game, it’s a winner-takes-all, zero-sum situation. And yet, we’re forced to pay a fee to a middle man, in the form of the vigorish (commonly referred to as “the vig”) when making a wager with a bookmaker. Why does it have to be this way? As the saying goes: “if you gamble long enough, the house always wins.” So why force yourself to gamble against “the house” in the first place?

    Instead, social sports betting platforms leverage our ability to connect virtually and bring enormous scale to traditional peer-to-peer bets.

    Imagine two totally independent users on such a platform, who have differing opinions — and a willingness to wager based on those opinions — on the outcome of a match between Team A and Team B. The platform can find and match those two people, based on their willingness to wager on opposite sides of that bet, and effectively “pair” those two against each other. Whoever ends up being correct about the outcome of the match wins the bet.

     

    Making Sports Betting Betting A Community Experience

    As the name implies, the foundation of social media is about being able to communicate and exchange ideas — i.e., “socialize” — with people, through an online medium. And if we’re looking for restaurant recommendations, movie reviews, or pro’s and con’s of any other consumer product, one of the first things people will do is “crowdsource” — pose the inquiry on a social media platform, and make a decision based on the input and/or insights received from other people with whom they are connected.

    Not surprisingly, social media platforms and message boards are loaded with people sharing their opinions on the outcomes of sporting events (or people asking for insight on the potential outcome of a particular sporting event). But a majority of those people with whom we’re interacting and receiving input are often little more than “armchair quarterbacks” — offering their opinions and advice without the shared experience of genuinely caring about the outcome of a game (since they’re not wagering on it), and  completely indifferent if their predictions turn out to be correct or incorrect.

    Conversely, social sports betting platforms offer the best of both worlds: the ability to not only compete and make wagers against other people, and socializing with people participating in the same endeavor.  Sports fandom is a communal concept in and of itself, so building a similar community for sports bettors — who care more about the outcome in general, versus the performance of a player or team — also makes sense.

    And because sports betting in the USA is inherently based on competition, social sports betting in the USA also allows room for elements of Gamification: being able to compete with fellow sports betters for supremacy within their own domain.

    Maybe someday, we’ll be able to bet on that, too?

  • Sports Betting How to Secrets Bookies Don’t Want You to Know

    No matter how much money you might be giving them on a semi-regular basis, and no matter how nice they may act when you place a wager, the truth is: your bookie is not your friend.  Just like you’re trying to make a few extra bucks by wagering on the outcome of a particular sporting event, your bookie is trying to make a few (or more) extra bucks by facilitating those wagers you’d like to make. In other words, you’re trying to make a profit, and so are they.  And in the case of the latter and to ensure there profits continue to grow at your expense; here are 10 sports betting how to secrets the bookie doesn’t want you to know.

     

    Sports Betting How to Secret 1:

    You’re Betting Against An Army

    Have you ever wondered how bookies establish the lines and the odds for a given sporting event? We can tell you, with 100% certainty, that it’s far from any arbitrary prediction, and it’s even farther away from the idea that you’re betting against the intelligence of a particular person or group of people in general.

    As you’re undoubtedly aware, sports betting is a billion-dollar business. Sportsbooks literally cannot afford to give bettors any advantage. That’s why they employ some of the best statisticians the country has to offer and charge them with developing rigorous analytical models — using every statistic and variable you could possibly think of, which is then input into state-of-the-art technology for processing — when establishing a given betting line. So if you look at the odds or betting line for a given event and think to yourself: “I know something they don’t know,” you couldn’t be further from the truth.

    Now, all of this is indeed not to deter you from making a bet. Instead, it’s just to set realistic expectations that, when you’re making a bet, you’re betting against an oddsmaker who has at least as much information — or more likely, more information — than you have, so bet accordingly.

    sports betting how to

     

    Sports Betting How to Secret 2:

    Lines Are About Betting Action, Not Score Predictions

    You’ve undoubtedly seen the betting line open up at a particular number for a game, only to shift — sometimes dramatically — in the days leading up to the event. While that could be the result of a star player for a given team suddenly being unable to play, more often than not, the line shifted as a result of a large volume of people betting a certain way, and the bookies wanting to generate bets in the opposite direction. Remember: bookies always want to hedge their losses, so it’s in their best interest to have as many people betting in both directions.

    Let’s use Super Bowl LII (the most recent Super Bowl) as an example. When the betting lines for this game were first established, the New England Patriots were six-point favorites in many sportsbooks. But by the time the game was only hours away from kicking off, the Patriots were down to four-point favorites. That doesn’t mean that the oddsmakers suddenly thought the Patriots would win by only four points, as opposed to the six points in the opening line. Instead, that just meant that there was a ton of action on people placing money on the Philadelphia Eagles, and the oddsmakers thus raised the spread to coax more people to put money on New England, by lowering the number of points the Patriots would have needed to cover.

    But with the benefit of hindsight, we know the six-point, and four-point spreads were essentially meaningless since the Eagles won anyway. What the bookie didn’t want the average bettor to understand is the fact that the betting line changed because most people were putting money on the Eagles to win. As a savvy bettor, those are the things you should be looking for.

     

    Sports Betting How to Secret 3:

    They Don’t Care About Who Wins Or Loses In A Particular Sporting Event

    For bookies, sports is all business. The bookies don’t share the emotion that sports fans invest in the outcome of a game (more on that in a moment). A bookmaker only cares about one thing: the total amount of money bet on a particular event — commonly referred to as “the action” — regardless of what side or outcome that money is being placed upon.

    Accordingly, the average sports fan who wants to dabble in making wagers will look at the given options for bets, and make their wagers based on who they think will win a game. This is a rather “amateurish” strategy. Similar to the bookmakers, the smart bettors don’t look at it from the perspective of who they think will win a game, but rather make bets on the best value given if a particular outcome is reached for a specific event.

     

    Sports Betting How to Secret 4:

    Stop Betting Big When You’re In A Slump

    How many times have you been “in the hole” and told yourself that if you can just hit these next few bets, you can break even and walk away at least somewhat satisfied? If this sounds familiar, you’re certainly not the only person to think this way. And that’s great for bookies because no matter how skilled a bettor you might be, the odds are always with the house.

    In particular, bookies love when people “chase their losses.” That’s when people will lose one bet, and then follow that up by making an even larger bet, to recoup their losses from the first bet, and maybe also try to pick up those winnings that they initially lost out on. So let’s say you wagered $100 on the outcome of a given game, and you lost. Now you’re down $100, instead of being up $200 (in a theoretical 1:1 payout). Betting another $100, to make up for that $100 you lost initially, is already a risky proposition since you could be down $200 if you lose another bet. But the worst thing to do is bet $200, thinking you can make another $200 in return, because if you lose that one, then you’re now down $300.

    There are inevitable ebbs and flows in winnings and losses for a given better, but you have to realize that if you’re in the middle of a slump, your losses begin to compound exponentially, and things can get ugly for you in the blink of an eye. Treat every bet as an individual wager, and every loss as a sunk cost.

     

    Sports Betting How to Secret 5:

    Picking From The Heart Is A Strategy For Suckers

    If you asked bookies about who are their favorite types of bettors, they’re more than likely tell you that it’s those people who make bets on their favorite team, because unless your favorite team is akin to the 1972 Miami Dolphins or the 1996 Chicago Bulls, you’re going to lose as often as you win on average.

