Mobile betting has kicked off quite amazingly in the US gambling market, but there is a long way to go to achieve Europe’s level of the iGaming industry. Corey Padveen explains the hurdles that are yet to be recovered to excel in the market.
Sports betting has always been a famous pastime, and players have managed to strike their way in the American betting market during the years of prohibition. The gambling market has now skyrocketed to the new levels of highs when the states are slowly welcoming the multi-billion dollar industry.
For Example, in New Jersey, online and mobile sports betting became legal in the year 2018, and in its initial year, the market show an increase of 1600% and has only been growing since then. Now that New Jersey has shown tremendous growth of demand for mobile betting many states have opened their doors for the market, but such record-breaking success does come with some challenges.
Since the invalidation of PASPA in 2018, markets such as Delaware, New Jersey, Rhode Island, Pennsylvania, Mississippi, West Virginia, and many more states have allowed mobile sports wagering, and many states are still looking at the potential the market holds.
Undeniably the demand was way too high to ignore, and hence the cost of maintaining the prohibition extended.
As per the reports, sports betting will be responsible for 40% of the total gambling revenue of the world in the next 36 months, which is growing by $144 billion worldwide.
The sports betting market of the US is estimated to be in the cap of between $60-73 billion and keeps on increasing by $10billion per year.
Hurdles of sports betting in the US
Instead of increasing popularity and interest in the potential of the market in America, two major hurdles are standing amid the success of the industry.
The first and the most crucial hurdle is the legal infrastructure of sports betting in America. Second, is the legal challenges focusing behind the scenes on the technical development of the sports betting platform.
One of the most common challenges casinos operators face is going through the complicated and pressurizing legal landscape of the country.
Acquiring a license for the sports betting platform adheres to state-by-state laws, and operators have to follow the state-specific laws.
If one acquires a license in Pennsylvania, he can operate its sports betting platform anywhere in the state. If a casino operator wishes to get a sports betting license in Mississippi, he needs to have a land-based partner and the mobile wagering option can only be practiced inside the casino.
The state-specific rules make it difficult for the operators to fully explore the market and bring new innovative technologies.
Hence, operators need to make an important decision about whether they want to make their investment. Since the operation needs to be somehow confined as per the state’s laws, it is quite tough to expand the business.
Although sports betting is highly appreciated in the United States, the level of usage of the platform depends on the state’s laws.