Legal betting makes sports more fun. But it is a risky business
Legal betting makes sports more fun. But it is a risky business: “Betting makes sports more fun and more engaging, which is what sports leagues want,” an expert says. It is explained why more people are placing their hard-earned cash on who wins games.
But experts alerted that betting can lead to addictive behaviors and significant financial loss.
OPENING UP THE FIELD
Legal sports betting is not something new. In 1992, the Ontario Lottery and Gaming Corporation (OLG) launched Proline allowing people to wager on three to six sporting events at a time.
On August 27, 2021, the Canadian government amended the criminal code related to single-game betting. This amendment paved the way for provinces to start issuing gaming licenses to private companies.
The new iGaming law came into effect on April 4, 2022. Sports betting in Canada exploded with its effect. More than 70 businesses went on to purchase licenses that cost about $15,000.
Ontario became the first province in Canada to legalize this kind of sports betting. More jurisdictions are expected to follow this suit after legalization.
RIDING A MONETARY HIGH
Betting allows governments and private enterprises to make money off consumers. Previously, Canadians who wanted to make in-game bets either did so on the black market through criminal networks or with gaming companies overseas.
According to the Canadian Gaming Association, Canadians bet about $10 billion every year on single sporting games through criminal networks. They spend another $4 billion in the “gray market,” placing bets through offshore sites unregulated.
PARTNERSHIP DEALS
The fans do not find peace with simply watching a game. They desire to be an active participant in the action.
Online betting is trying to change sports themselves. With single-game betting becoming legal in the U.S., leagues, and teams have started forging several partnerships with gaming companies.
These partnerships are presenting huge opportunities for sports teams. They have the option to increase engagement with their audience. The two industries work together in a number of ways. This includes sharing valuable data. The leagues and teams have started to collect these data over the last few years.
COMPETING FOR DOLLARS
There is a massive oversupply of options in betting. This has given rise to intense competition for people’s dollars. This change has made it difficult for companies and their investors to generate any money.
Penn National Gaming Inc., the Wyomissing, Pennsylvania-based company is the owner of Barstool Sportsbook. It bought theScore for $2.4 billion in the month of August 2021. The company saw its stock price drop by nearly 40 percent this year. The company reports that Penn Interactive, its digital sports betting division, is going to lose US$50 million in earnings in 2022 at this rate.
On July 1st, Penn National Gaming Inc. went on to shut down Score Bet’s U.S. sports betting operation. It failed to gain traction south of the border as per experts. It has plans in the process to focus its Barstool brand in the U.S. and theScore Bet in Canada.
REGULATING THE INDUSTRY
A few more mature online gaming markets are trying to reduce the number of marketing companies can do, in part because problem gambling is rising. A 2021 report from YouGov, a London-based market and data analytics firm, reported that gambling addiction rates can develop nine times higher than what the betting industry has stated.
The U.K. reformed its sports betting laws in the year 2005. The country began restricting certain types of marketing. In 2018, a “whistle-to-whistle” advertising ban was put into effect. This ban forced companies to stop advertising during sporting events. On April 5, it prevented companies from bringing in sports personalities, reality TV stars, and social media influencers to sell their wares. This step was taken to stop kids from getting interested in online gaming.
BIG MONEY
There is evidence to suggest that sports betting leads to more addictive casino gaming. Many companies tend to use their sports arms and celebrities like Wayne Gretzky. Wayne Gretzky has been signed in as a brand ambassador for BetMGM. The companies wrap these kinds of steps to encourage people to sign up. They lure the people by putting up $25 credit to use on a virtual slot machine.
“I can tell you anecdotally I have played roulette and blackjack on these apps. And they are live 24 hours, seven days a week,” says Naraine. “You have even got a camera focused in on a live dealer who deals you live cards.”
Read Also:- Canada’s greatest Baseball Players