How Sports Betting Contributes Over $100 Billion Annually to the US Economy

Visual Capitalist  |

In 2015, Americans bet $149 billion illegally on sporting events.

Today’s infographic from Longitude breaks down America’s multi-billion dollar sports betting industry. It shows the four states where fixed odds betting through bookmakers is legal, and it also compares a more legal alternative that’s available in 43 states.

THE SPORTS BETTING INDUSTRY

Sports betting is a thriving underground business. A recent example of this is Super Bowl 50, which is estimated to have fetched a record-breaking $4.1 billion in illegal bets. Only an additional $100 million of bets, or 3% of the total, were made legally.

But what’s the difference between a legal bet, and an underground one? It all depends on where you live and how the betting is done.

Fixed-odds betting, in which odds are created by a bookmaker, is legal in just four states: Montana, Oregon, Delaware, and of course Nevada.

Pari-mutuel wagering, which instead pools players bets together to calculate odds, is legal in 43 states. Pari-mutuel payout odds depend on the amount of bets, and generate transparent profits because of fixed commission fees paid to the operator.

The US horse racing industry already uses pari-mutuel wagering, and it generates a range of economic benefits. This includes $102 billion in economic benefits generated annually and the support of 1.2 million jobs across the country.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.


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