    Betting should be about making decisions with your head, and not your heart. But fans who bet on their favorite teams to win are inherently skewed in the opposite direction because they want their team to win so bad that they’ll begin to rationalize why a win is inevitable, and why making a wager on that win is a “can’t-lose” proposition.

    But what bookies really love about these types of fans is the “irrational confidence” these types of fans will have in their teams. If you’re a fan of a winning team, and your team happens to be playing a much-less successful team, it’s not even in your realm of possibility that your team could lose to said the inferior team. These are the types of situations where bettors will make irrational bets — and big ones, at that. And those big wagers can often lead to significant losses.

     

    Sports Betting How to Secret 6:

    Betting On The Favorites Isn’t A Smart Strategy

    The Miracle On Ice. Buster Douglas over Mike Tyson. Villanova over Georgetown in the 1985 NCAA Tournament Final. The 2007 New England Patriots losing in the Super Bowl. The Golden State Warriors blowing a 3-1 lead to the Cleveland Cavaliers in the NBA Finals. As all sports fan know: there’s no such thing as a “sure thing” in sports. Upsets take place all the time. And that’s when the bookies make their killing. Think about how many people make considerable wagers in a given situation, because they believe a certain outcome is inevitable.

    Of course, in the situations where there’s an overwhelming favorite to win a particular sporting event, the sportsbooks adjust their odds accordingly, making it almost worthless to make a wager on the favorite. For instance: when Floyd Mayweather faced Conor McGregor in the much-hyped boxing match, Mayweather was the heavy favorite to win, and anyone making wagers on his victory was getting -400 odds. That effectively meant that they would have to wager $400 to win $100. From a cost-benefit situation, that doesn’t make sense; if you win, you only get $100 extra, but if you lose, you’re now out $400 (even though the risk was very low).

    Bookies always tend to make the odds for the favorites — especially the overwhelming ones — in a way that delivers poor payout. That deters people from simply wagering money on the presumed winner because the upside is too low.

     

    Sports Betting How to Secret 7:

    Bookies Make A Killing On Parlay Bets

    Every time you make a wager, there’s a chance you’ll lose. It logically follows, then, that the more wagers you make, the more chances you’ll have to lose. And that’s precisely why bookies love when bettors make parlay bets.

    For those who don’t know: parlay bets are when you make wagers on multiple events, under the premise that if you correctly wagered on the outcome of those events, you’ll receive a higher return than if you made wagers on those events individually. Of course, the difference is that if you made a parlay bet involving the outcome of two events, you need both of them to result in your favor to receive that higher return; if you had made wagers on each of those two individually, you would still receive some return if you were correct on one bet and incorrect on the other.

    The odds against you compound when you make a parlay bet. Bookies know this, and that’s why they make the potential return of parlays so appealing — to seduce you into making a low-probability wager, under the (mostly false) hope of a big return. So when you ask to make a parlay bet with a bookie, it’s music to their ears, because their odds of making money goes up for every single wager you include in your parlay.

     

    Sports Betting How to Secret 8:

    Timing Is Everything

    Here’s one big secret that bookies don’t want you to know: when you make a wager for a game is almost as important as the wager you’re making overall.

    As we discussed earlier: sportsbooks set the opening lines and odds for a given event, and then adjust both of those based on the direction of the money coming in. Especially in cases where there’s an overwhelming favorite in a sporting event, you could get very tempting — and highly lucrative — odds on the underdog if you make your bet early enough before the line and odds start to even out a bit.

    Morey “Doc” Moseman, a professional gambler and consultant with DocSports.com, said it best: “The sharp bettors tend to bet underdogs, and they tend to bet them early.” Moseman goes on the state that less-experienced bettors tend to make wagers in the days (or hours) leading up to the event itself, and tend to bet on the favorite, even though the lines and odds have shifted to the favorite as well (meaning those bettors are getting a very low potential return on their bet).

     

    Sports Betting How to Secret 9:

    Focus On The Niche Sports If You Want To Win Big Money

    Even though the sportsbooks do have the aforementioned cadre of analysts helping them set the most favorable odds for a given sporting event, there are ways you can still “beat the house.” And one of those ways is to do your homework on more “niche” sports and make your wagers in that niche.

    For the “big four” sports — football, basketball, baseball, and ice hockey — there is more than enough information and betting data available for those statisticians to use in their predictive modeling methods. The same is often true for major boxing matches as well. But the same can’t be said for less popular sports to bet on (like tennis), or newer sports like Mixed Martial Arts (especially in the women’s division). Many times, even the bookmakers will go by conventional thinking as one of their key variables in determining what a given line could be.

    If you really want to find ways to beat the bookie, learning as much as you can about these sports could work to your advantage, especially when you happen to notice a case when the odds are heavily in your favor.

     

    Sports Betting How to Secret 10:

    There’s A Reason Casinos Serve Free Alcohol

    If you’ve learned anything from this list, it was hopefully the fact that you want that you need to operate with a clear mind, when considering and making a wager. Any time of impairment to that clear mind will tilt the odds in further in favor of the house.

    And that’s exactly why casinos will happily provide bettors with all the free alcohol that their heart desires. After all, alcohol impairs people’s judgments and makes people behave in a way that they otherwise wouldn’t when they’re not under the influence of something.

    That’s not to say you can’t enjoy a cocktail or adult beverage of your choice when watching a game. But if you’re considering making any types of wagers, it might be better to make those before you’re under the influence of something else.

  • How the Vig Works in Sports Betting

    How the vig works in sports betting…It’s the classic trap into which nearly every amateur sports bettor falls, and one of the main sources of funding for those large casino’s where people end up going to make their bets.

    Let’s say that, over the course of the season, you keep track of your college or NFL picks against the spread. In a particularly good season, you might come out with a “winning percentage” of somewhere around 60%, or maybe even 65% if you’re having a great season.

    Succumbing to the classic “hot hand fallacy”, thinking that your current “hot streak” will continue if you actually start to put some money on those picks, you convince yourself that, by sheer math, if you place equal amounts of money across 100 bets, assuming 60 or so of them will continue to be successful, you’re still going to make money, since you won 60% of the time, while losing only 40% of the time.

    But the truth of the matter is that the world of sports betting is designed to connive you into precisely that type of thinking. Simply put, if you were to make ten bets of equal amounts, picking ten favorites to win a game, even if your bets resulted in a 50/50 won-loss split, you’d still lose money. This is How the Vig Works in Sports Betting.

     

    How the Vig works in sports betting

     

    How is that possible?

     

    Introducing The Vigorish

    It’s because, as the saying goes: the house always wins. More specifically, it’s because the house uses a built-in commission structure known as “the vigorish” – or “vig,” for short – to ensure that they make money regardless of the actual outcome of a game.

    You might not have heard of the “vig” before, but if you’ve ever placed a sports bet, you’ve almost certainly paid one.  Here is an example of how the Vig works in sports betting  let’s say a particular bet was assigned -110 odds for a given outcome. That means that if you bet $110, you’d only get $100 back; not only are you getting less than 1:1 odds, but you’re also losing money on the bet. That’s how the sportsbook remains profitable; even if a bettor correctly picks the outcome of a game.

    That’s why the original idea of being able to correctly predict the outcome of over 60% of games, and thinking that you could make money this way, is a fallacy. For one, even the savviest sports handicappers end up with a winning percentage of around 55% over the long run, and that’s with managing money, finding value bets, hedging bets, and being glued to full-time research.  So thinking that you’ll be able to beat that is very ambitious — if not foolish thinking.

