How European bookmakers are exterminating smart bettors in the US market

This trend started a long time ago, but since 2018 it has acquired the scale of a forest fire. The impetus was the Supreme court’s repeal of the 1992 law on restrictions and regulation of betting activities. New Jersey, where Spanky lived all his life, was a pioneer of legalization.

In less than a year, the state has experienced a gold rush: new Jersey now has 10 physical and 14 online bookmakers that have already accepted bets worth about $ 1.5 billion.

Another 7 States followed the example of new Jersey, 29 are considering the bill. Global corporations are taking over the betting industry in the United States, killing the art of betting and professional players.

According to a study by Eiler & Krejcik Gaming, players are divided into 7 categories: casual dabblers (casual players), status seekers (people who want to impress others and appear cooler than they are), super fans (sports fans), action chasers (bonus hunters), would-be pros (potential pros), high rollers (play at very high limits) and sharps (professionals who live off bets).

Spanky went through all 7 and settled on the last one — sharps (smart players). He is known by all the major bookmakers, Spanky’s bets are often cut, and he is not allowed to go to some offices.

In less than a year since legalization in new Jersey, European bookmakers have offered turnkey services to local racetracks and casinos: software, mobile betting, player profiling, and risk management. Casinos and racetracks do not refuse.

According to the CEO of Pinnacle, the US is seen as a country of opportunity, the European market has reached saturation point. But players, especially pros, are wary of European intervention.

During a discussion at the MIT conference, William Hill spokeswoman Sharon Otterman answered a question about bans of plus customers: “we have a business. We are not a charity.”

Much easier to do business on poprah and office clerks. This is not just William Hill’s fault. DraftKings, which recently switched from fantasy sports to betting, follows the same principles.

You don’t even need to bet 20 thousand dollars. “I was just watching baseball and betting on runs in the next inning: Yes or no,” says the new Jersey Pro player. “By mid-September, I noticed that I couldn’t bet more than $ 100. The NFL limit was later reduced to $ 30. $ 30? Seriously? DraftKings brag about what turnovers go through them, and is my 50 bucks too much?”

Limiting the maximum is akin to a death sentence for professional players. “Like any Pro, my margin is minimal,” says bill Krakomberger, Creator of the KrackWins app and star of the Action documentary series. “For every 100 units, we are very happy to return 102 or 101 points. For bids to make sense, I have to put amounts with five or six zeros.”

How the legalization of online betting will affect sports in the United States

Online betting is becoming more and more part of the life of modern America. In 2018 alone, more than ten States legalized online betting. This is important news not only for those who like to bet, but also for the sports industry.

You can place sports bets legally here.
The NBA, for example, has already expressed a desire to cooperate with betting companies and receive financial benefits from this. The Buffalo Wild Wings chain of establishments (including sports bars) also plans to integrate betting in its restaurants across the country. Legalization will affect sports in the United States in one way or another.

Economic benefits

On the one hand, the NBA’s demand for bookmakers to share their profits looks absolutely strange. But in fact, this is not surprising. Most leagues and teams earn millions from advertising betting companies if betting is legalized in the country.

Look at the English Premier League – the most commercially successful project in football. Half of the 20 teams in the Premier League have sponsorship agreements with betting companies. And on average, such a contract brings the club 10 million euros a year. The same “West ham “earns $ 13 million through a contract with BetWay,” Everton ” – 12 million from SportPesa,” Burnley ” – 3 million under a contract with Dafabet.

American sports teams are sure to get even more after sports betting is finally legalized. US residents spend more than $ 150 billion annually betting in illegal companies. So the potential of the market is very large. Bookmakers will also pay millions for teams to place their ads on their uniforms.

The development of young talents
Bookmakers ‘ partnership with sports leagues is not just about money. Some large betting companies organize and sponsor competitions among young talents and schoolchildren. They are also integrated into the student sports system, helping its development.

The United States still cannot benefit from potential sponsorship of youth sports by bookmakers. Although the American branch of William Hill has stated its desire to promote youth competitions in the state of new Jersey.

Bookmakers will also help make sports more accessible to children. Unlike other countries, in the United States, almost all youth sports organizations are private. Because of this, even sports such as hockey and football are not available to poor children.

In the past, bookmakers provided equipment and scholarships for talented children and young men who lacked funding. This would help raise the overall level of talent in various sports.

