Moody’s analyses US sports betting market

Economic analyst Moody’s Investors Service says states would not totally benefit from the legal sports betting industry.

US.- The legalisation of sports betting in the United States was a huge step forward for operations at international level, as the new gaming modality received the green light to expand the business in one of the leading markets in the world. However, the international economic analyst Moody’s Investors Service says the move may not generate the expected results.

Moody’s Investors Service provides international financial research on bonds issued by commercial and government entities and released a report last Friday stating that “most U.S. states will get only a minor revenue boost from legalised sports betting even under the most optimistic scenarios,” as published by Reuters.

Since the legalisation, over 18 states are trying to regulate the new market in order to obtain legal profits from sports betting operations. According to the statement, however, “those states are eyeing the estimated US$150 billion of illegal sports wagers annually across the country, an enticing new revenue stream especially for areas hampered by years of slow economic growth,” and added: “But relative to their total budgets, the size of any revenue increase would be puny.”

In New Jersey (the State that took the PASPA case to the Supreme Court) Moody’s says that sports betting would generate a “minimal lift”. However, they assured: “But it should help increase tourism and boost the city’s casino-dominated economy.”

“At the state level, New Jersey will experience only a minor bump in tax revenue from the legal wagering relative to its budget.”