Understanding the Sports Gambling Industry in the United States
The sports gambling industry is estimated to be worth about US $ sidelight billion annually. Sports gambling is the act of placing a wager on the result and predicting sports outcomes. The practice of placing sports bets has been observed throughout history and is one of the most popular hobbies in many countries. Most sports bet upon is placed on sporting events. Gambling, in its purest form can be done only while the event is taking place; such activity is called sports gambling.
The legal sports gambling industry is dominated by the Ladbrokes group which is a British based company. The market size of the legal sports gambling industry is approximately twenty-six percent of the world’s total gambling market. The size of the illegal sports gambling market is approximately eight percent of the world’s total gambling market. Approximately 8.5 billion dollars a year is spent by people across the world in gambling. There are an estimated five hundred or so illegal sports gambling markets operating in different countries across the globe.
The size of the legal sports gambling industry and the illegal sports gambling industry can be compared on the basis of the market size of the overall industry. Gambling is a very large business in the UK and there are many sportsbooks throughout the UK. There are approximately fourteen thousand sportsbooks throughout the UK at present. The amount of punters that visit the UK each year to take part in the betting game is approximately two hundred and forty million pounds. This represents an investment of nearly three thousand billion pounds per annum.
If you multiply this amount by fourteen thousand pounds per annum, you will get the amount of money that is generated by legal sports gambling per year. In order to put a realistic number on how much profit can be made from legal sports gambling, it is necessary to include the amount of income that is generated from outside the UK. This will amount to another billion pounds.
Over the past few years the United States has successfully legalized sports gambling. At present the states of Delaware, Nevada, and New Jersey have legalized sports gambling. In the past several years the US government as well as different statehouses throughout the US has been attempting to encourage gambling across state lines. Although this is not fully implemented in the United States at present, it is becoming a more popular idea as time progresses.
In order to put a cap on the illegal sports gambling market it is important for the US government to eliminate the tax credit given to illegal sports gambling. This tax credit allows an individual to claim a tax refund every time they gamble over a certain amount. This means that if you are able to prove that you visited a licensed sportsbook and spent money on a bet then you will be eligible for the refund. By eliminating this tax credit the revenue that the US government receives from the people who visit illegal sportsbooks can be protected.
There is currently very little money available in the current market size for the US sportsbooks to function due to the large number of people that visit them on a daily basis. The small amount of money that is made by the sportsbooks is extremely insignificant when compared to the revenue that they could generate if they were to expand their operations. Most US sportsbooks would need to be online in order to be profitable. By having an online sportsbook the amount of people that would be able to make use of their services would increase dramatically. It is possible for a sportsbook to operate with fewer employees if they were to take advantage of the free advertising that is now available via the internet.
As previously stated there are currently about twelve million Americans that gambling on sports. These numbers do not account for the individuals that visit sportsbooks every day. As the US sports betting industry continues to grow so too will the number of individuals that will start gambling online. In only a few more years America will have a very large number of people that gamble on sports, but until then the small US sportsbooks must continue to operate at a loss in order to keep the business alive.