In May 2018, the US Supreme Court lifted the ban on sports betting, making it possible for different states to legalize the activity. Since then, 14 states have joined the bandwagon, and the article by Maake (2019) summarizes how different states have been faring. Nevada, for instance, has had the greatest impact, according to Maake (2019). However, the main reason is that sports betting has been legal in the state since 1949, while the federal law banning sports betting was set in 1992. Of the other states, New Jersey has made the best out of the situation, which is not a surprise given that the state championed the legalization of the activity in 2018 (Maake, 2019). New York and Delaware, on the other hand, have implemented a sports betting system that relies on retail sports but is lagging in online betting. However, according to Maake (2019), the biggest disappointment has been DC, whose in-person betting stores were only open in September 2019. Additionally, its online betting platform is expected to open in the first quarter of 2020.
Given the enthusiasm and adoption of legalized sports betting, it is important to understand why this trend is important in the field of sports sales and promotions. First, the trend has opened up new opportunities in sports analytics and data capture. In other words, the demand for prop bets will only increase, which will only increase the revenues from the activities. An example of a prop bet is fans betting on the first player to score a touchdown in the Super Bowl. Additionally, official league statistics and data will become increasingly valuable, creating a niche market where it can be sold at a premium.
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Secondly, the trend is important as it opens up new opportunities for sponsorship deals, especially bookmarking sites. For instance, major leagues, like the NBA, NHL, and NFL, among others, could now be accepting sponsorship deals from betting companies and casinos. Additionally, when over 20 states legalize betting, national advertising will bring in more revenues and promotions. The level of this event could be compared to the number of advertisement budgets during a presidential election year.
Thirdly, sales and promotions will be boosted by the growing demand for sports analysts as well as data collection methods. These two will be strategic resources for the companies to boost fan engagement, which will promote both the betting companies and the teams. In the end, even the users benefit as more job opportunities open up. Given that sports sales jobs are always available in the sports industry, new entrants could use them to built footholds into the industry then focus on sports betting, especially now when there are neither industrial standards nor strict regulations.
There is a downside to this trend, however. As legalized sports betting proliferates further in the industry, corruption will not be left behind. This is because there will be greater opportunities for players and teams to take bribes. In the end, the trend could potentially have a bad impact on sportsmanship. Therefore, while things are catching up, regulatory bodies should start instilling compliance and oversight systems in leagues and teams to keep the whole affair above reproach.
References
Maake, K. (2019). Bizjournals.com. Retrieved 5 August 2020, from https://www.bizjournals.com/washington/news/2019/12/11/its-been-a-year-since-d-c-legalized-sports-betting.html.