    But more importantly, recreational sports picks usually assign the same weight to pick the favorite as they do to picking an upset. For instance, if someone hands you a slate of 16 NFL games and their respective point spreads, if you chose the favorites for each one of those games, you’re very likely to end up with more wins than losses, since those teams are favored for a reason. In other words, those picks are made in a vacuum of sorts.

    As mentioned, the vig makes it such that if you were to try and place a bet of $100 on each one of those, even if you were to pick half of the games correctly, you’d still end up losing money, as opposed to breaking even.

    Taking it one step further, let’s say that you made 100 wagers on teams that were given -110 odds. In order to break even, you’d have to pick just over 52% of those games correctly — the break-even rate for that “juice” (a common synonym for the vig) is 52.38%.

    In many cases, games with a vig of -110 are usually ones where there’s as much of a chance that either team wins. If one team is demonstrably better than the other, the vig goes up, and the number of bets you’d have to correctly make on this elevated juice would go up commensurately. For example, if you made 100 bets on teams given -135 odds, you’d have to correctly pick approximately 57.44% of those games correctly to break even.

     

    Deeper Example of the VIG

    Here is a deeper example of how the vig works in sports betting…Simply put, the Vig is the Cut or Fee of the bookmakers.  In other words, it’s their commission, and it’s how the Vig works in sports betting.   Most bookmakers are not focused on whether you win or lose.  They are more focused on keeping their books balanced.  They do this by adjusting the odds whenever necessary so that there are an equal amount of bets on each side.  This allows them to make their Vig and be positive no matter the outcome of the match.

    A fair bet with no fees would be two people betting $100 on a game.  The pot is $200, and the winner takes it all.

    Alternatively, this point spread example explains how it works with a bookmaker:

    49ers              – 4.5 (-110)

    Rams              +4.5 (-110)

    In this example, each player will have to bet $110 to win $100, no matter which team they pick. Winners will get their money back ($110) plus they will win $100.  The pot for two total players will be $220.  The goal of the bookmaker will be to take in the same amount of Rams bets as 49ers bets.  Let’s say the Rams won the game and the bookmaker had taken two Rams bets but did not take any 49ers bets.  In that case, the bookmaker would have to pay the $220 pot back to the winners, along with another $100 to each of them, ultimately losing $200.  However, if the bookmaker can successfully balance their books depending on where the bets are going and take in the same amount of bets for each team, then the bookmaker will always win.  So if they take one Rams bet and one 49ers bet, they would only have to pay $210 to the winner ($110 + 100), thus keeping the extra $10 in their pot as a commission.  Does it make sense How the vig works in sports betting and makes it nearly impossible to make money in sports betting?

     

    Remember: SportsBooks Never Hand Away Free Money

    The vig isn’t merely a tool for the casinos to stay profitable. They’re also an excellent way for them, or online sportsbooks, to recoup some of the money that they offer unsuspecting bettors to open up an account with them.

    As sports betting becomes increasingly legalized across the United States, you’ll start hearing more and more venues offering sports wagering services provide some “matching bonus,” where they’ll do a 1:1 match of any funds deposited (up to a certain amount). For example, if you deposit $250 into a sports betting account with them, they’ll match that $250, giving you $500 to play with.

    While that might sound great, many of these sportsbooks will compensate for those funds given — in case they have to pay them out some day — by bumping up the vig for their bets.

    The vigorish isn’t standardized across all games; it’s whatever the sports book wants it to be. So, you could see the vig being -105 in one place (that might not offer any free benefits to bettors) and then being -115 in another place (where they might offer a deposit bonus that they might need to recoup).

     

    Nobody Said Sports Betting Would Be Easy

    Whether or not you think it’s fair or unfair that you have to pay the sportsbook a surcharge of sorts for a correct pick is irrelevant, because the vig is not going anywhere.

    So, if you’re someone who has serious aspirations of making some coin off of sports betting, you’re going to have to treat it more like work, and less like a recreational hobby. Shop around for the best vig, and use those to hedge your bets made on teams or games with more longshot odds, which will have higher payouts if you win. Your other option is to look for a free sports betting for real money website.  These are far and few, but it removes the risk.

    But at the end of the day that is how the vig works in sports betting and, those cushy hotels in Las Vegas wouldn’t exist if it weren’t for stacking the odds in their favor, regardless of what happens in a sporting event.

  • 7 Reasons why Peer-to-Peer Sports Betting Could be the New Norm

    It’s been estimated that over a minimum of $145 billion is wagered each year on sporting events in the United States, and that’s the number that the American Gambling Association (AGA) is entirely sure about. In fact, the AGA believes that sports wagers made on the “illegal” marketplace — which includes wagers placed in fantasy sports leagues among friends, office betting pools, or any other “peer to peer” betting activity could be more than 5 times that $145 billion number. Find out more on the 7 reasons why peer to peer sports betting could be the new norm.

     

    Reason 1 why Peer-to-Peer Sports Betting Could be the New Norm

    The ruling by the United States Supreme Court in May of 2018, which struck down the federal law banning commercial sports betting, changed the entire sports gaming landscape. Because the court indicated that the federal government could not supersede the rights of states to create their own sports betting laws, it’s now just a matter of time before more and more states legalize sports betting within their own borders (given the fact that it’s a highly lucrative source of income for the state itself).

    But within the context of sports betting, expect to see the rise of “Peer-to-Peer” (P2P) sports betting. P2P sports betting shifts our paradigm of making wagers based on fixed odds and allows bettors to make competitive wagers head to head against each other. It makes plenty of sense, considering it’s the most traditional sense of betting, to begin with.

    But with the forthcoming rise we expect to see in gaming as a whole, combined with the rapid pace of technological innovation we’re sure to see in this endeavor, here are seven reasons why P2P sports betting could very likely become the new norm:

     

    Reason 1 why Peer-to-Peer Sports Betting Could be the New Norm

    Greater Proliferation Of Sports Betting

    From a “socio-economic” perspective, P2P sports betting is going to be a byproduct of the idea that “a rising tide raises all ships.” In other words, because sports betting is going to become more accessible (and less “taboo”), more people are likely to partake in sports wagering of all types; that includes P2P betting as well.

    There’s already an enormous level of participation in P2P sports betting, through things like Daily Fantasy Sports (DFS), which operates on a “winner takes the pot” premise, as well as fantasy sports, which usually operates with people making offline bets amongst friends or colleagues in their league, and the winner getting the pot at the end of the season. With sports betting being legalized, the entire money management system will become more accessible online, just like everything else in today’s world.

     

    Reason 2 why Peer-to-Peer Sports Betting Could be the New Norm

    Generation Z Embraces Peer-to-Peer Everything

    Whether we’re ready or not, “Generation Z” — the demographic of individuals born somewhere between the mid-1990s and mid-2000s — are quickly overtaking millennials as the ground of consumers who will redefine the way we look at business transactions. It’s been estimated that, by 2020, Generation Z will comprise approximately 40% of consumers in the United States.

    But in reality, Generation Z is already redefining the general marketing paradigm, as they’ve shifted focus away from companies and “corporate” brands being seen as the center of subject matter expertise, and instead choose to consume — and trust — content from “real people.”