More earnings for sports media
The sporting media is seriously falling in recent years in America. And legalizing online betting in the US could serve as a lifeline for them. More people will watch games and competitions, and along with this, the advertising appeal will grow.

Small sites, projects of private entrepreneurs or bloggers will also benefit greatly, as they will also be able to advertise bookmakers on their portal pages and make marketing integrations.

In the UK, where online betting is legal, media networks earn more than three million dollars from advertising betting companies. Note that the British market is much smaller than the American one. And the real profits of media in the United States from bettig advertising will probably be 10-20 times more.

State revenues will also grow strongly. So in new Jersey, they plan to immediately receive $ 13 million in taxes. So far, most States have not legalized betting and are losing millions of dollars due to this, as the population continues to place bets in illegal betting shops.

Gambling in the United States

Gambling was banned in the United States in 2006. Congress supported the initiative to stop useless spending by citizens who could lose all their property via the Internet.

The capital of America in the field of gambling – Las Vegas, this turn of events is quite satisfied, as it causes increased interest in their activities.

Online casinos are banned in America
The fierce fight against virtual gambling has already turned into a war. Not only the creators of gaming sites get punished, but also those who use them.

So, the organizer of a virtual casino can get up to 5 years in prison and a fine of$2500. Players receive a similar fine, and six months in prison can be added to it.

Most European countries have the same opinion about gambling.

Therefore, they are banned in many places, but after conducting a survey, it turned out that Americans quite often gamble and put money in bookmakers. They also want to have fun and tickle their nerves.

American bookmaker Pickswise, part of the Spotlight Sports Group holding, has announced a new supercomputer. It will run on sports betting predictions, launching to coincide with the start of the new National football League season.

The supercomputer is able to create pre-game probabilities using advanced machine learning techniques. In other words, the technology will simulate a certain sporting event more than 10 thousand times and give the maximum possible accuracy of coefficients. In this case, the probability will be dynamic, since the machine analyzes the latest news about teams and even the weather forecast before the match in real time and independently changes the bookmaker quotes.

“For us, the best bet is the one that shows the difference between our forecasts and the prevailing betting markets. The ability to consistently identify these anomalies will give our clients a chance to become a successful distance bettor. This is a very attractive offer for all avid bettors,” said Spotlight Sports Group managing Director Harry von Behr.

Bookmakers from the United States

American bookmakers: from the origins to the present day
The first offices began offering to make bets using phones or “booths” in the 50-60 years of the last century. But strong activity began to be observed in the late 20th century. From 1994 to 1998, the number of operating offices increased several times. A world-famous gaming company such as Sportingbet was particularly Active in the United States, opening several offices here.

Americans liked to get their adrenaline pumping with sports betting, and money flowed into their pockets and bookmakers ‘ accounts. But in 2006, the first changes were introduced in the US legislation in the framework of gambling activities. Sportingbet immediately figured out the situation and within a few years sold all of its playgrounds on the territory of this country.

Strengths and weaknesses of American firms
Bookmakers in the United States have a number of distinctive features that are unique to them. All this is due to the conditions of their activities and the preferences of American bettors, which are the main focus:no Russian version of the site;
there are very few methods of conducting money transactions that are popular in Europe, and large commissions are provided for withdrawing funds;
small withdrawal limits;
the line displays up to 15 sports, some of which can only be represented by one American League: for example, basketball can be represented by the NBA, hockey by the NHL, and so on.
the list of sports confrontations is extremely poor, often only the main outcomes are used;the coefficients are too low, the transition to decimal coefficients is not always provided, and it is difficult to play according to the American coef;
the live section is frankly weak, and events are rarely offered;
there are no Russian-speaking employees in the support service;
the bonus program if available will apply to users from North America;
the emphasis is more on casino and poker than on sports betting.
If all this information is summarized, it turns out that American operators rely only on users from the United States and even Canada, almost completely ignoring the guys from other regions.

Now, knowing all the characteristics, it is obvious that offices from North America will not attract much attention from users from Europe and the former Soviet Union: the game conditions are too low.

But bettors from the USA are satisfied with everything. They like to bet more before the start of a sports match, which is why the Live section in local offices is so poorly developed, and their interest is mainly limited to popular North American leagues and top European Championships and tournaments.

