The Future of Sports Betting

My first freelance piece written for USA Today/Gannett.

USA TODAY

Doyal D'angelo & USA Today

6/3/202313 min read

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Before the surfacing of federally legalized sports wagering, the only way to bet on sports was in-person through licensed casinos in Nevada. Nevada was “grandfathered” in because it was already providing sports gambling services to the public before congress signed the Professional and Amateur Sports Protection Act of 1992, which effectively banned sports gambling on a federal level. Although Montana, Delaware and Oregon were also grandfathered in with Nevada, they couldn’t provide sports gambling services for long, as it was an insignificant service to the public.

Many people can’t even think about making a sports wager because it isn’t legal in their state, which is obviously a gigantic hurdle to the advancement of the industry. In May 2018, the Supreme Court finally struck down PASPA, which ultimately legalized sports gambling in every state. Since then, it has been delegated to the states to decide if it wants sports gambling to be legal. 35 out of the 50 US states have approved it in some form, but the legalities can be complex because some states only allow sports gambling in-person at a federally recognized tribal casino, while other states allow online gambling in addition. As there are only certain states where it is both legal in-person and online, it is imperative that potential gamblers know what is allowed based on their location.

Sports gambling hasn’t and will not grow without some ideological opposition, but that isn’t to say that we won’t see unified legalization in the future. We just know that it will take time and there is no concrete timetable. Legalization is largely dependent on politics – in states like Alabama, Georgia, Idaho, Kentucky and Texas, the issue simply revolves around gambling opposition from political figures in the US House of Representatives and Senate. In other states like California, Minnesota and Oklahoma, there are disagreements between the Native American tribes and governments about compensation and control over the gaming market. In states like Alabama, Alaska, Hawaii, and Utah, there is either no effort to consider legalized sports betting or there aren’t many resources to support a worthy gaming market. In essence, the main hurdle to the expansion of sports gambling is accessibility. A completely mobilized gaming enterprise is possible, but it’s unclear if that will happen. Although, if most state governments can find a way to legalize sports gaming, it doesn’t necessarily matter. You don’t need every state to legalize it before the industry takes off, which is evident in today’s climate.

Part of the increased popularity is the expansion beyond traditional bets. It is easier than ever to try out different aspects of sports betting because there are so many options – Sportsbooks have gone from normal single-game bets (moneyline, spread and over/under) to an almost unfathomable amount of options: like how long the national anthem will be, if a certain player will grab five or more rebounds, whether a team will block a field goal, and even something like if Draymond Green will get another technical foul. It’s called ‘micro-betting’ and the possibilities can be endless depending on the sportsbook.

If you’re authorized, you can gamble from anywhere with your mobile device, and live betting has grown tremendously because of it.

Placing a bet before games had been the most common way to get involved in the past, but an increasingly popular alternative nowadays is to live bet. Live betting only takes place when a game is in session but the opportunities to lock in a bet can dramatically vary depending on how much time is left in a match, how close the score is, and what in-game scenarios look like. For example, you could be watching a basketball game that has eight minutes left with a tied score and want to place a bet that Team Tiger will win. Usually, the lines will be more favorable in this situation because the game is close. This would be a great opportunity for someone to join the action on a game that maybe didn’t have the best odds beforehand. Since live odds typically have a higher level of variation, it could be easier to find the bet that you like at the right time. Having said that, if one team in this scenario scores a three pointer and jumps ahead, the lines usually disappear and come back at a different number. This all can happen abruptly, even if you’re in the middle of placing a bet. You must be quick and decisive when doing this or you will probably miss opportunities. This part of sports wagering seems fresh and maybe more difficult, but it’s also more interactive, which is where in the future sports betting could realize the most growth. Getting people more engaged in the process of a game only serves to benefit media and sportsbooks.