    That trust also extends to P2P payments. According to a 2017 report from Accenture, approximately two-thirds of “Gen Zs” are interested in making instant P2P payments, and one third indicated they’d be interested in making payments through social media. We already know that services like PayPal and Venmo are heavily utilized by millennials and their younger Generation Z counterparts. P2P betting might not necessarily operate on those payment methods, but it proves that the concept of receiving monetary payments this way is already engrained in the demographic that’s going to be placing the most bets in the coming year.

     

    Reason 3 why Peer-to-Peer Sports Betting Could be the New Norm

    Blockchain Technology is a Peer-To-Peer System

    Most people think of Blockchain technology within the context of cryptocurrencies such as Bitcoin and Ethereum (among others), but the benefits are so much greater than that. Blockchain technology enables the need to validate each person in the transaction and their funds, allowing for a transaction to take place between one or many people without having to deal with a middleman (more on that in a second).

    If you’re still skeptical about whether this is a practical form of payment, the members of your tribe are thinning out. The major banks are already starting to look into how they can integrate blockchain payment into their services; in May of 2018, JP Morgan Chase & Co. filed a patent for their P2P payment system based on blockchain technology.

    Simply put, many believe this is the group that could one day operate without any wallet in their pocket.

     

    Reason 4 why Peer-to-Peer Sports Betting Could be the New Norm

    Fewer Costs For Making Wagers In Peer-To-Peer Betting

    In gambling, we’re taught that if you play long enough, “the house always wins.” But what if “the house” wasn’t involved with the bet in the first place?

    Instead of online casinos being the entity you’re betting against, or the one facilitating the bet, they’re merely going to turn into the conduit for two (or more) people making a wager. P2P sports betting builds on the disruption model that’s been popularized by companies like Uber and AirBnB: instead of paying someone for a service, you’re simply using the service as a way to connect with someone else.

    As more and more companies casinos vie for the bets made by gamblers, by simple economics, any costs that are associated with utilizing their service and/or placing bets are going to reduce. Many believe that the future of online gaming involves these casinos not profiting whatsoever from the P2P bets made, but rather making their revenue like everyone else on the internet: through advertisements, product placements, and trying to “upsell” other goods & services.

     

    Reason 5 why Peer-to-Peer Sports Betting Could be the New Norm

    Eliminating The Middleman

    Many startup companies looking to capitalize on the coming sports betting boom are looking to disrupt the entire gaming industry by giving casinos a run for their money.  Because of their technological background, they’re already well-positioned to facilitate bets using payment forms like cryptocurrency.

    But from a macro standpoint, these startups — or the casinos who can adapt to the new world of online sports betting — are going to benefit from the sheer fact that people don’t have to jump through all sorts of hoops to sign up with offshore betting sites. If you don’t have a bookie with whom you can place bets, with the previous sports betting restrictions, you’re stuck with trying to sign up for an offshore betting site, go through the hassle of hoping your debit or credit card isn’t declined (even though it happens all the time), forcing you to go through another considerable hassle to validate and receive payments.

    When gaming services offer P2P betting, they’ll be able to do so in a way that eliminates so many of the drawbacks and hassles we face when trying to place bets today.

     

    Reason 6 why Peer-to-Peer Sports Betting Could be the New Norm

    Sports Leagues Could Profit From P2P Betting

    The dirty secret — which isn’t much of a “secret” — is that the professional sports leagues couldn’t be more thrilled with the Supreme Courts decision to strike down the federal law(s) against betting. Just like the aforementioned potential state-by-state revenue streams, professional sports leagues are going to heavily invest in ways to make gaming an essential part of the sports viewing experience.

    Because of the efficiency in making bets, and the future patterns of potential bettors making all their wagers through online means, expect sports leagues to pioneer and implement all sorts of ways in which wagers can be made against fellow sports fans, and allowing them to make these wagers at and during the game itself (for a small fee off the top, of course, as a “cost of convenience” for making the wager at their venue).

     

    Reason 7 why Peer-to-Peer Sports Betting Could be the New Norm

    It Will Allow For More Than Just Sports Betting

    At the risk of associating sports gambling with another dangerous vice, P2P sports betting could be a “gateway drug” into P2P betting on a myriad of events outside of sports.

    How many times have we heard the joke (or maybe it wasn’t a joke?) about people setting up an office pool to wager on which one of their co-workers get fired first? Or what about those pools among friends about which particular contestant might win (or lose) a particular reality television show?

    Those people who are already making wagers on sporting events could extend the activity to other areas, and across much larger audiences. You can set up wide-scale betting pools — or just make bets among friends — around things like the outcome of political elections, the winners of a particular movie or music awards show, or even what the weather will be on Christmas morning. And through the P2P wagering avenue of choice, you can manage the entire exchange of funds electronically.

  • The Rise of “Free to Play” Sports Betting

    The popular maxim in the business world is that “there’s no such thing” as a free lunch. But is there such a thing as a free sports bet? In theory, the answer is yes. There are ways you can make actual sports bets without risking a single penny from your bank account and even earn a real cash return for making a correct wager. It just depends on the type of bet you’re making, and the type of sportsbook you’re using in order to make that wager.  Here are three methods contributing to the rise of “free to play” sports betting.

     

    Pick’em Contests

    One of the main ways you can make risk-free wagers is through free play sports betting contests. These contests are effectively a pool of bettors who compete with each other over a period of time, accumulating points based on accurate prognostications. Those can be anything from correctly picking the winner of a game, correctly predicting the outcome of a game in general (moneyline picks), and possibly even predicting the outcome of a game in progress (i.e., picks based on the spread or result of a game that’s already taking place).

    As is the case with wagers made at a sportsbook, in many of these contests, you’ll receive more or fewer points based on the risk-level of the pick (getting more points for correctly picking the underdog or least-likely outcomes). Further, some of these contests allow you to make bets using a fixed amount of imaginary currency or units you’re assigned when you first enter the contest. In other words, you get a certain bankroll when you sign up and based on how you manage said bankroll, you’re able to make larger wagers, and cash in on more points based on correct outcomes.

    At the end of a contest, a certain number of participants will actually win real cash prizes. That number of participants rewarded is usually based on how many people are in the contest, and/or how much money is available to be rewarded. In the case of “risk-free” free play sports betting contests, since the organizer isn’t making money on entry fees, many of these contests are funded by online or brick-and-mortar sportsbooks.

    In some cases, that’s the “catch” with these types of contests. While you do earn a monetary reward for finishing within a certain range, some of these contests reward you in the form of money or credits that you’re only able to redeem at one of the sportsbooks funding the contest. So, if you won $100 in the contest, that $100 would immediately be available for you to use for “real” sports betting. Sure, you could try and immediately withdraw that $100, or whatever money you earned, when the money is made available through the sports books, but the sportsbooks often have rules in terms of when and how withdrawals are eligible to be made.

    In the cases where a sportsbook does not bankroll such contests, you may see platforms where the organizers themselves will be responsible for delivering the prizes. In these instances, the funds that are paid out are usually from the company themselves.  This website, Duelo, has one of the most intriguing models (yes I’m bias).  Thousands of users play free pick’em or parlay contests every day for a chance to win a cash prize.  This is the only site I’ve seen with daily contests, daily cash, and daily winners. Many of the sites out there drag their contests out.  With Duelo, most contests are start and end the same day.

    Lastly, for those who recognize that they’re able to play for free, and simply enjoy making wagers on games for the thrill of it, there are contests which reward players in the form of various prizes, in the place of cash payouts. These prizes could be anything from gift cards to companies who sponsor or partner with the organizer, or maybe just some “swag” – “stuff we all get” – like t-shirts, drink koozies, or things along those lines. These giveaways actually serve two purposes, in that they serve as prizes for the players (who doesn’t love free t-shirts?), but also indirectly market the company itself.

