America may legalize sports betting
A decision by the Supreme Court that says that expanding sports betting beyond Nevada would mean billions in this new industry of online gambling. This court has ruled in favor of New Jersey 1992 federal law that prohibited this type of betting in many states. At this moment, Nevada is the only state where wagering isn’t illegal. With this new decision, other states can have the opportunity to be a part of it.
David Katz, analyst, said that “high foot traffic during major sporting events could encourage traditional gambling”. He estimated that this industry could add 2.9$billion to its annual profit. MGM stated that this decision it’s applauded, adding that “it’s extremely well positioned”. Boyd Gaming, which has casino throughout the country, said that it’s an “excellent position to become a leading player in the growth and expansion of sports betting across the country.”
The casinos throughout America are the ones which would gain the most with this change, which is something normal since by becoming totally legal, they would be able to operate freely. However, there’s still a lot do before the court’s ruling becomes into profits for the casinos. Harry Curtis, an analyst at Instinet said that “we are in the top of the first inning.” He also said that there are many questions that haven’t had an answer.” One of the questions, that’s very important, is how long it will take for sports betting to be legal.
Even if America acts quickly, online casinos might not make a lot through sports betting. Katz has noted that those casinos which haven’t a lot of experience with sports gambling are able to outsource these to companies such as the highly known IGT and SGMS (Scientific Games Corporation). The margins from sports betting are extremely narrow at a casino. Many others companies stand to gain from the court’s decision, which is very important to them.
Shares of International Game Technology increased 4% and Scientific Games also had a high peak of about 12%. And fantasy sports platforms like DraftKings and FanDuel haven’t an opportunity to enter the industry of online gambling, where you can play free slot games with bonus rounds no download no registration and many other games without ever paying, which is incredible.
FanDuel stated that this decision will let it “create a sports betting product that fans will love”. DraftKing said that they will enter the market of sports betting.