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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Acquirer Market Spotlight: Sports and E-sports Betting
The Shift to Legal Sports Betting in the United States:
- Prior to the 2018 repeal of the Professional and Amateur Sports Protection Act of 1992 (PAPSA), a vast majority of sports betting was illegal.
- For example, only 3% of the $10 billion wagered on the 2018 NCAA men’s basketball tournament was bet legally.
- Americans’ increasing willingness to place illegal bets reflected a gradual change in public perceptions towards sports betting.
- While over half of Americans disapproved of legalizing sports betting in 1993, that dropped to 45% by 2017.
- In 2019, states with legalized sports betting experienced a 12% increase in online and mobile betting spend with legal operators.
- Likewise, states with legalized sports betting saw a 25% decrease in spend with illegal bookies in 2019.
Rapid growth in sports betting is gaining attention not only from investors and regulators but in the world of banking and fintech too. Even though the regulatory environment is friendlier, there are still risks in servicing this nascent industry.