     

    Social Wagering

    Find any group of friends at your local watering hole or any number of sports fans around the water cooler at work, and you’ll frequently hear them discussing which teams they like to win a particular game, or which point spreads are ripe for the taking. But in many instances, these individuals aren’t really motivated enough to place any actual money on the outcome – they just like the idea of being able to identify which teams will win, and by how much, and then debate those picks with their friends and colleagues.

    For that crowd, there are a variety of companies and apps which are offering “social betting” applications. Think of it as a fantasy sports league, but for sports picks. A group of people can get together and form a “league” of sorts on a given platform, or compete against any number of other users on the platform, by making picks on the outcome of games. From there, players are rewarded and ranked based on the number of correct picks they make. In some cases, there are also gamification components to these platforms – players are rewarded for their level of engagement with the platform, including the number of days the login, the number of picks they make, the types of picks made, and so forth.

    For those well-funded companies, the highest performers are sometimes rewarded with prizes we previously mentioned, ranging from cash to gift cards to swag.

     

    Play For Free Promotions

    In some cases, a sportsbook — usually one that’s not well known — will actually offer you a fixed amount of money or bets in exchange for merely trying out their platform. While almost every sportsbook offers some deposit matching promotion, these sportsbooks will hand you a free bet without you having to put any money in upfront.

    For instance, some sportsbooks will give you one free bet up to a fixed amount, which you can use to make a wager on their platform. Of course, the catch is two-fold: most of these sportsbooks require you to have a certain amount accumulated before you can withdraw funds, or they will require you to make some monetary deposit of your own before you can withdraw anything.

    Regardless, a lot of sportsbooks refer to these as “no lose” promotions, because there is literally no risk for you to make an actual and substantive wager on a game – if you lose, no money comes out of your pocket.

     

  • How To Use Bankroll Management Like A Professional Sports Bettor

    If you’re about to make a wager on a sporting event, and if you haven’t thought through the amount of money you’re trying to win versus the amount of money you’re about to lose, then we have some bad news for you: regardless of the outcome of said sporting event, you’ve already lost that wager, and “the House” has already won. Sure, it’s important to be well researched in regards to any game or match you’re betting on. It’s also essential to spot the value picks, based on the listed odds. As we’ve discussed previously when you place your bet can be just as important as what you’re betting on. But the #1 difference between an amateur or recreational sports bettor and the seasoned professional sports bettor is bankroll management. In layman’s terms, bankroll management is just about not betting more than you can afford to lose and maintain a disciplined betting strategy. That might seem rather obvious, but both of those are easier said than done. If everyone stuck by those rules, then your favorite casino would cease to exist.

    Instead, the amateur sports bettor typically makes sporadic and impulsive bets that results in them losing their funds quickly and brutally, while the latter makes calculated and strategic bets that allow them to handle the ebbs and flows that have to do with gambling in general, and keeps them alive to bet another day. All the research, information, and timing in the world won’t matter if you don’t have the money to make a bet in the first place.

     

    What Everyone Needs To Know About Bankroll Management In Sports Betting

    Again, your bankroll is the amount of money you have at your disposal to make sports wagers. Naturally, the amount you can wager is dependent on the amount of money you have in your bankroll. But if you’ve got the money of Warren Buffett and the sports knowledge of your favorite ESPN personality, that doesn’t mean you should start laying down big-money bets.

    First and foremost, any sports handicapper who is looking out for their fellow sports bettor will tell you that gambling on sports should be viewed strictly as leisure or recreational activity, and not as a way to earn a sustainable income. While you might be seduced by the stories of professional gamblers making a living off of watching and betting on sports, the truth is that those individuals are few and far between, and that select handful of individuals who can make their living in such a manner have invested hundreds of hours into developing sophisticated statistical betting models and methods that allow them to do so. Point being, they’re not your typical sports fans who make win a bunch of bets because they’re enormous sports junkies who know everything about every team and every player.

    Regardless of how knowledgeable you consider yourself when it comes to sports, the truth is, even the best sports bettors in the world end up with only the slightest of advantages in the win margin, over the course of all the bets they make. In other words, they’re still losing right around half the bets they make.  Statistically speaking, it’s also likely that a sports better of any skill level will endure a losing streak of varying lengths; even if you flipped a coin ten times in a row, you’re very likely to have a streak of heads or tails coming up multiple times in a row.  Given that, you need to have a firm understanding of your finances available for gambling, in order to sustain a losing streak, and still have the capital to make a few bets that can stem the tide back in your favor.

    That’s why the top professional sports bettors tend to be very conservative in the amount they wager in any given situation. The sportsbooks want you to think that these professional sports handicappers are cashing out on this high-risk, high-reward bets because they want the more typical gamblers to make these types of bets as well (considering they’re going to lose far more often than the win). In reality, it’s the total opposite; the most successful professional sports bettors assess their bankroll and then wager a very small fraction of it in any given situation.

    How much is that “small fraction?” Let’s discuss.

     

    How The Professionals Use Bankroll Management In Sports Betting To Maximize Their Winnings

    While many professional sports bettors usually stick to wagers of no more than 1% of their overall bankroll, most people believe that your maximum bet should never exceed more than 2% of your total bankroll. Put another way: your bankroll should be enough for you to make somewhere between 50 and 100 bets. That way, you can endure prolonged “dry spells” without drying up your bankroll.

    Again, this sounds simple in concept, but everything changes in the real world. If you enter a sportsbook with $1,000 in your bankroll, making bets of no more than $20 might feel too conservative, if not downright boring. But remember: this is the exact trap in which the sportsbook wants to ensnare you.

    A lot of professional sports bettors stick with this standardized bet method when it comes to bankroll management. Regardless of the ups and downs endured by their bankroll, they stick with wagers comprising 1% to 2% of their starting bankroll. However, a few bettors apply dynamic wager principle, which essentially changes their wagers to 1% to 2% of their current bankroll. For example, if they started with $1000, but find themselves $200 in the hole (meaning they now have $800 in their bankroll), then they’ll make wagers between $8 and $16 — equal to 1% to 2% of their current bankroll — as opposed to the $10 to $20 that would be 1% to 2% of their starting bankroll.

    However, there’s a third method that’s very popular, which — at least in theory — allows you to vary the number of your wagers based on the confidence level and odds for a given sporting event. If you’re looking for a true math-based model to incorporate into your sports betting strategy, then the Kelly Criterion might be up your alley.

    The Kelly Criterion is a formula which helps you calculate the optimal amount you should wager in a given situation, based on the odds given, and the probability of success in a given outcome. While the formula can get rather in depth (this website does an excellent job of explaining it in great detail), a simplified version of the formula, which nets you very similar results, is Recommended Wager = ((Odds x Success Rate) – Failure Rate) / Odds.

    While that may look daunting at first, even the most novice sports bettors should be able to plug in the formula into a spreadsheet and obtain the desired calculation. You translate your traditional (American) odds into decimal odds (this website does a great job explaining how to do that), and then determine what you believe to be the success rate for your predicted outcome. For example, if Team X is getting -110 odds to beat Team Y, and you think there’s a 60% chance that Team X will beat Team Y, your equation would look like: ((1.909-1) x 0.6) – 0.4) / 1.909 = 0.0761. That means that, in this scenario, the recommended wager is up to 7.61% of your total bankroll.