States that partially allow sports gambling obviously have room to expand (especially online) if they want to get more people involved. Of course, some states just need to decide that they want sports gambling to happen in the first place. This would naturally lead to more advertisement dollars spent on the industry, a larger emphasis on integration by major media corporations, and more investment from sportsbooks and their business partners. We’re already seeing this now.

Many people gamble in-person which is traditional, but let’s face it, the future is digital. Live sports betting is only done digitally. This might go without saying but each generation of kids will grow up more embedded with technology, which means that we will see a continuation of what we are experiencing now - the digitalization of many everyday processes like shopping for food and clothes, searching for a new home or apartment, finding valuable information, and pretty much everything we could want or need. Gambling is already becoming a part of this; the key here is convenience - quick and accessible stimulation.

Despite the growth of live online betting, there are still states that won’t allow online sports wagering including Delaware, Mississippi, Montana, New Mexico, North Carolina, Dakota, Washington, and Wisconsin. Many of those states prohibit sports wagering unless you are in an established and federally recognized tribal casino.

In states where sports wagering is completely legal, someone can decide to go to a traditional casino or they can opt for more modern avenues of sports gambling, which would be placing bets through apps like FanDuel, MGMBet, and DraftKings. These apps are partially responsible for the growing gamification of sports betting, which focuses on more unorthodox methods of play like fantasy sports. For some, the preferred method of gambling is with others they have established rapport with, and fantasy leagues allow this to happen. If you’re not familiar with fantasy sports - Groups can get together and decide on a buy-in price for a fantasy league. Every player in this game gets to draft and manage a set of players as if they were the general manager and head coach of a team. The player that has the highest scoring team will win the league via head-to-head matchups. Whoever wins the league usually gets the entire pot, or at least most of it. Further blending entertainment and gaming is the future that we can expect. Interactive casino games and tournaments (like Fantasy) are more likely to keep people engaged because participants might feel that they have more control over the result. This isn’t to say that games based on large amounts of luck won’t continue to excel, sports wagering is inherently a mix of skill and luck, but blending traditional and new-age sports wagering only serves to increase engagement among current and future gamblers. If you haven’t picked up on the theme here, it’s all about increased engagement through a variety of interactions. Sportsbooks and media want consumers to stay invested and of course that requires prior investment from them to begin with.

A growing sports gambling market brings about new opportunities. Media companies, casinos, online sportsbooks, and advertisers all have different ways to get involved and it can be highly profitable. We’re witnessing an integration phase - Media companies have tailored television programs, segments, apps, and website pages that focus on gambling. Since 2018, advertisement time for sportsbooks has increased tremendously. Media companies are now being used to advertise and direct engaged viewers to certain sportsbooks and gambling platforms, usually through a special promotion or embedded as an in-game advertisement. Some publications like Sports Illustrated are taking it a step further, the magazine recently licensed their brand to 888 Holdings to create a sportsbook under the SI name, and they aren’t the only media brand doing this. Barstool Sports sold all its shares to Penn Entertainment, which is a casino and racetrack operator. That deal allowed for integration of the Barstool Sportsbook app. Media businesses are following the money trail - Bleacher Report and Turner Sports are currently in deals to use DraftKings’ fantasy and betting content exclusively on their platforms, ESPN uses DraftKings and Caesar’s sportsbook for betting information, CBS Sports has William Hill, NBC Sports has PointsBet, and FOX Sports has Flutter for gambling information and integration.

Both media and gaming companies can benefit because gambling entities expect an increase in exposure for their brands and services, while the media gets to expand on current content by incorporating gambling shows, segments, and topics that can bring new viewers. Media also creates a new revenue stream through advertisements, which can be incredibly lucrative.

Next, you have professional sports leagues and their teams getting involved, as the four major leagues (NBA, NFL, NHL, MLB) all have sportsbook partnerships. Many teams have a multitude of them. The leagues could see an increase in revenue due to increased consumption of their services, which is a similar benefit that media companies are expecting. This comes to fruition through increased engagement, sponsorships, advertisement deals, and even data gathering.

