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Legalizing sport betting

Introduction
Sports betting is an activity which involve predicting outcomes of sports by placing a bet
on the result. Sport betting is one form of gambling which is common in multiple states of
United States of America although it is considered as illegal. In the past few years, legalized
sport betting has grown from an imperfect activity to one that is tremendously ordinary. Research
done in 2012 shown that three in five Americans reported to participate in some form of
gambling in the last six months, with sport betting being the most collective. However, legalizing
sport betting has raised a controversial debates in both state and federal governments about the
benefits and costs of this activity to the economy. Numerous lawmakers have concluded that
sport betting is a form of evil deed to the society because it con billions from citizens in order to
reward for their misconduct of tax funds (Banks 54). In 1992, Congress approved a law
prohibiting sports wagering everywhere in the United States excluding in the states that had
already adapted this form of gambling.

This form of activity has always been viewed as diverse from other activities of the
economy. Contrasting other activities in which the market is the primary factor of demand and
supply, government conclusions have largely contributed in considering whether sports betting is
legal or not. Schwartz (170) states that one of the reason why various states consider sport
betting as an illegal and unethical act is that is lead to negative effects to the society such as
family and financial distress plus increased crimes. Dissimilar, legalized sport betting has been
seen improving welfare for the consumers who participate conscientiously. Moreover, legalized
sport betting has advocated to potential economic benefits to various states in form of job
creation and development. Anderson (462) adds that States, federal and local governments are
also benefiting because sport betting is one form of revenue-generating activity which leads to
rise of government revenues through taxation.
In addition, the gross revenue from states which has legalized betting was realized to
reach a record of 85 billion US Dollars in 2010 (Banks 54). More than 85 percent of this total is
accounted for by revenues raised from sport betting. This is a direct illustration that sports
betting should be legalized in United States of America and even most of the Americans are
backing this issue to be done a lawful activity. In this research paper, I will exemplify the reasons
behind legalizing sport betting since it can be a beneficial activity to the Americans and to the
states generally. For instance, Canada has legalized sport betting and it has experienced multiple
benefits such as job creation, decrease in criminal activities and additional revenues. If the
United States of America can follow the outfit of Canada, it could also realize numerous benefits
that Canada has realized through legalizing sport betting.
Currently, the United States of America is constantly looking for methods and techniques
to create new revenue sources which can contribute in funding new projects. Generally, it

achieves this goal by cutting public expenditure or raising taxes (McGowan 54). However, by
legalizing sports betting system, numerous Canadian provinces have grasped an additional way
to generate revenue which fund various projects. Authorizing such a system in the United States
will provide the country with a way to create additional revenue without cutting public
expenditure or increasing the rates of taxes. To begin with, let us take a look to the current
condition of Canada and how it has benefited from this system of sports wagering.
Every Canadian province has its own entity responsible for running its sweepstakes
system. For example Gaming Corporation and Ontario Lottery is one of the main provinces
which is running sports betting system in Canada since it is the most populated province. This
system is permitting its citizens to place wagers on various sporting events. According to
research conducted in 2012, the lottery system of Ontario generated 3.5 billion US Dollars in
commercial activity for the province alone. Out of the total revenue generated in Ontario, half of
it belongs to the province. Anderson (462) depicts that a portion of this revenue left in this
province was applied in health related programs, provincial precedence and in hospitals. The
other half goes towards municipalities that host the facilities, local economies, commission to
lottery traders and employee payroll. Moreover, about 65 million US Dollars is also utilized in
charitable donation, treating problem gambling and sponsoring community events (Richard
Klassen 12).
However, this have also applied to the least populated Canadian provinces whereby the
amount of revenue generated by legal sports betting is substantial. Take for example the province
of Manitoba, this province comprise Sweepstakes which offers Sport betting to the residents of
Manitoba. This province consist the least population in Canada and it is approximately 10
percent of the population of Ontario. Consequently, the Manitoba sweepstake, including Sports

betting, created over 70 million Canadian dollars in revenue in the year 2011 (Anderson 462).
The revenue generated from these sweepstakes mainly goes towards community projects and
education as well as to the government programs. Most of the Canadian provinces after
accessing to this supplementary revenue, they are allowed to relieve some of the problems on its
tax payers (Banks 54). Currently, Edmonton wishes to build a new sports stadium to
accommodate its hockey team. The current amount of money that Edmonton lacks to make its
vision reality is approximately 100 million US Dollars. Sports sweepstakes have provided
substitute solutions to raising capital to see that many project gets done. For instance, if
Edmonton wishes to advance with the construction of this stadium, it could raise taxes in the area
thus causing a burden to many of its citizens but with the system of sports betting, this project
will be promoted greatly (Schwartz 170).
Furthermore, between 2001 and 2003, Canadian Gaming Association allowed the
national hockey team to compete with the wealthier United States teams. Since this sports
betting system was still legalized, a small ration of each bet placed on the hockey teams of
Canada would be waged to the team as a licensing fee. During this period of three years, the
sweepstakes system generated 2.8 million US Dollars for all hockey teams of Canada (Richard
Klassen 12). It is also predicted that most Canadian provinces may be able to generate even more
revenue for their provinces if Canadian government legalize single game sport betting. Presently,
there is a push to permit single game sports betting and this is suggested to be the source of
revenue for Edmonton to complete its hockey arena. In addition, the Canadian Gaming
Association approximate the revenue generated from illegal gambling as between ten and forty
billion every year on single events in Canada. Since sports betting is a new source of revenue for
the country, numerous provinces of Canada can concentrate the revenue on new public

