The first thing many people may wonder about this new report ranking all 50 states on the accessibility and friendliness of their sports betting markets is that New Jersey is not among the top four. If that weren’t strange enough, Iowa and West Virginia are.
So what gives? The report, put together by the advocacy group Consumer Choice Center, describes its mission as fighting for lifestyle freedom, innovative technologies and smart regulation. The index ranks states based on a number of factors: legality, availability to wager and the number of sportsbooks per capita, according to Online Gambling Daily.
States earned points based on the status of their market when it comes to factors: legal (10), illegal but with legislation pending (5), and illegal with no legislation (0). The latter group also scored a 0 in every other category as they don’t apply to them.
As for types of betting, in-person scores a 1; online betting a 2; and the ones with both types a 3. If the state controls the market it’s worth 1 point; if casinos run the show, a 3; and a 5 in the sportsbook oversees the market. If the state controls betting it’s worth a 1; if casinos control the market they were given a score of 3. In those cases where sportsbooks control betting, they received 5.
The top four finished with 21 points. Arizona, Indiana, New Hampshire, New Jersey and Wyoming, all tied with 20. In the case of New Jersey, betting on collegiate events is currently prohibited, but pending legislation is seeking to overturn this rule. That kept them out of first place.
The 14 states that ban sports betting, such as Alabama and Georgia, finished at the bottom. Missouri, Nebraska, Ohio, Maine, Kansas, and Florida all scored a 5 because they currently have illegal markets but have legislation pending.
Opposition still exists in certain states from bans or limited accessibility as a result of state governments, such as limiting the type of sports or the type of locales.
“Limitations without concrete and rational justifications creates inefficiencies in the marketplace, which incentivize consumers to place bets via the illegal market,” Consumer Choice says. “With the exponential rise of illegal online gambling options, sports gambling is inevitable, the only question is will people participate in a legal manner, or illegally?”
States should follow New Jersey as an example. The state has generated over $229.1 million in state tax revenue since launch.
“The key to stamping out the illegal sports betting market is legalizing sports betting and having an open and competitive market where legal sportsbooks compete for consumers,” David Clement, North American affairs manager for the Consumer Choice Center and co-author of the report, said according to The Center Square. “Not only does this help grow the legal market, but it also actively discourages consumers from placing bets in the illegal market.”
“The reasons for New Jersey’s success are simple: they keep taxes low on sportsbooks, mobile sports betting has become a priority, and while there is government oversight, most of the industry is run by commercial sportsbooks,” Clement said.
Most of this could be replicated elsewhere—whether it will or not, remains to be seen.
