SPORTS BETTING LEGALIZATION IN THE US

The sports betting landscape in the United States is changing rapidly. For decades, the federal government prohibited the practice and therefore it was only legal in a few states. In 2018, however, the US Supreme Court reversed this ban, paving the way for individual states to legalize sportsbooks.

As of 2022, more than half of the country has already initiated the process of legalizing sports betting.

Many regulated states limit in-game advertising to just advertising for casinos and prohibit advertisements during televised sporting events until after 9 p.m., depending on the type of game being aired (or earlier). Some states require websites to obtain a license before operating within their jurisdiction; others rely on federal regulations instead.

What changed in 2018?

In 2018, the US Supreme Court reversed the federal ban on sports betting, thus allowing individual states to legalize sportsbooks.

On May 14, 2018, the US Supreme Court ruled that individual states may decide whether or not to legalize sports betting. The ruling overturned a 1992 federal law that banned sports betting except in four states.

This decision opened the door for states to regulate sports betting themselves and could be considered a major win for those who want to see legal sportsbooks opened across the country.

What happened next?

In 2019, 10 states had legalized sports betting and another 13 had their legislation pending.

The first states to legalize sports betting were New Jersey, Mississippi and West Virginia and the ones coming right after included Pennsylvania, Texas, Oklahoma, Wisconsin and Rhode Island. In addition to the above states, Puerto Rico had also passed legislation that would allow for regulated online gaming.

How about now?

As of November 2022, sports betting in the US has expanded to over 30 states and counting. A state-by-state breakdown is available for information in this CBS Sports article. If you are curious about legal details, Legal Sports Report has tracked quite thoroughly the bills on file and the new laws on the books.

Several states have turned to online and now allow remote registration. This means anyone can sign up from their couch and immediately start betting with several of the top online sportsbook options in the country. All of this is possible thanks to these states opening up partnerships between the states' casinos and experienced operators to join up to create a top-notch sports betting product. And of course, that also leads us to advertising.

Advertising limitations

In-game advertising and advertising for casinos

Many regulated states limit in-game advertising to just advertising for casinos. There are two main reasons for this:

• Players may be more likely to make impulsive bets when they see a brand or product they like, and

• Regulators want to protect their states from being overwhelmed with sports betting if it becomes legalized nationwide.

TV advertising only after 9 p.m. but digital is here to stay

In the United States, several states have legalized different forms of sports betting. For example, New Jersey has legalized both casinos and online gambling.

However, there is still one major restriction on advertising during televised sporting events: it cannot appear until after 9 p.m., depending on the state and the type of game being aired. This means that you will not be able to see any commercials featuring people placing bets during your favorite televised sporting events such as football or baseball games.

The States still give companies wide latitude over what they can say in advertisements though - quite a different approach compared to the one towards the tobacco industry for example. For the time being, there seem to be no major advertising rules specific to the sports betting industry at the federal level. Having such limited oversight in terms of ad regulation, digital is here to help anyone who knows how to benefit from it.

License Regime

Many states require operators to obtain a license before operating in the state. In some cases, this requirement only applies to operators of sports betting websites; other states have a similar requirement for players as well. Some states also have additional requirements for operators and players depending on what type of game they're playing or where the player is located.

Sports betting rules are specific to each state's jurisdiction

The laws that govern sports betting in the United States are specific to each individual state's jurisdiction. As of right now, there are no federal laws regarding sports betting, so it's up to each state to decide how they want to regulate it. The laws governing sports betting will change from state to state, and it's important for gamblers who live in states where such changes have taken place (or are taking place) to do their research before placing any bets.

The speed at which these laws are changing varies from one area of the country to another - in some places, there have been recent updates within the past few months. In contrast, other states such as Illinois have had virtually no visible movement since the legalization was passed back in 1992.

To conclude, sports betting is already legal in most US states and continues to expand throughout the country. The market is expected to multiply as more states legalize sportsbooks, which will increase consumer demand for advertising, especially on the digital side.