Regulation of the online gambling industry in the United States

The United States is home to one of the most popular casinos in the world – Las Vegas. Millions of tourists and locals come to this place every year to try their luck and potentially take a big win with them. Movies, TV shows, books, and more are based on the experience of gambling that takes place in Las Vegas.

Due to the popularity and culture of gambling, it is surprising that online gaming is still illegal in most States across the US. But this didn’t stop users from finding loopholes and ways to circumvent legal aspects. Thousands of Americans play online casinos every day, despite the legal consequences.Most online casino enjoyed by citizens of the United States (where online games are still illegal), is located offshore and beyond the jurisdiction of the United States.

Unfortunately, this means that players are not protected by the us government in any way, and if theft or fraud occurs, nothing can be done in the legal sense. But all is not lost. Although gambling is a fairly slow-growing business in the United States, the authorities regularly make changes at the legal level. Let’s take a closer look at the attitude of States to online gambling.

Why is online gambling illegal in the United States?
When online casinos appeared in the US back in the 1990s, the market was very loyal. Many people made bets freely. This was a legitimate practice. However, in 2006, the secure transactions act was signed into law, which completely changed the future of online gambling in the United States. Before the Law took effect, any US citizen had the right to use credit and debit cards to pay for services provided by operators.

A consequence of the adoption of this law was the blocking of payments from Bank cards on playgrounds. Without the use of third-party payment systems, such as e-wallets, the transfer of cash to the gaming account of a gambling establishment would be almost impossible.

What is the UIGEA?
Another factor that played a big role in the abolition of online gambling was the adoption Of the law on combating illegal online gambling (UIGEA). It was also adopted in 2006, and is attached to the above-mentioned Law. UIGEA played a crucial role in banning banks from sending or receiving money through online casino sites.

“Reckless passion” UN-American. People are hungry for games

Americans are no less adventurous than, say, the British. After all, a large part of their population is made up of descendants of colonists from great Britain. Las Vegas, this Mecca of excitement, only confirms the above. Ordinary Americans go to Nevada as if on vacation, and realizing that they will leave a lot of money there. The huge gambling market is languishing under a bushel.

Bookmakers are prohibited
In the United States, sports are considered nothing less than a national treasure. The leading players of national Championships are known all over the world. The NHL is the best hockey League in the world, the NBA is head and shoulders above any basketball draw in the world, Boxing in the United States is a cult sport, fighters from all over the world strive for America’s rings, American football and baseball, little understood in Europe, have a huge impact on the life of an ordinary American.

But it is forbidden to bet on the outcome of all these, certainly fascinating, events. Moreover, bookmakers are even fighting specially organized agencies for this purpose. But the state does not manage to keep the emotional impulses of its citizens to the full.

Why is it forbidden
America of the 30s is still alive in memory, when the mafia controlled the underground sweepstakes, which affected the purity of sports, primarily Boxing. The big bosses of American sports leagues don’t want the stain of suspicion to fall on the reputation of their offspring. They are afraid that a great interest in sports will grow into a great interest in betting, hence from the vacuum of today there will be a lot of money bettors, some of which can go to the organization of match-fixing. No one wants to criminalize sport, but the UK has done it.

Meanwhile, the Americans are ready to play
A country with 330 million inhabitants can bring untold revenues to its budget. Gambling Brits spend almost $ 18 billion a year on games, but the UK population is more than five times smaller. Up to a hundred billion dollars could be spent by players in the States, without releasing this raging flow abroad and into the economic shadow.

The future of sports betting in the United States

Previously, one of the main arguments against legalizing sports betting was that players and officials would be tempted to rig games. But this began to look controversial after the boom in illegal gambling through online bookmakers. Many sports organizations and law enforcement agencies argue that the best way to combat match — fixing is to bring sports betting out of the shadows. Whatever the risks, the potential tax gain from legalization may be too attractive to miss. By legalizing betting in 2018, the US launched the largest experiment in the history of sports gambling.

Situation
Sports betting is legal from Australia to Western Europe. But they thrive even in places where gambling is banned. Information the Swiss company Sportradar AG monitors the markets for fraudulent activity. They estimate the annual volume of bets at 1.5 trillion euros (1.7 trillion dollars). And most of them pass through unregulated markets. In the United States, where a 1992 law banned betting everywhere except in Nevada, annual illegal sports betting is estimated at $ 50-150 billion. However, the situation changed after the us Supreme court overturned the 1992 law, exempting new Jersey from the ban on sports gambling and other States followed suit. 13 States currently have legal sports betting and this number is growing.