A question some might pose is how crowded this industry might become and are there limits? At this point, there don’t seem to be any limits considering how many partnerships a media company or sports league can make with different sportsbooks. Just in the short time sports betting has been legal, 24 sportsbooks have made marketing deals with professional sports teams. I mean Major League Fishing has a sportsbook deal, that’s pretty wild. There are currently four universities that have partnerships as well, and every major sports league has at least one official partner (some leagues have more than five). Sports venues can brandish sportsbooks’ name and image now, along with the ability to host on-site retail gambling depending on the state. There are 20 venues across the country with sportsbook partnerships and 12 major media companies have one as well (if you don’t include Pat McAfee, then it’s 11). Even a multitude of celebrities, including former players and currently prominent broadcasters, have gotten involved. I could see this trend slowing down, but I also could see it expanding with the industry. It depends on what leagues, teams, and the media feels. Constant and expansive advertisement has been seen for years with the WNBA, NASCAR, and MLS, but it hasn’t been prevalent with almost every major US sport until now, as we’re just waiting on the National Football League. The NBA, NHL, and MLB just recently allowed sponsors and advertisers real estate on team jerseys within the past 6 years, meaning brands can pay to have their logos displayed. This is a relatively new revenue stream for many leagues, so it only makes sense from a business standpoint, especially after the financial hardships brought by the pandemic.

Also just from a media perspective, I get why so many organizations are rushing to get involved. You have a sector of sports that is new and largely untapped, a sector that is seeing tremendous growth in revenue – According to the American Gaming Association, revenue for commercial sports betting was at an all-time high in 2021 at $4.3 billion dollars, and that revenue climbed much higher in 2022 to $7.5 billion dollars which is almost a 73% increase. With growth like that, why wouldn’t all players do everything they can to get involved? It’s hard to say exactly how much revenue will be generated by 2030, but that 7.5-billion-dollar figure is expected to grow well over $150 billion.

So yes, maybe the sheer number of sponsorships will cause participating parties to meet their natural limit, but competition is likely to stiffen as time goes on. It is ultimately up to the gambling community to decide how granulated the business will become, as varying sportsbooks are vying for relevance. You could see a natural tipping point where people become familiar or attached to a handful of sportsbooks and block out the others – this is usually what happens with a new product or form of entertainment in the beginning. It starts with massive competition but at some point, major players emerge and take over the industry. This is unless almost every company has something unique to offer, like streaming services having specific and specialized content that can only be found on their platform.

All beneficiaries of legal sports gambling bank on one thing which is increased involvement with their products. Media companies and leagues want more viewers and steady ratings, casinos and online sportsbooks want increased exposure. Since the market is still fresh, all parties are expecting a future return on investment. Just making the business more accessible makes a big difference, because it’s not like people don’t wager on games even if it isn’t legal (maybe I shouldn’t state the obvious here). There is and always has been a demand for sports wagering. Engagement will be seen and measured in many ways, and companies will need to figure out what draws the most interest. This data can be provided by media, which makes a partnership for sportsbooks beneficial.

The draw of sports gambling could bring fresh interest in each given sport as well. There are people who only watch sports because they gamble, while others use sports to enhance their interest. Gambling (especially live) greatly increases the amount of engagement naturally. People are inclined to care when money is involved, it’s pretty simple. Even for sports that don’t get as much exposure in the US as the big four, like Tennis, Soccer, NASCAR, Golf, Boxing and MMA, they could still theoretically experience added buzz and increases in ticket and PPV sales, amongst viewership. It gives people who otherwise may not watch these sports a reason to change their mind. It’d be premature to say that sports betting can reignite interest in sports that aren’t as prevalent, but it’s a possibility. On the other hand, engagement for already popular sports could arrive at a more sustained volume. Variety Magazine and CRG Global recently finished conducting a survey study on sports gamblers’ behavior – the study found that at least 46% of NFL, NBA and MLB viewers watched games more frequently when they placed a bet. The study also found that people are much more likely to stay tuned into a game despite a blowout. This indicates that the element of sports gambling can potentially keep people engaged, where in other cases they’d be likely to disengage.

