The History of Online Sports Betting in the United States of America

There’s no gain in saying that the sports betting industry in the United States has grown considerably. The legalization of sports betting in the region has faced several ups and downs, but this activity’s reputation has continued to grow extensively. If you wish to have a clearer picture of the early days of the sports betting industry in the US, you’re in luck. This article details the history of online sports betting in the United States of America to date.

What is the Origin of Sports Betting in the US?

Gambling activities have been around for a long time in the United States. However, bettors in the United States had to wait until the mid-20th century to try their hands at this activity. Finally, sports betting was introduced to the state of Nevada in 1949. This action was part of an attempt to boost the region’s tourism industry.

After legalizing sports betting in Nevada, the government introduced new laws to regulate this activity. Part of the new gambling laws established by the federal government in 1951 was a 10% tax on sports betting activities. This tax prevented bettors from staking, and the profits of sportsbooks and betting operators were greatly diminished. It wasn’t until after twenty years that the government reduced the sports betting tax to 2%. Not long after, many bettors came out of the shadows in the Las Vegas metropolis. The industry has grown so much that you can find many Colorado sports betting sites to stake in a few of your favorite sports.

It’s worth noting that more regulatory changes were introduced in United States sports betting between the 1960s and 1980s by US Attorney General Robert F. Kennedy, whose goal was to reduce illegal sports betting in the country.

When did Online Sports Betting Start in the US?

Following the massive wave of technological advancements that have rocked human civilization since the 1980s, online sports betting became possible. As more people bought personal computers and mobile phones, this new type of betting gained considerably more demand. The widespread applications of the internet also made it possible to place sports bets from the convenience of their homes. By the early 2000s, online sports betting had gone mainstream in the US.

Another major bane to the growth of online sports betting in the United States was 2006 legislation that prevented betting operators from accepting deposits via ETF transfer, credit, or other money-transmitting methods. Even banks were not left out of this payment processing restriction. As a result of this new law, it has become harder to bet on sports. Therefore, many foreign betting operators and sportsbooks were forced to abandon US bettors and move to other regions with less stringent payment processing options.

Finally, there was a big break for sports betting in 2018 when New Jersey Governor Phil Murphy approved Assembly Bill 4111. This law established casino and racetrack betting as pastime activities in New Jersey. Eventually, these favorable laws were extended to mobile and online sports betting. This led to an unprecedented growth of the sports betting ecosystem in the region. Before long, other states in the country followed suit with the legalization of online sports betting. However, age and betting limits were introduced to protect customers.

Today, we have more than 23 online sportsbook casinos operating out of New Jersey and licensed by the New Jersey Division of Gaming Enforcement. There are also different categories of online sports betting, including horse racing, football, basketball, tennis, Formula 1, etc. Bettors can choose whichever sport they’re most familiar with to stake and win real money.