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New Challenges Arise with the Expansion of Sports Betting

The imminent expansion of sports betting across the United States has forced local governments to modify their industry perspective drastically. In some cases, state governments have welcomed the adoption of sports betting, while others have chosen to remain on the conservative end of the argument.

No matter which end of the spectrum states fall into, sports betting continues to have multiple considerations when being approached at the state level. Whether the focus of gaming providers is narrowed only to Online Casinos or a sports betting platform, the gaming industry is beginning to encounter a new wave of challenges. 

Debate Over Higher Taxes

Many states have encountered proposals from the private sector to expand online gaming operations in a perfect opportunity to make a quick gain. But, this gain has translated to the collection of gaming taxes. 

As a result, some states have seen taxes remain relatively low, ranging around 15%. Yet, some of the recent states that have allowed online betting are now seeing tax rates to gaming providers surpassing 20%. 

Approval has come as a form of privilege to which all gaming providers must act accordingly. This means that there is no real opportunity to challenge these conditions. However, debates have arisen about how fair the large amounts gaming industry providers are paying to be legal within specific markets really are. 

With betting gaining popularity, some experts predict that some states might reconsider tax regulations. However, experts believe that overall, the tax rates for the gaming industry will remain relatively unchanged. This is another challenge gaming providers will need to deal with as betting dynamics continue to gain significant popularity. 

Local Betting Limitations

Another point of discussion that has been brought up is the limitations on specific betting dynamics, with fans questioning why they cannot bet on local college sports teams. Similar considerations have been brought up for online casino bettors when addressing certain games that state governments have limited to brick-and-mortar casinos. These two points will continue to heat the debate. 

Betting limitations have forced some users to travel to neighboring states to place their wagers. Others have opted for offshore online casinos and sportsbooks. The customers will continue to set the course for the market. Experts think most states that have already approved sports betting will become more flexible in the near future.   


Microbetting refers to the practice of betting on in-game events. Microbets could include whether a player in baseball will hit a home run in his current game or whether a player in basketball will score her next free throw. 

It can be difficult to manage, as there is an advanced queue system that lines up new bets. However, those who can successfully build this format will win many casual customers.

Adapting to Market Needs

With more states approving additional licensing to new participants in the gaming industry, the market seems to be reaching its saturation point. The first question many experts have asked is whether this first scenario is a possibility. 

To some, there is such a thing as too many competitors in the industry. However, that’s just the nature of adequately structured capitalist principles. The determining factor regarding which companies will continue to lead the market will be up to the fans and bettors to decide. 

With the constant influx of new sports betting sites in the U.S., users have now been given the option of selecting which provider they think is best from a growing number of choices. The list will not be limited to two or three but could range up to approximately ten service providers in any given state.   

The case for each one is determined explicitly by the different factors that drove sports betting into the state under analysis. However, experts have also wondered if these companies have genuinely considered the user’s needs before entering into a new market. 

Some believe that the market is following its natural course and that people will define what they want along the way. Yet, some experts think the gaming endeavor is leaving many important industry aspects aside. So the debate is set to continue for some time to come.  


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