As stated before, some gamblers only watch sports because they have money on a match and may even place a bet on sports they rarely watch. This is also where new exposure can come from. Widespread legalization means that more people will feel comfortable creating communities centered around the business and they might share the wealth with each other. This is an understated aspect of gambling; people already use the internet to share their thoughts on a certain wager and some take it a step further by charging a fee so others can gain access to exclusive advice.

There are also paid websites, like SportsLine, that use betting experts and an artificial intelligence computer model to gauge the likelihood of major betting scenarios (moneyline, spread, over/under). These resources are likely to make people feel more comfortable about their decision to gamble because they have the counsel of a ‘trusted advisor’, or even better, artificial intelligence.

One of the main keys to growth for the business is changing the narrative. You must convince people that they are making the right decision, that sports gambling can be profitable for them. The only way to do that is by giving people tools for success. Theoretically, the more people who feel like they can win, the more they will play, and the more they will refer others. Even if it’s somewhat of an illusion, you must break negative stigmas to grow favorably. This business definitely has an uphill battle in that regard.

This leads me to the technological future of the business which is largely digital. If we take a step back before online sportsbooks became prominent, you had to physically go to your bookie and make a wager. Now with the expansion of streaming services, it is easier than ever to livestream sports and you can watch many at the same time with multiple devices. This allows gamblers to keep up with sports in real time on a wider scale, making live betting more feasible. Gamblers can go online while watching a game and make a bet at that very moment. Everything today revolves around increased accessibility and sports gambling is following that path.

A brand-new way to keep up with sports in real time is also virtual reality, which is still in the early developmental stages. Virtual reality will allow customers access to games as they happen in real time, but it’d be as if you were there in the stadium or arena watching it. At the same time, you would be able to place bets on the game if the software you’re using supports it. There is even a headset in development by upstart company SB22 called the VR22, which aims to provide merchandising, NFT’s, social gaming, and virtual live bets packaged as part of the in-game experience. It has also been reported that Verizon is partnering with Entain, a sports gaming operator, to get in on the action as well. They also look to create a virtual reality sports betting platform where people can interact with each other and watch live sports.

It’s a step above watching television and it’s very progressive, I wouldn’t be surprised if something like this took a long time to gain true popularity. Nonetheless, the technology is already being used in a similar way.

Meta Quest just announced in January 2023 that it was launching 50+ 180-degree virtual reality NBA games that allow you to sit courtside from the comfort of your home. These types of experiences fully immerse people in the game experience. Much like creating a character for a video game, you could build an avatar that represents you virtually.

This is paired with the inevitable use of cryptocurrency for transactions.

In the same realm as virtual reality, we are bound to see more data based on algorithms and artificial intelligence. Being able to make more educated decisions based on analytics might change the knowledge gap in sports gambling. It allows sportsbooks and gamblers to pick up on trends they might not have recognized before. It also considers things that humans might not calculate as accurately, like the impact of weather, players’ strengths and weaknesses, and historical team trends that may be important. These AI predictive models are intricate and will only serve to make the business more competitive by providing insightful information. Even outside of game data, AI can be used to pick up user data which allows sportsbooks to create a more personalized experience for the gambler in hopes of driving higher usage, much like what we see in social media apps.

It’s important that we come back to the central idea that growth comes from increased engagement. All mentioned factors are interconnected, from widespread legalization you get more aggressive capitalist behavior from major corporations. These corporations help generate new and increasing interest in these services which then makes the market more robust, then you have the integration of new technology like virtual reality and artificial intelligence to make analysis simpler, more streamlined, and interactive. It’ll be interesting to see if major media companies and sports leagues go beyond advertisements and sponsorships to increase revenue in the gaming industry. The influence of sportsbooks seems poised to grow and mature over time, the real mystery is in exactly which way that will be.