Sports betting will keep booming in 2022, but some see risks in growth

 However, sports betting will continue to boom in 2022. But some see potential risks in this growth.

The year 2022 is set to be another record year for sports betting, as many states are eager to get into the game. There has been a steady trickle in the number of states that have allowed gambling operators like MGM and Caesars to enter their territories.

Over 112 million Americans, more than a quarter of the population, can legally place sports wagers without ever leaving their home. To place an in person bet, another 50 million can simply hop in the car.

However, these are early days for sports gambling in the United States. Many industry stakeholders believe that 2022 will be another boom year. Legalization is moving forward in many of the states with the highest populations.

New York has launched mobile betting this week. In addition to the 29 states where legal sports betting exists, three states including Ohio will allow bettors to begin placing bets in the coming months. While Florida is working to resolve legal issues, Massachusetts, North Carolina and Georgia are expected to be more aggressive in their efforts to make sports betting legal. California voters may finally have to decide the matter by the end.

The growth has been huge, but the states are significant swings in the size of the legal U.S. Market," said Christopher Halpin (NFL's executive vice president, chief strategy and growth officer).

The Professional and Amateur Sports Protection Act of 1992, which made sports betting illegal anywhere but Nevada, became vulnerable and leagues began to prepare. Not long ago, the United States' sports leagues were unyieldingly resistant to sports gambling. They see it as a commercial boon, and a way for them to connect with their fans, particularly young ones. Every week, teams and leagues announce new business partnerships. They also continue to look for ways to make game-day experiences more appealing to bettors.

More than $87 billion has been legally wagered on sports since the Supreme Court struck down the law, according to industry site LegalSportsReport.com, and some 40 million Americans were expected to place bets on the NFL regular season that ended last weekend. Although many believed the PASPA repeal would allow existing gamblers to place legal bets, early returns show that new bettors are being attracted to make wagers. All gamblers have access to new and easy-to-access betting options.

Nearly every state continues year-to–year growth. New Jersey was the only state to see an increase in sports wagers, with $1.26 Billion in November alone. This is more that 25% higher than the previous year. The National Council on Problem Gambling released in September a study showing that Americans bet on sports increased by 30% within 18 months. This is an increase from 15.3 million bettors.

As operators rush to open up shops in every new state, they fear that the patchwork nature and speed of state-by state laws is failing to provide a safety net.

Keith Whyte, executive Director of the NCPG, stated, "We're still at the first innings of a lot this stuff," adding that it is too early to tell the extent and severity of gambling addiction. But the NCPG's research indicates that problem gambling has doubled in 2018 and is highly concentrated online among young male sports fans.

"The signs we're witnessing are very troubling," said he.

Executives of sports leagues said they knew that they would be required to influence the legal market even before the ban was lifted on sports betting. They would be required to create legislation, partner with betting sites and encourage all stakeholders to adhere to certain safeguards.