Prehistory
The Internet has made betting modern. Players can now bet at home or on the road using their smartphone. You can bet on almost any professional sport, not only on winners and losers, but also on small details: the number of fouls or the winner of the third set in a tennis match. This allows players to earn on their Providence, but also expands the opportunities for bribery.

Match-fixing scandals have stirred up not only football, but also cricket, tennis, and even sumo. It’s been a century since eight Chicago white SOx players were banned from baseball for life after the 1919 World series. To counter such threats, sports organizations such as the international Olympic Committee and the NBA have partnered with data collection companies to track suspicious bets.

Arguments
The strongest argument in favor of legalization is that sports betting continues regardless of whether the law allows it, so why not regulate and tax it? This gives players greater confidence that they will not be deceived, and brings money to the state budget, which is still going into the pockets of illegal bookmakers or even organized crime. Opponents say the benefits don’t justify the social costs of gambling, from gambling addictions to falling into debt. according to research, four out of ten Australians who bet on sports have a gambling problem. Skeptics argue that bookmakers should be subject to the same advertising restrictions as tobacco and alcohol to protect vulnerable young people.

Athletes and scientists also warn of a growing gambling culture around sports, in which the focus is on betting rather than the pleasure or frustration of sporting events themselves. Fatalists are convinced that betting cholera can no longer be stopped, it turns all matches into agreements and poses the same threat to the purity of sports as doping.

Development of gambling in the United States

Legend has it that gambling existed in America before Columbus discovered it. The main gaming center at that time was not Las Vegas, but New Orleans. In New Orleans, in the early 18th century, there were all sorts of coffee shops and taverns where visitors played card games. It is said that in the 18th century, gambling in some States was so popular that well-behaved Americans asked the government to issue a law prohibiting gambling, as it is sinful and corrupting the soul. But the fight against the desire of Americans to take risks and play did not bring any results, despite all the prohibitions.

In 1823, the United States passed a law regulating the operation of gambling houses, then the authorities considered legal only those casinos that operate under a license that cost as much as $ 5,000. But, despite the huge price of the license (at that time, 5000 USD is a very large amount), casinos in the United States opened one after another. The most gambling city at that time was New Orleans, where players, mostly military personnel, played cards and dice around the clock. Not all gambling establishments were honest and calm, and often the players found out the relationship, which ended in fights and stabbings. It is for this reason that gambling was re-banned in New Orleans.

The second gambling city in the 18th century in the United States was Chicago. Gamblers came to Chicago to play poker for money, but often in this popular card game lost and won not only a substantial amount of money, but also entire estates and mansions. Many American gamblers really lived by gambling, the game brought them money and was the main meaning of their lives.

At the end of the 18th century, an important event took place in the United States that left a huge mark on the history of gambling – a young man from San Francisco independently assembled the first slot machine. Now America can be proud of giving the world such a popular game as slot machines. Americans simply love slots and consider them their national game.

In Las Vegas, gambling became legal only in 1931. Many gambling houses in Las Vegas were owned by the mafia and controlled by gangsters. Currently, gambling is officially banned in many US States. You can only legally play in American casinos in Las Vegas, new Jersey, Reno, and Indian casinos. Because of the bans, many players are forced to play in online casinos, especially since they feature all the favorite gambling entertainment of Americans:
online slot machines, virtual poker, American roulette, video poker and other card and table games.

American-style betting: how sports betting is legalized in the United States

What has changed since the ban was lifted?
Now that the Federal ban has been lifted, each state must determine the legal status of sports betting on its own. According to available information, 14 States will legalize sports betting within the next two years. Another 18 are preparing to legalize betting activities in the next 3-4 years. The situation in the remaining States remains uncertain. As a rule, local legislation that prohibits their activities in a particular territory puts a stick in the wheels of bookmakers.

Native Americans also began to fight for their share of the new market. Not so long ago, one of the “tribal” casinos in new Mexico announced the beginning of betting activities. According to state law, gambling and sports betting are prohibited, but this measure does not apply to Indian reservations. This precedent may give the native American population a good reason to look for loopholes in regional legislation.

