Sports Leagues And Offshore Sportsbooks In The New U.S. Sports Betting Era
Even since the Supreme Court ruling this past May, the major sports leagues have been, behind the scenes, lobbying to have their say on how sports wagering should be legalized.
Another player looking in from the outside are the offshore sportsbooks, which ever since congress set out to stop sports betting in 1992, have capitalized from the U.S. bettors looking to fill their appetite.
What the future holds for these sportsbooks, and how the major leagues are looking to take a piece of the pie, is going to be the topic of this post. Join me as we discuss the current state of the sports betting markets and what the future may hold.
The Current State Of Sports Betting
Since the Supreme Court's ruling this past may, which overturned the 1992 law known as PASPA, which prohibited states for regulating sports betting, fast forward to today, and multiple states have either legalized sports gambling or are in the process to do so.
Even though the move towards legalization is on its way, this process is expected to vary by state. At the regulatory level, some lawmakers want to focus on mobile sports betting, while other states are waiting on the fences to see what regulations are applied by other states.
Overall there are two major topics which may be impacting the legalization procedures the most; taxes and the so-called "integrity fees". These integrity fees are being aimed for by the major leagues with the purpose of monitor betting activity that falls outside the ordinary. This past July MGM announced a never-before-seen deal with the NBA.
High taxes and fees are two major setbacks that can keep bettors going overseas to satisfy their betting needs.
Major Leagues Looking To Get In
The other factor to consider is the aforementioned "integrity fee". At the head of this push are the National Basketball Association and the Major League Baseball, which are pushing for their saying on how sports betting should be regulated.
These integrity fees would have the purpose of covering costs that these leagues will incur for policing and watching against the fixing of games. For this purpose they have drafted a model to aid States include these fees into the legislation. Lobbyist have been bankrolled and dispatched across states for this purpose.
And these leagues have plenty of incentives to do so, with a sports betting market which estimated worth reaches $41 billion per year, and a integrity fee of up to 1 percent of every wager placed on sporting events, the leagues can reap billions of dollars which are currently in the domain of credit and PPH sports betting agents, and offshore sportsbooks.
How offshore sportsbooks are affected by this
One of the major questions that rose after the U.S. Supreme Court ruling, was the future of offshore sportsbooks, most of them located in places such as Costa Rica, Panama, and the Caribbean.
These services, coupled with Price per head sportsbook providers, --which offer powerful live monitoring capabilities to betting operators, are expected to be affected by the new climate towards sports betting in the U.S.
Since the 1992 PASPA ruling offshore sportsbooks have become rooted in american culture and mainstream media, so much that it’s not difficult to find sports betting odds been broadcasted before your favorite NBA game or MMA fight.
Despite the advances on U.S. regulation, as of December 2018, only Nevada and New Jersey allow for mobile wagering across the state. The discussion of taxes and fees slow down the progress and this is expected to continue as law makers go back and forth with all parties involved to reach a mutual agreement. This is where offshore sportsbooks keep the advantage.
Another factor that favors the Offshore Sportsbooks is the curiosity and popularity for sports betting that has risen ever since the repeal of PASPA. Offshore sportsbooks expect their player base to rise as eagerness to start betting as soon as possible surge.
Even if bettors start placing their tickets on the local casino or horse track, a considerable amount of players is expected to eventually move online to enjoy the benefits provided by offshore sportsbooks. Local sportsbooks are barely starting to implement live betting and mobile technologies, whereas offshore sportsbooks offer tried and tested solutions and experiences to their players.
Even though the journey for legalization of sports betting has begun, some important states such as Texas and California are not expected to see regulations in full form until 2020. When their residents don't find their state ready to accept their wagers, they don't have other choice than going online.
Same scenario is expected to occur in multiple states across the United States territory.
In the near future, simultaneous markets are expected to co-exist, as offshore sportsbooks and local casinos fight their way for the gambling market.
One thing is for certain, sportsbooks located in Central America and the caribbean are not backing down without a fight.
With the advent of this new era in sports betting, both offshore and local business are optimistic in their future.