expenditures and Edmonton would be in a position to utilize the profits from single game bets on
a new Edmonton stadium without troubling its citizens (McGowan 54).
Nevertheless, legalizing sports betting in the United States of America would ensure the
country to benefit from an already prosperous industry. Schwartz (170) argues that the robust
revenue stream will be high when sports betting will be legalized. For instance, in Nevada,
numerous sports books have been benefiting for the previous years. In 2011, it is understood that
more than three billion US Dollars were gambled lawfully on sporting events in Nevada,
outstanding all earlier records. As a result, the sport book of Nevada earned 141.5 million US
Dollars in revenue. However, this amount of revenue was just approximately 5 percent of all bets
placed. Presently, the government of the United States of America has estimated that between
100 and 400 billion US Dollars are unlawfully gambled in each year. Therefore, if this money is
betted lawfully, it would generate a new market that could be taxed, profited and regulated on.
Following alike principles in Nevada, the government could earn income at a rate of 5 percent of
yearly bets placed. Approximately four billion US Dollars could be earned by the government
annually if the estimated unlawful sports bets turn out to be on the lower end (Banks 54).
However, the government can still earn a revenue of 20 billion US Dollars annually if the
estimated amount of illegal bets is towards the higher end of the scale. Considerably, this
revenue could be utilized in funding more important projects similar to the resolved of the
recently passed marijuana regulation in Colorado. Though not all people back the application
and trade of marijuana, the government of Colorado found a technique to make its sale advantage
the society (McGowan 54). By authorizing marijuana, Colorado has suggested to utilize the
revenue generated by taxes to fund public schools. If the United States Congress could pass a
sports betting legislation it can earn revenue and generate more support of its citizens by using

the profits earned in sports wagering to improve communities, decrease the deficit or fund public
schools (Houlihan 311). Furthermore, Wagering has become universal, and a major basis of
revenue for various states. 43 states together with District of Columbia have sweepstakes.
Meanwhile, every state except Hawaii and Utah have money-making gambling in some kind and
over forty states have racecourse betting. But if you can consider sports betting, it is much
rational than slot machines and sweepstakes because they involve additional skill and permits
politicians to show their inner puritan (Silver n.p).
Although United States congress was aiming to end sports gambling, it formed a huge
underground sports wagering market which has currently expanded to the internet. The inability
of Americans to place legal sports bets has resulted to a rise in illegal sports betting activity
which is unlawful. In 1996, President Bill Clinton created the National Gambling Impact Study
Commission which was responsible for conducting factual and legal studies concerning the
economic and social effects of gambling in the United States of America. This commission has
approximated that the value of illegal sports bets close to four hundred billion US Dollars per
annum. Research conducted in 2011 shown that Nevada generated 2.88 billion US Dollars in
sports bets. Nevada is considered as the major gambling hub in the United States of America, but
this commission shows that Nevada books generates less than five percent of yearly sports bets
(Schwartz 170). Underground markets and organized crime mostly regulate the remainder of
these bets. Unlawful sports betting rings are active and flourishing all over the United States of
America. In 2011, New York City discovered five sports betting rings with close links to two of
the main crime families. In some cases, the gambling rings accepted bets via text message,
website or phone call. It is noted that these gambling rings earned roughly 30 US Dollars
annually in illegal wagers (Anderson 462).

In June 2012, the Revenue Standard broke up a Texas wagering ring that took illegal
sports bets. This ring comprised more than twenty co-plotters that had been conducting their
business for almost ten years. These plotters ran their business illegally by taking bets through a
cost-free number, as well as an offshore website. During revenue regulation in 2010 only, this
sports gambling ring accomplished to generate over one billion US Dollars in illegal bets. Each
plotter earned more than 40 million US Dollars. In Contrast, this amount is realized to be more
than 30 percent of what the complete state of Nevada generated the next year (Anderson 462).
All these revenues from these gambling rings are well value the risks of criminal forfeit.
In some circumstances, controlled crime families apply the ill created money to fund
other unlawful activities such as threats and loan sharking. Banning sports wagering has not
resulted to a decrease in sports betting as an alternative it has essentially resulted to an increase
in crime generally (Houlihan 311). However, returning sports betting back to the states will aid
greatly to cut back on this rise in crime. In simple terms authorizing sports betting will sanction
the United States of America to adjust and monitor sports bets. Planned crime will be well
controlled as a result of making sports betting legal and the beneficiary of the sports betting
market will also be regulated. Conserving the integrity of sporting events is important, but it is
not worth the criminal activity as numerous people consider it.
All the same, the billions of dollars that these wagering rings have safeguarded through
illegal sports bets, there are still billions of dollars uncalculated yet. Illegal sports bets being
placed each year are benefiting other unlawful gambling rings both off and on shore. Therefore,
lack of proper control of gambling rings and sports betting will continue to prosper. Permitting
states to control sports betting activity would significantly cut down the amount of illegal bets
placed annually because gamblers would have a safer substitute. Without this substitute, people

