Stressed by the coronavirus pandemic, state treasuries across the United States may be getting relief from an unlikely source - the sports betting industry. After six months with few sporting events, plants have rebounded in the third quarter, generating $352 million income, i.e. by 47% more than in the same period last year, Bloomberg reports.
While other gaming categories have been hit with pandemonium and their tax contributions to the exchequer have been lower than usual, sports betting is thriving and despite a decline in sporting activity in the first half of the year has seen 27% year-on-year increase. -year for the period January-September, earning a total of $678 million .
Things seem to be looking good for the industry with winter sports due to start in a few weeks and increased betting revenue. "Sports betting is having a great year and there is a lot of enthusiasm about it." - said Dave Forman , senior director of research at the American Gaming Association, adding that despite a bit of a reshuffling of the sports calendar due to changing leagues, revenue indicates "a growing appetite for sports betting."
Profits is poised for further expansion as sports betting will be legal in a total of 26 states and the District of Columbia beginning in 2021 after a series of successful referendums or legislative actions in states such as Virginia , Colorado , Texas and New Jersey, among others .
New Jerseys y Pennsylvania Among A-Listers in Revenue
Last month New Jersey , Pennsylvania and five other states celebrated their best months ever in terms of sports betting numbers and tax revenue. These milestones come at an expected time for the states, as 35 of them is currently undergoing decrease in tax revenue , according to the Tax Policy Centre. New Jersey is on track to set a new revenue record for all jurisdictions this year, beating Nevada's high for 2019. At $5.3 billion. Last month alone, the Garden State designated a total of $800 million in sports betting revenue, resulting in tax revenue of $7.4 million.
Patrick Eichnerthe Australian bookmaker's director of communications PointsBet, is optimistic that things will go up for the sports betting industry in states like New Jersey, which are seeing record numbers. In addition to winter sports, the NBA is expected to resume in a few weeks. Although basketball markets were hit by COVID-induced restrictions earlier this year, the tournaments will return with March madness that is scheduled to take place in 2021, and the NCAA is planning a single-site event in Indiana.
Empty coffers bring new respect to sports betting
Once despised by politicians, universities and members of the sports business world, the betting industry has recently enjoyed a surge in popularity as states have sought to fill their treasuries after spending millions to mitigate the economic impact of the coronavirus pandemic. The NCAA, for example, now allows sponsorship of its colleges. Just two years ago, it sued to make sports betting illegal following a rejection by the United States Supreme Court . The appetite for tax revenue helped push through legislation that would allow sports betting to launch in Maryland, Louisiana and South Dakota in 2021.
Last year, sports betting brought in a total of $118 million in taxes in 14 states, with stakes ranging from 2% to 51%. Eilers & Krejcik Gaming , a self-described boutique research firm, expects total tax revenue in the United States to reach $5 billion by 2023.