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Though sports betting in the U.S. has only been legal for a few years, it's already everywhere. A 2022 Pew Research Center survey found that 19% of U.S. adults had placed a bet on sports in the past year.
If you didn't already know, sports betting was illegal primarily outside of Nevada because of the 1992 Professional and Amateur Sports Protection Act. However, in 2018, the Supreme Court struck it down, letting states decide whether to legalize it.
Since then, many states have jumped on board, and betting has exploded nationwide. In 2023, Americans legally bet a massive $120 billion on sports. That's a 27.5% jump from 2022, and the hype isn't slowing down anytime soon. Super Bowl LVIII shattered betting records in early 2024, and people are already placing bets on the upcoming NBA Finals. While some bettors win big, individual payouts are just a tiny piece of the bigger picture. The sports betting industry pumps money into the economy through taxes and job creation, but there's also a downside problem: gambling is becoming a more significant issue.
In 2023, the gaming industry, including casinos, in-person gambling, apps, and sports betting, pumped a massive $328.6 billion into the U.S. economy. According to the American Gaming Association, this industry is more than just people placing bets; it's a major player in the economy. According to the American Gaming Association, it employs over 700,000 people across the U.S., more than the postal service or air travel. These jobs help fuel the economy since workers spend their paychecks, keeping demand up and creating more jobs and money. But not all of these jobs pay well. Data from the Bureau of Labor Statistics shows that in 2023, the average salary for gambling dealers was $40,030, while the national average was $63,795. So, while the industry discusses its economic impact, not everyone working in it makes a livable wage.
Countries like Mexico and Colombia were pioneers in establishing connections with the sports betting industry. In 2016, Colombia made history as the first Latin American country to set up a legal framework for online betting. On the other hand, Mexico's sports betting scene has grown over the years thanks to its more relaxed regulations. In Mexico, though, operators must get a license under the Federal Games and Draws Law to operate legally.
Brazil, on the other hand, took longer to legalize sports betting. This delay was not unexpected because it is the largest country in Latin America, with a population of over 200 million. With a profoundly passionate sports culture, Brazil presents an ideal market for sportsbook operators to thrive. Brazil's decision to regulate online sports betting is expected to yield tremendous economic benefits for the country, not least through tax revenue, foreign investment, and job creation.
While tax revenue and job creation are significant benefits, it is equally important to consider the economic costs associated with gambling. The National Council on Problem Gambling estimates that problem gambling carries a social cost of $14 billion, factoring in expenses related to criminal justice, healthcare, job loss, bankruptcy, and other financial consequences stemming from excessive gambling. A recent St. Bonaventure/Siena Research survey highlights the risks associated with sports betting. Among men aged 18–49, 39% reported engaging in sports betting, with 38% admitting to wagering more than they felt they should. Even more concerning, 19% admitted to lying about the extent of their gambling, while 18% reported losing money intended for essential financial obligations.
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