Sports betting hype in the USA according to the European model…

…but in a different way. Betting on sports activities is as popular as ever in the USA. Since games of chance were regulated in 2018, one is meanwhile more or less free to play games of chance in 29 states. Those responsible have based the procedures on the European ones but the services are more regionally restricted.

Those who previously wanted to place bets in the United States had to go to Las Vegas or to an illegal betting place. In 2018 however the requirements were amended to legalise the whole market and liberalise it.

At the time a legal action of the Federal State of New Jersey at the Supreme Court had led to the legalisation of sports betting in the region. Chris Christie, the governor at the time wanted to have a reliable source of income for the state. And this was successful – currently more than 4 billion Euro per year are generated from games of chance. The issue became a precedent – and several other federal states followed the example of New Jersey.

Thus, the USA has for years been experiencing an ever-increasing sport betting hype. More than 7 billion US-Dollar in sales were recorded just from the Super Bowl. The infrastructure behind all this is oriented on the European sports betting models. However, the Americans are using another way to implement it.

Stronger regional limitation on betting services

Those responsible in New Jersey, which is the cradle – if you want to call it like that – of the American sports betting liberalisation, have looked at the European procedures when implementing their services. However, they did not like the prevalent principle in Europe, mainly that betting providers can pass on their services on the internet directly to all players.

In their crucial decision they took into consideration that the existing casinos or betting offices could become empty or would have to accept several financial losses in the long-term. They then decided for a hybrid model.

This system permitted casino operators to provide sports betting for the population or tourists in two ways:

• locally at the respective casino, i.e., on its premises.

• online – but in this case not in every region of the country.

In New Jersey the betting licences are issued to the casinos and the online providers of sports betting may then provide their services within the state. It is obligatory that to be able to place a bet, one must be within the borders of the state. One step in the direction of territory of Pennsylvania or New York means that the account will be blocked. Many other states are working in this way.

One of the main conditions for receiving a sports betting licence is that the bookmaker must be based and present in a casino in one way or another. Operating a bar or café is enough. Having a betting shop or office is not enough.

Hybrid betting services is definitely the business model with a future for the USA

The business model seems the best way. Casino officials said that the betting services were very well received. The typical tourists gather around the slot machines as well as the roulette and poker tables quite often. Betting fans of all kinds visit the sports bars or cafés which are usually found at the entrance.

The sports bars and cafés are equipped with comfortable armchairs and provide reasonably priced drinks and a relaxed atmosphere. They can take a drink and follow sports activities on several screens - American football, basketball, baseball, football, racing, rugby and more. They do not place the bets at the desk but at a terminal. They can bet simply with a smartphone.

Player protection is expandable

As in all countries in which (online) games of chance are legalised, the risks which are associated with them are also a big issue in the USA. Addiction experts from the National Council on Problem Gambling estimate that around 22 million (!) people in the United States exhibit (at least) one gaming behaviour which affects their life in a negative way in one form or other.

However, there is no reliable player protection technology which enables the sports betting providers to control the access of acute problem players. A look at what is happening in Europe could be helpful again here. However, according to the reports, they do not only want to adopt a data blocking system as OASIS, but a system which can analyse the behaviour of the betters and recognise those who have or could develop a gambling problem. The use of this technique should then be a further prerequisite for acquiring a licence. However it is still not clear how and if these ideas are implemented.

Conclusion

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