    Critics of this equation point to two potential problems. The first one is the more obvious one: the success rate (and failure rate) part of the equation is entirely subjective. While you’d likely remain safe if you just plugged in a 50/50 rate of success and failure, biased or zealous bettors may skew these numbers, which would then skew their suggested wager.

    Second, many people believe that the recommended yield from this equation is still too high. Consider that, in our example, the recommended wager is 7.6%, yet we stated earlier that you shouldn’t wager more than 2% of your bankroll on a given bet. In response to the second issue, some bettors have taken the recommended yield and applied the “half-Kelly” or “quarter-Kelly” principle, which as the name would suggest, means that they take the result of the equation and either divide it by two or four to obtain their optimal wager.

    Regardless of which result you choose to follow, make sure you’re consistent with it: mixing and matching the standard result, half-Kelly result, or quarter-Kelly result is flirting with danger.

    Slow And Steady Bankroll Management Wins The Race

    Like with any other vice, you need to have a measure of control and responsibility when you’re gambling. As tempting as it is to bet big when you’re winning and/or double-down on your bets when you’re losing, as the old saying goes: “slow and steady wins the race.”

    Bankroll management starts with deciding on an amount of money that you’re going to allocate towards gambling, with this amount being a sum that you’re at peace with potentially losing. But even more importantly, it’s about sticking to this number, and not tapping into “reserves” – especially money that would be much better served elsewhere to continue to back your wagers.

    Once you decide how much money you’re going to invest, in a metaphorical sense, you need to think of sports betting more like a stock portfolio, as opposed to a lottery ticket. The fool who puts their money into a bet expecting a quick return will soon be parted with said money. Instead, the savvy investor understands that he or she is making a series of strategic wagers that will have immediate ups and downs, but in the end, will reveal the right opportunities for investments (in the form of bets) that will pay off over the long term.

     

     

     

     

  • Comparing Winning Percentage, Units, and ROI in Sports Betting

    There’s an old saying: “if you fail to plan, you plan to fail.” Like with many other things in life, this adage is 100% applicable when it comes to sports betting. Most amateurs tend to throw arbitrary amounts out for bets, without really understanding how or why they’re making that particular bet. The amount they place is essentially based on a whim, or on their (often irrational) belief that a wager will pan out in their favor. Unless you’re someone who has an unlimited bankroll and enjoys the thrill of betting, the goal of sports betting is obviously to make money.  But you’re not going to accomplish that without having a strategy and plain in place. And three of the fundamental concepts of any such plan includes understanding your winning percentage (and gauging wagers accordingly), the units to be gained (and lost) from each potential wager, and the overall amount of money you stand to gain or lose — both in the short-term and the long-term — from all your bets. While that might seem complicated, don’t worry; we’re not here to take the fun out of sports betting. Instead, we’re here to help you become a better one.

    Here’s how you can do that…

    Winning Percentage In Sports Betting

    Let’s face it: in our heads, we’re all sports gurus. We believe we have the expertise to predict which teams will win and which players will perform best correctly, more often than not. However, the cold, hard numbers say otherwise.

    The best handicappers in the world average somewhere between 54% to 57% over the long-term. In fact, the Wall Street Journal once wrote that “fewer than 100 people can sustain (win rates of 55%) over time. Most of them belong to professional betting syndicates that hire teams of statisticians, wager millions every week and keep their operations secret.” Amateur bettors might scoff at such an idea, thinking that percentage is way too low, but they fail to understand the increasing level of sophistication employed by sportsbooks and oddsmakers in determining each wager and odds.

    Here’s the staggering truth: it’s been estimated that the average sports handicapper who hits around 50% of his games has less than a one in a trillion chance of hitting 70% of his games over the course of 1,000 plays.

    All of this isn’t to scare you away from making wagers. Rather, it’s to establish a baseline understanding of what’s realistic, in terms of your win-loss ratio. All things being equal, you want to try and win a few more bets than you lose, but the operative word(s) in that statement is “a few.” Anything over 53% is considered outstanding, and anything over 55% is the equivalent of when we say a player is “on fire” in a game.

    But, there are still ways for you to somehow be losing money, even if you’re winning just over 50% of your wagers. How is that possible? It’s because all bets aren’t created equal. That’s why what you bet, and how you bet, is often just as important on whether your wager was correct.

    Units Of Sports Betting

    Explained simply, a “unit” is essentially the number of bets you’re able (and willing) to make, based on your bankroll.  While you might ask yourself why someone wouldn’t just track each bet based on the amount wagered, translating these bets into units allows you to better understand where to wager your money and keep track of your earnings and losses equally.

    Units provide a standardized way for betters to compare and explain winnings, without introducing the bias of having a larger or smaller bankroll. “Who has more money” isn’t nearly as important as “who won more money,” when all things are equal; that equality is what units provide. Most people will tell you to split your bankroll up into units comprising somewhere between 1% to 3% of your bankroll, depending on how much you’re starting with. So, if you have a bankroll of $1,000, you can split that up into units of $10. However, if your bankroll is $100, you might consider breaking up your wagers into slightly higher units, since breaking it up into units of 1% (i.e., $1.00) might get a bit too cumbersome and not worth it to track.

    Here’s how it’s applied in the real world of sports betting. Let’s say there’s a sporting event in which the favorite is given -115 odds to win. To calculate the betting you units would win on -115 odds (note: odds are commonly referred to as “juice” in gambling parlance), you can use one of the following two formulas (shown below), with “X” being the juice (odds):

    * When X > 0, use X/100

    * When X < 0, use -100/X

    So in our hypothetical event, since the odds are -115, the equation would be -100/-115, which equals 0.8696. That means you win approximately 0.87 units if you wager correctly, but lose one unit (-1) for an unsuccessful wager.  This helps us better understand how it’s possible to win as many bets as you lose, and somehow end up losing money — because an incorrect wager loses more money than a correct wager would earn you.

    Return On Investment (ROI)

    The return on investment (ROI) is one of the most fundamental concepts in any form of business or money-making venture.  It’s defined as the amount of profit you’ll obtain based on your initial investment. Or, put another way, it’s a quantifiable way to determine whether or not a particular investment or, in our case, a particular wager is worth making, based on the projected amount of return.

    The traditional ROI equation, translated in terms of betting, is ROI = (Gain from Wager – Cost of Wager) / Cost of Wager; the number is then translated into a percentage. As an example, if you’re making a $100 bet that will pay out $110, then your ROI will be (110-100)/100, which would be 0.10 or 10%.

    In the long run, ROI also measures the percentage your bankroll had increased (or decreased) from when you first started. That’s why many sports betters believe that ROI is the most accurate measure of your sports betting success since it tells you whether or not your investment strategy is working as a whole. Sports betting employs similar strategies to any other type of risk-based investing. Winning percentage and units won might be better short-term indicators of performance, but your overall ROI — especially when tracked over time — will tell you whether you’re sustaining a profit over the long term, and the extent of that profit.

    Comparing Winning Percentage, Units, and ROI In Sports Betting (Conclusion)

    While winning percentage and units won are more commonly examined by bettors measuring their success, the most basic way to measure success on a given wager or a series of wagers is examining your return on investment.

