Each sports betting software provider will develop their own live/in-play betting apps for Android and IOS.
Many questions remain unanswered about the US sports betting industry in the wake of the Supreme Court’s repeal of the PASPA federal ban on sportsbooks in 46 states. One of the overlooked questions is what kind of impact sports betting apps and in/play betting will have in the US gaming market.
In-play betting is a form of rapid-fire sports betting which takes place with a mobile smartphone or tablet computer. Sports bettors go to a mobile sportsbook or apps store and download a live betting app.
This gives the sports bettor access to many in-game betting propositions. Instead of betting on whether the Yankees will beat the Red Sox, you might be on who has the first home run of the game — or who has the next home run. Players can bet on strikeouts, walks, or how long a pitcher lasts. The sheer number of in-play betting options seem endless.
The advantages for bookmakers are obvious. Instead of a gambler making one or two wagers per game on the winner and over/under, the gambler can make dozens of bets per game.
Live In-Play Betting Apps
Sports betting apps have had a huge impact in Europe and Australia. They became a major political issue in Australian sports betting, because bookmaker sites exploited a loophole in IGA 2001 to get around a ban on online sports betting. (The loophole: Onlines ports bets were banned, but players could call in sports bets over the phone lines.)
Eventually, Australia’s parliament banned live in-play betting. The impact in the UK and continental Europe also has been great, though the gaming habits of sports bettors in those countries were just different enough from Aussie punting habits that no bans were required. With that in mind, the impact on the American sports betting is hard to predict.
US Mobile Sports Betting
Before discussing the potential impact of smartphone sports betting apps, it needs to be said that the Supreme Court decision did not create a new online sports betting industry in America. Even if US states legalize sportsbooks for land-based casinos, those casinos cannot launch online and mobile bookmaker sites — at least yet.
The 1961 Wire Act bans interstate sports betting over the telephone wires. The 2006 UIGEA bans interstate online sports betting over the Internet. Technically, the UIGEA bans (for the Internet) any activities which were banned for telephone lines under the Wire Act. The key word from the Wire Act is “interstate”.
Intrastate Sports Betting Allowed, Interstate Banned
That means US states can legalize sports betting sites that cater to bettors inside their state’s boundaries. Nevada will not be able to accept online or mobile sports bettors from 49 other states. The same can be said for New Jersey, Delaware, or any other state that legalizes land-based sportsbooks.
Single-state bookmaker sites has a big implication for any gaming operator which wants to dominate US mobile sports betting. To be legal, in-state sportsbook sites would have to have servers within the state’s boundaries, too.
Expensive Operating Costs for Bookmaker Sites
That means William Hill USA would need to have servers within Nevada, within New Jersey, and within dozens of other states, if it wants to operate legally. That drives up the cost of doing business significantly, because each bookmaker operation would have significant startup and maintenance costs.
One the positive side, William Hill USA and Paddy Power-Betfair are going to be able to invest in a piecemail fashion. H2 Gambling Capital predicted 19 US states would legalize sports betting within the next 5 years. That is going to happen on 19 different time tables, though.
Sports Betting Legislation by US State
State legislatures have a lot to do besides gambling. Many do not meet but 100 days every 2 years. Clashing interests could slow down the process in many states which seem naturals for sports betting. Michigan has shown signs that the two dozen tribal casinos might slow-walk sports betting, fearing the 3 commercial casinos in Detroit could get a head-start.
If Michigan could be a headache, then California could be a nightmare. A casual summary of the past 10 years of failed California online poker legislation shows how fraught gaming debates are in the Golden State. While no single operator like PokerStars would dominate California sports betting, finding consensus among the 170+ gaming operators is always difficult.
US Smartphone Sports Betting Apps
Given the patchwork of state sports betting laws which is expected to happen, you can expect some US states to ban live/in-play betting and sports betting apps. Others will embrace the smartphone sports gambling apps, because it will help their operators max out their revenues — and help states collect max revenues.
Readers should watch for a couple of things. One, see how New Jersey handles smartphone betting apps. Certain state regulations become a template for other state lawmakers to follow. Since New Jersey has the most advanced online gambling industry and it also successfully won the challenge to the sports betting ban, New Jersey’s Division of Gaming Enforcement is going to be seen as an authority on sports betting. How its laws evolve could have a tremendous impact nationwide.
Two, see if the live/in-play betting apps become a media focus. In Australia, sportsbook operators launched adds for smartphone betting apps on TV and the Internet, so they were a visible and notable element of Aussie sports betting. That led to reports about rampant use of smartphone betting apps in Aboriginal communities and a string of horror stories. If bookmaker operators overplay their hand and sensationalistic reports appear, then US mobile sports betting could be dominated by the need to ban live in/play betting apps.
By design, political and legal power is dispersed in the United States. That means one model will not dominant the US gaming industry, as it might in the United Kingdom. That can be a good thing and a bad thing, but in this case, it means that some Americans will get a chance to use legal Android and iPhone sports betting apps.
