Research Brief: State Legislative Update on U.S. Sports Betting & Online Gaming August 2020
Sports have begun to reemerge with more traditional sports with which American consumers are more familiar and have a deeper affinity for wagering. After nearly five months since the start of the Great Shutdown, sports are starting the long and winding road to recovery. Optimism reigns for the fall as we potentially see the return of football as well as the potential addition of the remaining 2020 schedule for the NBA and NHL that just recently restarted. MLB’s abbreviated schedule has faced a bumpy ride out of the gate, not just with Dr. Fauci’s first pitch at the Washington National’s Game, but by the subsequent canceling of games due to coronavirus-related concerns. Nevertheless, while the stands may not be full, sports have returned.
As GMA continues to look at sports betting markets that are limping through the downturn (while also exposing sports bettors to new options), the numbers continue to show that a competitive market leads the way for states versus those that have a limited number of providers or a model driven by land-based gaming. Those states that operate a full mobile wagering product continue to dominate the market and offer the best alternative to the black market. That being said, tax rates also matter and can inhibit a market, as can be seen in states like Pennsylvania. While offering a full mobile experience, the tax rate continues to impose challenges by limiting the operator’s ability to spend marketing dollars, cutting into overall operations, and leaving money on the table for the state that, in a competitive gaming region, would actually see an increase in revenue with a decreased tax rate.View Full Article