Our friends at SBC, while working with VIXIO Gambling Compliance, have uncovered some interesting findings about US sports betting. It seems that executives in the gambling industry, as well as regulators and even legal advisors, feel that the activity could be regulated in as many as 45 states by the year 2025.
These numbers are derived from a survey conducted by the company prior to the SBC Summit North America in December 2021. They asked nearly 150 top executives involved with sports betting in America about their beliefs on the continued growth of the market.
However, there were some serious concerns about things that could also stifle the growth of the US sports betting market. Among those, over 20% of those in the poll stated that high tax rates were a real threat, and nearly 30% used New York’s high taxes as an example of the most concerning issue.
There were worries related to New York’s exorbitant regulation of mobile sports betting. In particular, that 51% tax rate. Could this model actually motivate other states to adopt such a high tax? And if so, what consequences could such a model bring, in addition to operator withdrawals?
Also of concern was the rapid expansion of sports betting advertisements. A full 65% of those surveyed stated that a public response to so many gambling commercials and sponsorships could bring public backlash, leading to large scale political involvement and stricter regulation.
US sports betting could be following the exact same path that we’ve seen over the past 20 years in the United Kingdom and Europe, only at an accelerated pace. If so, then we best buckle up. It’s about to get bumpy.