will still endure to fund criminal activity by placing bets because this is the only way they can
through illegally run betting rings. Numerous politicians are anxious with upholding the integrity
of professional and unprofessional sports games. Organizations to control corruption are always
available with an aim to enforce rules and regulation in sports betting practices (Houlihan 311).
Nonetheless, these organizations disregarded the reality that people are going to continue to
place bets on sporting events and unlocked the door for a much more illicit and dangerous
activity. Currently, the illegalization of sports betting has amplified criminal activity and
provided organized crime with new techniques to safeguard money to further other criminal
conduct. By ensuing suit of legalizing sports betting, the United States of America can reduce
gambling related crimes while also attaining a needed economic enhancement.
Accordingly, the United States of America can make a legalized sport betting industry
function, and it should apply the current system of Canada as a guide (Richard Klassen 12).
Although, many people illustrate sports betting as a form of crime, financial and family distress
and a form of addiction, United States should not look upon at these aspects but instead should
focus on the countless benefits that can result from this system. For instance, Canada has been
able to raise revenue but it has not been able to reduce gambling related crimes effectively by
allowing its people to place bets through a lottery system. Not everybody wishes to place
multiple wagers at a time, so they have pursued illegal means to do so. If the United States is to
legalize the sports betting industry, single game sports wagers should be legalized (Banks 54).
Currently, Canada is realizing an increase in revenue annually from single game sports bets.
Nevertheless, gambling crimes will decrease at a faster rate than by simply legalizing sports
betting.

Moreover, it is the free choice of athletes that affect how the public views these
competitions. Current enactment enhancing point shaving and drug scandals have not influenced
viewership of sports. Therefore, legalizing sports betting should not lead in a rise in outrageous
and immoral games (Houlihan 311). If Congress is truly anxious with maintaining the integrity
of sporting measures, it can pass a law that bans rigging fights, point shaving or throwing games.
Similarly, the United States should also allow placing bets online. Each state that chooses to offer
online betting services should be accountable for maintaining and creating its own website.
Internet gambling will lead to creation of more jobs and further generate high revenue.
One of the biggest criticisms that Canada has received regarding its legalized betting
system is that the provinces only contribute a small portion of their earnings to battling gambling
problems (Richard Klassen 12). To make sure that this does not happen in the United States, the
federal government could pass rules that all states must abide by in order to have a lawful system
of sports wagering. These rules should comprise a set rate that all states must fund towards
programs related to gambling. In passing such rules, the federal government would assure that
the United States does not make the same mistake as Canada. Every other aspect not controlled
by the federal government can be reserved to the local states to resolve.
Moreover, gambling is not only popular in the United States and Canada but also it is
practiced in other parts of the world. For instance, in England, a sports wager can be placed at a
stadium kiosk, using a television remote control or can be placed on a smartphone. In light of
these local and worldwide trends, modifications should be done in the laws on sports betting. The
Congress should approve a federal framework that permits all states to allow betting on
professional sports such as basketball, subject to technological safeguards and harsh supervisory
requirements (Surowiecki n.p). These necessities would comprise reporting of uncommon

betting-line activities and mandatory monitoring, measures of minimum-age verification and

authorizing protocol to confirm authentication of betting operators.
Conclusion
Generally, in order for legalized sport betting to work in the United States, the Federal
Government should be in control setting the basic regulations. This would allow the United
States to insure that all states are on a level, as to not make betting system of one state more
desirable than another. If a larger state is offering higher likelihoods than a smaller state, the
smaller state may not benefit as much as if the likelihoods were all set at the same extent.
Comprehensibly, the United States of America may not want to create a group to set the
likelihoods. It can also set the minimum and maximum rate of tax that can be indicted per bet.
Setting the tax rate would have alike consequence as setting the likelihoods. For instance, if a
state can set a lower tax rate, it may be able to appeal more gamblers than a state that imposes a
higher rate. In general, sports betting should be legalized in the United States and if a good
reason can be allied to sports betting, more citizens may find themselves supporting a bill to
authorize it. In doing so, the United States will reduce crime, upsurge employment, and finally
raise a tremendous revenue through taxes.

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