    It’s better to measure your ROI versus your winning percentage because a person who wins 60% of low-risk (with low-return) wagers isn’t making as much money as someone who wins 55% of wagers with a slightly higher risk-return profile. There are many people who will tell you that win-loss records, or winning percentage in general, are only important in regards to the competitors or teams that are playing (or whom you’re wagering upon).

    Here’s another way to examine the ROI versus Winning Percentage debate. Let’s say that you make a wager on ten events where the underdog is being given +200 odds and ten additional events where the favorite is being given -200 odds. For the sake of argument, let’s say that over those ten events, the underdog wins 40% of the time, and the favorite wins 70% of the time. If you invested $1,000 equally spread out over ten bets on the favorite(s), your profit would be $450, meaning you’ll have an ROI of 45% on a bet that won 70% of the time. However, if you invested $1,000 equally spread out over ten bets on the underdog(s), your payout would be $600, meaning your ROI would be 60% on a bet that won 40% of the time.

    So, in terms of importance, you want to think of winning percentage, units, and ROI as three layers of a pyramid; the larger the layer, the more important it is to you as a gambler. In that visualization, your ROI is the bottom layer, your units would be the middle layer, and your winning percentage would be the top portion of this (hypothetical) pyramid.

     

  • The Current State of Sports Betting in the U.S.

    While the sports betting floodgates have swung wide open, the dust has yet to settle. Since the Supreme Court ruling in May 2018 reversing the 1992 Professional and Amateur Sports Protection Act (PASPA) that prevented states from permitting sports gambling, serious movement on the issue has occurred on both the state, federal, and business level as a result. The ruling determined that PASPA was unconstitutional considering it impeded on rights of the states under the 10th amendment. Following New Jersey’s Supreme Court challenge and victory, any state in the United States now can legalize sports betting.

    Many states didn’t waste any time and moved quickly to allow sports betting. Most others have introduced bills to authorize sports wagering in some capacity. Only a small minority of states have not introduced any legislation at all. Below is a state-by-state list of where each state stands on this issue, including the District of Columbia. At the same time, entrepreneurs have acted quickly to capitalize on this accelerating and flourishing industry. With all these wheels in motion, the federal government is still interested and has taken steps to establish control over state-regulated sports wagering.

    The U.S. government continues to seek control of sports betting on a federal level
    In what many consider a case of sour grapes, Sen. Orrin Hatch, one of the original authors of PASPA, is behind a bill that would implement federal uniform standards and oversight over the legalized sports betting landscape. Hatch claims the intention is to ensure that sports betting is done properly in states that decide to legalize it.

    One of the mandates of this bill would require states to obtain approval from the federal government to pass their own sports betting laws. Another stipulation proposes that betting establishments utilize data provided by the leagues or licensed providers to decide the outcomes of sports bets. There’s also a federal tax added to the mix in addition to the state sports betting taxes. For this governance, two new federal organizations would be created: The National Sports Wagering Commission and National Sports Wagering Clearinghouse.

    There are still opponents of sports betting in the House and Senate, however, whether this bill makes it to the law is to be seen. Until this ever comes to fruition, states can authorize and pass their own sports betting laws as they see fit. Adding another layer of bureaucracy which already seems to be heavily regulated at the state level is not something the industry is in favor of.

    Sports betting businesses look to capitalize on potential revenue windfalls

    The lift on sports betting ban has unlocked the reigns for entrepreneurs in this sector. The same way various states mobilized quickly to legalize sports gambling, entrepreneurs moved just as fast with the opportunity to establish market share and potential to generate serious revenue. Some entities such as DraftKings and FanDuel have spent years positioning themselves in preparation for sports betting legalization years before it actually happened. The daily fantasy sports operators have laid the groundwork in anticipation of legalization and have quickly moved to dominate the mobile sports betting arena.

    However, the current legal framework has created frustrating entanglements for the new operators who view it as the cost of doing business in an industry that’s been controlled by old fashioned brick and mortar casinos. For example, to be able to conduct a sports betting business in New Jersey, the law mandates that the companies need to partner with casino operators who have an existing license. Running licenses through the casinos appears to be a huge discontent for the mobile betting operators, though they’ve clearly been playing by the rules as DraftKings has licensed through Atlantic City’s Resorts Casino Hotel and FanDuel with the Meadowlands Racetrack and Casino. With mobile betting becoming the method of choice for sports gamblers and the future of this industry, it’s a ludicrous arrangement the casino operators wish to keep intact to allow them a piece of the pie without having to create their own outlet for mobile sports betting. It’s simple, why would anyone want the hassle and inconvenience of driving to an actual casino when they can place wagers via their mobile phones in the comfort of their homes. Casinos prefer customers to visit their establishments physically.

    But there are signs that casino operators may be losing their grip. In Massachusetts, a sports betting law proposal in the works would allow mobile operators to receive direct licensing without needing it to run through a casino. The groundwork for direct licensing is being established.

     

    States that have a legal and regulated sports betting industry

    As a result of the Supreme Courts reversal of the sports betting ban, ten additional states join Nevada with Delaware becoming the first new state to allow it under the expanded market. While each state is different, they all allow sports betting in some form whether it’s through casino operations, tribes, or digital.

    – Nevada
    The true veteran of the industry allowing legal sports gambling in the state since 1949, Nevada was grandfathered in once PASPA was put into effect in 1992. The Supreme Court ruling means that Nevada loses its sports betting exclusivity and monopoly, now having competition from other states that pass regulations to allow it.

    – Delaware
    The first to act following the Supreme Court’s reversal of PASPA, Delaware was one of five states exempted from it, limited to NFL game parlay bets. Less than a month after the ruling, it quickly assembled regulations and began taking single-game betting in casinos on June 5, 2018. Sports gambling could also take place online and at other locations besides casinos.

    – New Jersey
    Like Delaware, New Jersey moved quickly to allow sports betting, officially started taking wagers on June 14, 2018. The William Hill sportsbook at Monmouth Park took the first bets, while others quickly followed. Daily fantasy platforms expanded into the sportsbook business with FanDuel opening their first sportsbook location at the Meadowlands in July with DraftKings immediately following in a venture with Resorts Casino, taking the first online bet outside of Nevada through a mobile betting app on Aug 1, while opening up their on-property location two weeks later. The state now features over ten online sportsbooks. Users must physically be located in the state of New Jersey in order to place a bet via online or app.

    – Mississippi
    Mississippi passed sports betting legislation before the Supreme Courts ban reversal, officially launching operations on the same day New Jersey began taking mobile bets. State regulations require that bets are made in person and now features over 20 operational sportsbooks, also allowing mobile wagering onsite only. Statewide mobile wagering is not permitted. Mississippi features DraftKings’ first physical sportsbook and marks their first sports betting initiative outside New Jersey. The state is also the first besides Nevada to allow sports betting at tribal casinos.

    – West Virginia
    The fifth state to allow sports betting began offering betting licenses in August of 2018, officially taking their first bet on the 30th at the Hollywood Casino. Regulation permits both in-person and online sports betting. The FanDuel Sportsbook at the Casino Club launched less than two weeks later followed by William Hill Sports Book at the Mountaineer Casino, Racetrack & Resort in November.

    – New Mexico
    While the state has not passed legalized sports betting legislation, the Santa Ana Casino and Hotel became the first tribal based casino in the U.S. to begin taking bets inside a state that doesn’t allow it. Through a compact with the state allowing all forms of Class III gambling, sports betting officially launched on October 16. A second New Mexico tribal casino has followed suit, opening a sportsbook at Buffalo Thunder Resort Casino on the Pojoaque Pueblo.

