$4.2 billion will be bet on Super Bowl 50, but $4.1 billion of it will be wagered thru bookies and offshore sites
Americans are expected to wager $4.2 billion on Super Bowl 50, according to the American Gaming Association. The amount wagered would be a massive boon for Las Vegas sportsbook, but the AGA estimates that 97% of the money wagered will be through illegal bookmakers and online sportsbooks. The American Gaming Association make estimates each year to underscore the amount of tax revenues lost, due to a 46-state federal ban on sports betting.
The American Gaming Association is a Washington DC-based lobbying group which calls for the U.S. Congress to end longstanding bans on gambling. The AGA argues that Americans have the right to use their money as they see fit. In their mind, gambling laws are an attempt to impose morality on unwilling citizens who are spending their hard-earned money as they see fit. Bans on online gambling are seen as particularly offensive, because it is an invasion of a person’s decisions in the privacy of their own home.
Betting on Super Bowl 50
This year’s matchup is an intriguing one for the betting public. Super Bowl 50 involves an intriguing match-up between the favored Carolina Panthers and the underdog Denver Broncos. The Broncos have a cast of players much better well-known than the Panthers, because they are led by future Hall of Fame quarterback Peyton Manning and a veteran cast of stars.
Denver made the Super Bowl two years ago, so players like Demaryius Thomas and Von Miller are familiar to long time NFL fans. Key contributors like Demarcus Ware, Emmanuel Sanders, and T.J. Ward were stars on other NFL teams before they came to Denver.
The 15-1 Carolina Panthers
The Panthers were installed as 5.5-point favorites by the world’s largest sportsbook, the Westgate SuperBook. They are led by Cam Newton, a multi-talented quarterback who is controversial with many NFL fans. Newton was a controversial figure when he led the Auburn Tigers to a BCS National Championship 5 years ago. Because he celebrates a little too long for some tastes, he is seen as a showboat.
Whether you agree or not, everyone sees the 6’5″, 260-pound passer as a world class talent. Not only can he make all the throws and make them accurately, but he challenges defenses with the skills of a running back. With Newton, a stout traditional running attack, and a turnover-producing defense, the Panthers cruised to 15-1 on the regular season. If they win the Super Bowl, they will be only the third team to go 18-1 and win the Super Bowl. No team has ever gone 19-0.
Expected 8% Increase in Wagering
The dynamic between the well-known underdog and the upstart favorite appears to drive betting action. The AGA said the amount wagered is an 8% increase over last year’s Super Bowl between the New England Patriots and Seattle Seahawks. At the team, the Patriots were going for their 4th Super Bowl win during the tenure of Bill Belichick and Tom Brady, while the Seahawks were trying to repeat as Super Bowl champions. Such an even match-up produced a record amount of turnover at the Las Vegas sportsbooks.
Last year’s action did not produce the kind of revenues the Vegas Strip casinos would have hoped. With a record $116 million in wagers, the books collected only $3.2 million. That translated to a 2.8% hold, which was the lowest total since 2011. Despite the low hold percentage — which would have flipped had the Seahawks scored at the end — the Vegas bookmakers usually get it right. Since 2005, the sportsbooks have made money on the Super Bowl every year except one: 2008, when the New York Giants won in a huge upset of the New England Patriots.
Losing 97% of Gaming Revenues
AGA president Geoff Freeman says casinos and state government could be collecting nearly 100 times as much money, if they legalized betting. Letting 97% of the revenue go to bookies not only makes organized crime wealthy, but it also robs governments of billions of dollars in tax revenues each year.
Freeman said, “As Americans celebrate a milestone Super Bowl, they’ll also bet a record amount. Just like football, sports betting has never been more popular than it is today. The casino gaming industry is leading the conversation around a new approach to sports betting that enhances consumer protections, strengthens the integrity of games and recognizes fans’ desire for greater engagement with sports.”
Nearly $150 Billion Wagered Each Year
Geoff Freeman estimates that U.S. gamblers wagered $149 billion on sports in 2015, which was up from a $145 billion total in 2014. If those numbers are anywhere close to correct, US states are losing taxes from an industry whose revenues would dwarf the GDP of some nation’s worldwide.
With so much money going to offshore sports betting websites and local bookies, the usual protections and resources which would exist for regulated gambling operations simply are not there. Problem gamblers thus conduct their business in a shadow economy, where no help exists.
Super Bowl 50 Naming
To avoid confusion, the National Football League is marketing Super Bowl 50 with a number and not the usual Roman numeral. Seeing the phrase “Super Bowl L”, with “L” as the Roman numeral for 50, is apparently seen as potentially too confusing.
