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AGA Report Reveals that Bettors in the USA are Embracing Legal Markets
By Jeff Osienya Jul 23, 2020 IndustryAs USA states continue to authorize sports betting, more bettors are leaving the unregulated markets to spend their money on legal sports betting platforms. Player expenditure on legal markets is up by 12%.A new research study published by the American Gaming Association (AGA) shows that sports bettors in the USA are embracing legal platforms. From the published report, the AGA uncovered that American bettors in legal sports betting states spent 25% less money in 2019 on illegal sports betting platforms compared to 2018. On the flip side, 12% more money was spent on legal online and mobile betting platforms in the same legal sports betting states.
The AGA survey was subcontracted to Heart + Mind Strategies LLC, a renowned branding and marketing firm with a reputation for science-based research that uncovers how people think and make decisions across different aspects that affect their lives. The survey was conducted from December 2019 to January 2020 and the respondents comprised 3,451 Americans of at least 21 years of age, across different demographics.
What is Making American Bettors Switch to Regulated Markets?
Based on the data that was collected by Heart + Mind Strategies, the most critical factors that turned American bettors towards the legal market was the guarantee of bets being paid out, according to 25% of the respondents. Besides, 20% of the interviewees disclosed that they went for legal options as a result of awareness while 19% chose the regulated markets purely because they wanted to use a legal site.
Bill Miller, the current AGA President released a statement following the publication of the report, indicating that the Association understands how much Americans like betting on sports. He added that the findings of the research prove that bettors are willing to migrate to the ‘protections of the legal market’ as long as regulated alternatives with mobile options and competitive odds are on the table.
The research further disclosed that an overwhelming majority of bettors (74% of the respondents) confirmed that it was important for them to stick to betting on legal platforms, even though 52% of sports bettors still wagered in the black-market last year.
The Black-market is Taking Advantage of Ill-Informed Players
One of the most eye-opening discoveries that were made from this study was that confusion about the legality of online operators was one of the biggest drivers of illegal sports betting. A shocking 55% of bettors who wagered on illegal sites did so believing that they were placing wagers on a legal platform.
Adding on to that subject, Miller said this confusion was worsened by the COVID-19 induced sports shutdown earlier in the year. Given that there were no sports to wager on, unregulated online bookies were offering odds on a host of absurd betting options such as shark migration and weather patterns and even “whether your friends’ marriage will survive the pandemic” He, however, disclosed that the AGA is keen on sensitizing customers on how they can bet legally, and the risks of getting involved in the unregulated market, particularly since the NBA and MLB are poised to make a comeback this July.
In a bid to educate customers of the sports betting industry, the AGA already has an interactive map of sports betting that thoroughly outlines legal online and retail sports betting platforms in states where the activity is regulated. On top of that, the AGA has joined forces with state and federal law enforcement bodies to develop a collective understanding of the black-market by reaching out to the media and publishers to ensure that their information outlets don’t promote the unregulated sports betting market.
American Sports Betting Market Outlook
USA states are steadily seriously mulling over on the legalization of retail and interactive sports betting. The recently updated sports betting guidelines rolled out by the AGA inspire policymakers to create more favorable regulatory frameworks that focus on consumer protection while fostering strict oversight in a competitive environment that brings more convenience to customers.
So far, AGA’s reports indicate that over 18 states in the USA, including Washington, D.C. currently have a regulated market for betting on sports, and in the next few months, four more states will be launching legal sports betting. Were it not for the COVID-19 shutdowns that left the industry in ruins for over 3 full months, 2020 would have been a big year for the regulated markets. Between January and February, before sports betting was brought to a standstill, $3.5 billion had been spent by bettors in legal platforms, nearly double the $1.9 billion that had been wagered over the first two months of 2019.
Right now, 22.4 million more Americans within the legal sports betting age (over 21 years) now have access to regulated sports betting markets than before the Coronavirus crisis. The District of Columbia, Colorado, Montana, Michigan, and Illinois all unveiled their legal sports betting markets since Mid-march when mandatory lockdowns were enforced across the USA. Furthermore, over $22 billion has been spent on wagers in legal sports betting states since the SCOTUS repealed the PASPA, with the state and local governments raking in over $198 million in tax revenue.
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