Where can I already bet on sports?
In addition to Nevada, sports betting has long been available in Delaware, Oregon, and Montana. However, in the form of a lottery. Mississippi and West Virginia foresaw the cancellation of PASPA in advance, allowing betting activities on their territory before the Supreme court’s decision. The same applies to Pennsylvania, but a license worth $10 million and a tax of 36% (4 times more than in neighboring new Jersey) do not attract businesses.

Rhode island in June this year announced that the launch of a regulated sports betting market in the state will take place in October, but later the deadline was moved to November.

New Jersey won the most from the repeal of the Bradley Law. It was the local authorities who were the most ardent opponents of PASPA, eventually achieving its final abolition. Atlantic city is the second gaming center in the United States after Las Vegas, so the reasons for new Jersey’s dissatisfaction with the monopoly granted to Nevada are quite clear. Now the betting market is developing dynamically in the state, the lion’s share of which is accounted for by playing online. For example, the volume of bets made in September was 184 million dollars, of which 104 million were on bets made on the Internet.

Online betting, by the way, is not available anywhere except in new Jersey: even in Nevada, only land-based operators operate. The total volume of bets in turn has almost doubled compared to 96 million dollars in August. In July, this amount was $ 41 million. Growth is expected in October, especially if you take into account the start of the largest North American leagues.

Gambling and casinos in the United States

Gambling in the United States is legal, but with a huge number of possible “buts” and restrictions. Each state has the right to pass its own laws on gambling zones and the types of gambling allowed in them. Gambling includes everything that has anything to do with the possibility of winning: from playing “bingo” for money, lotteries and poker tournaments to roulette and sports betting. The most serious restrictions are imposed on commercial casinos.

Commercial casinos are allowed (with various types of restrictions) in the following States: Colorado, Delaware, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Dakota, Washington, Oregon, California, West Virginia.

And only two States allow casinos throughout the territory: Nevada and Louisiana.

There are about 450 commercial casinos in the United States.

In another 30 States, there are several hundred casinos or places for various types of gambling on native American territories, that is, on Indian lands. Games there are regulated by the National Indian gaming Commission (The National Indian Gaming Commission) and coordinated with the Federal Commission.

Today, the largest gaming centers (with commercial casinos):

Las Vegas, Nevada
Atlantic City, New Jersey
Casinos on the water (not on land: on boats, pontoons) are legalized in Louisiana and Illinois.
The rules and nuances of the game are governed by Federal laws, state laws, the Federal gaming Commission and the rules of the casino itself. Therefore, the rules may differ significantly in different casinos, even in the same city.

You can only start playing at the age of 21. In casinos, people younger than this age are usually not allowed at all. In some casinos (if it is located in the lobby of the hotel, for example, and you can pass through the casino from one building to another), those who are not yet 21 years old can walk along specially designated routes, but they can not stop or stay along the way.

Usually, you can’t take photos in a casino. In some areas, you can’t even carry a mobile phone.

Different casinos have different dress codes. In the hall with slot machines, you can sit in shorts, and in the halls with high stakes, where a separate invitation may be required, there is usually a strict dress code, close to black-tie.

Maximum bets in a casino are a matter for the casino itself. In Nevada, for example, there are no legal restrictions on the size of bids. The bigger and richer the casino, the higher the stakes it can afford. In some casinos, bets go up to $50,000 or even higher (unverified information). Usually in a high-Limit room, bids from $100 – $10,000 are accepted. A notable story is that of a businessman and billionaire from Omaha, Terence Watanabe, who lost about $ 100 million in a Las Vegas casino one night in 2007. And this is only possible at very high rates.

Serious players who make big bets and play regularly, hotels (at casinos) are happy to provide the highest level of rooms for free. Most casinos provide free alcoholic beverages for players. The quality and quantity also depends on the bids. But the casino has the right to refuse a player if it suspects him of a gambling addict with a strong addiction or considers his behavior inappropriate. In this case, the person is simply escorted out of the door and may not be allowed in again. This is exactly what happened to that Terence Watanabe as a result.

There are no restrictions on winnings. In Las Vegas, there are legends about million-dollar winnings and six-digit jackpots above slot machines confirm this possibility. For example, in 2013, a software engineer from Los Angeles (name not disclosed) won the Megabucks jackpot- $ 39 million-at the Excalibur casino.