Why Is Sports Betting Everywhere? [VIDEO]
The expansion of legal sports betting across the U.S. began on May 14, 2018, when the Supreme Court struck down a federal law. In the case of Murphy v. National Collegiate Athletic Association, the court ruled the Professional and Amateur Sports Protection Act (PASPA) was unconstitutional. This decision found that PASPA violated the Tenth Amendment by forcing states to maintain a sports betting ban, infringing on state sovereignty. The ruling immediately gave every state the authority to legalize and regulate sports wagering.
Online Shift and Market Control
Following the ruling, dozens of states quickly passed laws to authorize sports betting. This new industry is largely driven by online wagering, with mobile apps accounting for most bets. This digital shift made wagering easier and faster for fans nationwide.
Two companies, FanDuel and DraftKings, swiftly secured dominance in this new market. They leveraged their existing customer lists from their Daily Fantasy Sports (DFS) operations to capture most of the legal sports betting revenue.
This early advantage allowed them to become the industry leaders, often controlling over two-thirds of the national market share. They cemented their position through extensive advertising and deals with professional sports leagues and teams.
Regulation and Responsible Gaming
The rapid expansion led to increased visibility of sports betting across all media. State regulators now focus on maintaining control over this massive system. They set strict rules to protect consumers and require operators to promote responsible gaming through specific tools and support.
This regulated framework is meant to manage the inevitable presence of gambling while stopping offshore, unregulated sites from targeting U.S. players.
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