    – Pennsylvania
    Pennsylvania was another state to approve sports betting legislation ahead of the Supreme Court’s ban reversal, officially becoming effective with the overturn. Sportsbook operations kicked off at Hollywood Casino at Penn National Race Course in November 2018 with two more casinos following suit in December, allowing in-person onsite betting. Online sports betting is expected to launch later in 2019 with FanDuel, DraftKings, Parx, and SugarHouse all expected to operate digitally.

    – Rhode Island
    Rhode Island sports betting officially kicked off November 26, 2018, at the Twins River Casino, five months after Governor Gina Raimondo included legal sports betting stipulations into its state budget. The state law currently does not allow for mobile betting.

    – Montana
    As part of the five states exempted from PASPA, Montana allows sports pools. And on May 3, 2019, Montana became the first State this year to legalize Sports Betting by passing H725 (after Governor Bullock vetoed SB330). Montana has now passed legislation but has yet to launch.

    – Indiana
    Governor Eric Holcomb signed Bill H1015 into law on May 8, 2019 and became the second State this year to legalize Sports Betting (after Montana). The bill allows for statewide mobile wagering. Indiana has passed the bill but has yet to launch.

    – Iowa
    On May 13, 2019, Iowa Governor Kim Reynolds signed a Sports Betting and Fantasy Sports bill into law. The bill allows bets through apps like Duelo, DraftKings, and FanDuel who offer fantasy sports gaming. Iowa has yet to launch.

     

    States moving towards sports betting legalization

    These states have introduced legislation to allow some form of sports gambling in their state.

    – Alabama
    House Bill 315 introduced in April 2019 would allow for betting via mobile, online, and in brick-and-mortar locations. It calls for the creation of a state oversight commission to make the rules and issue licenses to sports betting operators.

    – Arizona
    Arizona introduced bill SB 1163 in January 2019 in a move to allow legalized sports betting with exclusivity to the state’s federally recognized Indian tribes with a gaming compact. Sports betting would be prohibited otherwise.

    – Arkansas
    With voters passing legalized sports betting on November 6, 2018, Arkansas will soon be moving to the list above. Applications for sports betting operators will begin being accepted in June 2019.

    – California
    A constitutional amendment was introduced in 2017 to allow sports wagering only upon a change in federal law, which happened. However, it faces an uphill battle if previous online poker bill introductions are any indication.

    – Connecticut
    A formal bill to allow comprehensive sports betting was introduced in 2018, resulting in no formal vote on it. A new bill HB 7731 was introduced early in 2019 focusing on allowing sports betting on mobile and through tribal casinos.

    – Georgia
    Legislation HR 380 initiates an amendment to the constitution through ballot referendum for sports betting legalization in Georgia.

    – Illinois
    Legislation was introduced in 2018 with amendments added in March 2019 providing four options on how to regulate it.

    – Hawaii
    Introduced House Bill 1104 authorizing a regulatory set up for sports gambling that would require oversight by a newly created Hawaii Sports Wagering Corporation.

    – Kansas
    A new sports betting bill was introduced in January 2019 with multiple entities including sports leagues discussing ways to regulate it.

    – Kentucky
    Bill HB 175 was introduced in Feb 2019 that would allow for sports betting at either the Kentucky Speedway or one of the state’s horse racing tracks. Mobile betting would be allowed requiring users to download the app at one of those locations.

    – Louisiana
    Voting will take place in October 2019 after SB 153 was introduced to allow for Riverboat, Track, or Land-Based Casino sports betting. If approved operators could begin applying for permits in January of 2020.

    – Maine
    Seven sports betting legislative bills were introduced in January 2019.

    – Maryland
    A ballot referendum may potentially be voted on in 2020. However, state legislators are exploring a workaround that wouldn’t require a referendum through the state lottery.

    – Massachusetts
    One of the first to take on daily fantasy sports legalization is taking steps towards sports betting as well. Most recently, several new bills were introduced in January 2019 including a bill that would not require operators to license through a brick-and-mortar casino.

    – Michigan
    Legislation HB 4926 to develop a regulatory sports betting system was approved in 2018; however, it was vetoed by the state governor.

    – Minnesota
    A bill introduced in February 2019 would grant licenses to Indian tribes within the state, with mobile wagering requiring the device to be within the confines of the brick-and-mortar locations.

    – Missouri
    Bills introduced in 2018 did not advance. However, new sports betting bills were submitted in January 2019.

    – New Hampshire
    Bill 480, introduced in January 2019 to kick off in 2020, pushes for the establishment of a sports betting system within the lottery commission, features stipulation preventing college sports betting.

    – New York
    New Yorkers voted to expand casino gambling operations to sports betting in 2013 for four upstate casinos with nothing ever coming to fruition. New Bill 6113 was introduced in 2019 and also includes mobile and online betting.

    – North Dakota
    After initially voting down the bill, North Dakota House of Representatives passed sports betting legislation HB 1252, authorizing sports betting as a game of chance. It’s now with the state Senate for approval.

    – Ohio
    Introduced in March 2019, SB 111 would allow sports betting under license with ability to operate online as well as within brick-and-mortar locations.

    – Oklahoma
    A 2018 bill to legalize sports betting as part of an expansion to the tribal gaming compact received no action upon session closing.

    – Oregon
    Oregon was one of five states exempted from PASPA, limited to lottery pools. HB 2288 was introduced in Jan 2019 to create regulations on how to distribute net proceeds from sports betting. Mobile betting would be part of the rollout.

    – North Carolina
    Current house (HB 302) and Senate (SB 154) bills would legalize sports betting, though restricted to tribal casinos.

    – South Carolina
    A joint bill, SB 57 and HB 3404, was introduced in January 2019 to bring amendment of state constitution to allow sports gambling up for a ballot referendum.

    – South Dakota
    Over 25 lawmakers submitted a joint resolution to include sports betting on the ballot for 2020.

    – Tennessee
    Various motions have been introduced in 2019 including HB 1 which includes mobile wagering.

    – Texas
    Regulations bill, HB 1275, authorizing mobile and online sports betting was submitted in February 2019 requiring operators to attain a permit and pay a fee.

    – Virginia
    SB 1126 allowing Lottery Board oversight of sports betting was officially signed into law on March 2019. Locations would be limited and betting on Virginia-based colleges would be prohibitive.

    – Washington D.C.
    Sports Wagering Lottery Amendment Act of 2018 was signed into law on January 23, 2019, and expected to roll out sometime in the summer. Sports betting will begin with brick-and-mortar venues such as Capitol One Arena whom announced a sportsbook inside the arena. Mobile wagering will not be part of this initial launch; next year is more likely.

    – Washington State
    Two sports betting bills were introduced in February 2019. HB 1975 limits sports betting to tribal casinos while HB 1992 would only permit betting onsite at licensed horse race tracks. Neither allows for statewide mobile wagering. However, HB 1975 would only allow it within the tribal casinos.

     

    States that have not taken any action towards sports betting legalization

    This list of states prohibit sports betting and do not have any current bills aimed at legalizing sports betting.

    – Alaska
    – Colorado
    – Florida
    – Idaho
    – Nebraska
    – Utah
    – Vermont
    – Wisconsin
    – Wyoming

    In less than a year since the supreme court’s ruling, as outlined above, most states have moved quickly on this issue. With so many moving parts and legislation throughout the country, this list will look very different a year from, with more states allowing sports betting.