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IS SPORTS BETTING LEGAL?

BILLIONS OF DOLLARS IN REVENUE AWAIT

By: John Bailey October 20, 2018

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Is Sports Betting legal?

Legality changes state-by-state. In 1992, Congress officially cracked down on sports wagering, and from that moment on no governmental entity (besides the state of Nevada of course) could legally, "sponsor, operate, advertise, promote, license, or authorize," sports-related betting of any kind. All of the conditions were outlined in a piece of legislation titled the Professional and Amateur Sports Protection Act (PASPA), an act to keep gamblers at bay and sports games bribe-free.

On May 14th, 2018 the Supreme Court lifted this ban and returned sovereignty on the issue back to the States, dismantling the Las Vegas dictatorship and opening the door for new revenue streams for both states and casinos.

Individual states now have the power to condone sports wagering, and there is no doubt that in the years to come we will see more and more states opening their barriers to sports betting establishments.

Here's where we're going if you want to jump ahead:

So…is Sports Betting Legal Now?

In 1992, Congress officially cracked down on sports wagering, and from that moment on no governmental entity (besides the state of Nevada of course) could legally, "sponsor, operate, advertise, promote, license, or authorize," sports-related betting of any kind.

All of the conditions were outlined in a piece of legislation titled the Professional and Amateur Sports Protection Act (PASPA), an act to keep gamblers at bay and sports games bribe-free. It was a widely accepted thought that sports wagering threatened the integrity of the game by encouraging players and coaches to sway the game in one direction in exchange for a payout. Even the NFL testified to this point during the ruling.

The gambling industry has always been met with legal resistance. Even online sports betting has been on the receiving-end of a legislative tirade, but eventually legalities and wagering reach a stalemate and compromise to coexist.

justice law graphic

For over twenty years, Nevada held absolute control over the sports betting landscape, a monopoly set into motion by PASPA and perpetuated by Las Vegas glamour. Sports fans and gambling enthusiasts have come from far and wide to test their luck on March Madness, Super Bowl, and World Series outcomes.

Believe it or not, PASPA did not put an end to spots gambling, but rather forced it underground; the money spent illegally on sports wagering in 2017 exceeded $100 billion.

The continuance of underground sports wagering falsified the grounds PASPA was enacted on, rebranding the PASPA a violation of state sovereignty and dismantling its image as a protection measure. This is why New Jersey sought to overturn the law prohibiting state legalization, and as of May 2018, succeeded.

On May 14th, 2018 the Supreme Court lifted this ban and returned sovereignty on the issue back to the States, dismantling the Las Vegas dictatorship and opening the door for new revenue streams for both states and casinos.

Securing Your Plot of Land in the Sports Betting Landscape

Individual states now have the power to condone sports wagering, and there is no doubt that in the years to come we will see more and more states opening their barriers to sports betting establishments. Online betting platforms will face considerable competition from in-person establishments looking to mine their piece of this new gold source. Land-based casinos leveraging sport-betting software technologies will have the advantage over operations without scalable solutions.

Scalability will move to the forefront of development in lieu of the recent Supreme Court ruling. All sports betting software moving forward will need to accommodate a growing player-base and maintain the same usability standards across all channels—mobile, in-house, and desktop.

Increasing engagement points will be the key to opening the most promising revenue stream. Players in the gambling industry must proactively secure their software solutions for when these state-by-state decisions are finalized. New Jersey, the driving force behind the recent headway, plans to legalize sports wagering as soon as June 30th, 2018.

Here are some things to keep in mind on the development front…

Security and Fraud Control

Where there is money at stake, there is opportunity for fraud and security vulnerabilities. However, it is possible to build a sports betting platform that minimizes both. The system should be intuitive enough to recognize abnormalities and raise awareness to these issues before they snowball into something greater.

For players wagering with payment forms other than cash, payment information is stored in a database temporarily unless indicated otherwise by the player (creating an online profile for instance). The sports betting software engineers must prioritize data protection, programming a comprehensive security barrier resistant to unwanted corruption.

User Engagement Points

In a business largely driven by impulsivity, maximizing engagement points is paramount to increasing cash flow. This means, when a player decides he or she wants to wager, it is in the best interest of the business to make that wager as accessible as possible.

customer retention graphic with magnet

Accessibility comes from forming a multi-channel system, and streamlining those channels to create a seamless user experience. In other words, a gambler should have more or less the same experience whether they're engaging through an in-house, mobile, or desktop sports betting platform.

To reach a point of unification, business owners must collaborate with a developer skilled and experienced in UI/UX design. In implementing a robust UI/UX, users and operators alike will find the software easy to use, jam-packed with interactive extras and account modules to form a positive user experience. In terms of the recent news in sports betting, a customizable UX will differentiate wagering platforms from one another, allowing the influx of new participants to find their preferred options.

Scalability

Just think. That billion dollar underground market is about to surface and funnel into casinos, bars, and sports stadiums across America, but there is no telling how large the market will truly be. There are many that withheld participation due to legality issues, and this recent Supreme Court decision has left the doors wide open for these people.

Even if your sports betting software is fraud resistant and accessible from different channels, it will fail to adapt to the changing consumer climate if it is not scalable. Sports betting software must be able to accommodate an evolving player community by maintaining its agility and flexibility under changing conditions. Scalability stems from a surplus of data storage bandwidth and a strong code base you can scale up or down easily without any major development.

Request a Consult, Build a Sustainable Sports Betting Platform

Chetu house over 1,500 developer in-house to bring our clients' visions from concept to code. In terms of sports better software, Chetu leverages industry-specific experience in the gaming domain. Combining 18 years of experience, we strive to provide top of the line, white label solutions to our sports betting clients. Chetu's custom sports betting software solutions support the following bets and more:

We support multi-channel sports betting system through fully-interactive programming techniques capable of sustaining a large player community, equipped with player portals and payment gateway integrations. In the very near future, sports betting will make its legal debut across the US and falling behind this adoption wave sacrifices a powerful, billion-dollar revenue stream. Request a consult today, to engineer the sports betting platform that will make your business billions.

Disclaimer:

Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

- See more at: www.chetu.com/blogs

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