An Assessment of the Fourteen Beneficiaries of Legalized Sports Betting and the Potential Benefits that They Derive

Abstract

The 2018 ruling by the United States Supreme Court essentially legalized sports betting across the nation. Prior to that ruling, sports books were restricted by virtue of the Professional and Amateur Sports Protection Act (PASPA). But with a landmark 6-3 decision, the opportunity door for sports betting has been opened in all 50 states and the District of Columbia. This research focuses on two considerations regarding the opening of that door. Who are the potential beneficiaries, and what benefits might those beneficiaries derive? A detailed examination of the newly emerging literature identified 14 potential beneficiaries that fall within four broad categories: sports entities, traditional sources of revenue, the gaming industry, and other nonsports entities. Among these beneficiaries are the teams, organizations, fans, sponsors, bettors, the media, and society-in-general. The majority of the benefits revolve around financial considerations, but it is not always as straight-forward as cash. So, while the NBA is benefitting from a cash flow from its casino sponsor, society-in-general may benefit from enriched educational resources and a better infrastructure. This article further delineates the potential benefits for each of the 14 beneficiaries that have been identified.