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How the Legalisation of US Sports Betting Could Affect Online Gambling

2018 was a landmark year for the gambling industry in the US. On June 14th Phil Murphy, Governor of New Jersey, placed the first legal bet in his state. It was the end of a long, hard fought battle to legalise sports betting in the Garden State – a battle that had, in due course, overturned legislation preventing states deciding on whether to legalise sports betting for themselves.

Previously, the Professional and Amateur Sports Protection Act (PASPA) had prohibited states (with the exception of Nevada) from determining their own sports gambling laws. In 2012, however, New Jersey began the process that would see the Supreme Court reforming PASPA last year.

“The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the constitution. PASPA is not,” Justice Samuel Alito wrote for the court.

The decision opened up the very real possibility for national online sports betting, which could pave the way for huge developments for gambling in general.

Giving sports fans the ability to make data-informed bets

“It brings a multibillion dollar industry out of the shadows and into the sunlight, where its integrity can be guaranteed and consumers can be better protected,” Ted Leonsis, who owns the NBA’s Washington Wizards, the WNBA’s Washington Mystics and the NHL’s Washington Capitals wrote in a blog post. “I think that the increased transparency that will accompany more legalized betting around the country will only further protect against potential corruption,” he added.

Proponents of online gambling argue that as new generations of sports fans continue to embrace the second screens they carry in their pockets, it isn’t hard to imagine them using their devices to analyse data, place bets and communicate with each other in real time as games progress.

Advocates note that data analysis has always been the lifeblood of sports fandom, and with ever more information about player movements, biometrics and detailed opponent history, it’s a logical next step to enable fans to place bets based on that data. It will bring fans closer to the game, intensifying the action with the increase in personal stakes, they argue.

Beyond the fans, professional sports teams are also likely to benefit. Famed investor and Dallas Mavericks owner Mark Cuban even went so far as to say that franchise owners saw their investments double overnight with the change to the law.

The NBA has been swift to embrace the new changes. “We’re going to have better results in a regulated market than an unregulated market,” said Scott Kaufman-Ross, vice president and head of fantasy and gaming for the NBA. The upshot is a deal with Sportradar and Genius Sports to distribute NBA betting data to sports gambling providers in the U.S., just one of many such deals that will see sports brands, media outlets and platform holders such as Google and Facebook benefit from the new regulations.

Britain: a case study for potential benefits

The UK provides a compelling case study for the benefits that legalised sports betting can bring. It’s a much smaller market than the US with a tighter selection of popular sports, but it still had a total gross gambling yield of $18.19 billion in 2017 – the equivalent of £208.50 for every one of the country’s citizens.

The online sports betting market is thought to be worth around £650 million and saw a compounding annual growth rate from 2009–12 of approximately 7%. Gross profits are taxed at 15%, with taxes on online casinos set to increase to 21%. That’s a significant boom to Treasury coffers – and the government can reinvest this cash to maintain hospital, schools and transport.

Online gambling has driven this growth. It now accounts for £4.5 billion annually – making it the largest single gambling sector in terms of revenue produced. And it’s clear to see the reasons why. Attracted by the option of playing their favourite casino games and slots from the comfort of their own home, players have headed to virtual operators in their droves. With a range of exciting games that can be played anytime, anywhere and on any device, here’s an example of a leading online casino in the UK.

Ripple effects of the PASPA ruling

Many expect that the legalisation of sports betting in the US will have a worldwide impact, particularly in Asian markets. “This decision is going to have ramifications around the world,” David Leppo, CEO of FootballBet.com and BetMex.net, said. “If sports betting in the U.S. is legalized, others will fall in line.”

It’s expected that legalised sports betting, mostly done online, will have a knock on effect domestically, too. It’s likely to lead to the legalisation of other forms of online gambling – something some jurisdictions are already exploring. Know Your Customer provisions and other safeguards created for sports betting designed to prevent money laundering and tackle problem gambling could be rolled out to other forms of online play, and the increased tax revenue is likely to prove extremely tempting for government on both state and federal levels.

Illegal sports betting is estimated to be worth $150 billion on the black market. A 2017 gaming industry study estimated that offshore bookmakers are already making $2.5 billion to $3 billion from Americans betting illegally. That same report said that somewhere in the region of 12–15 million people in the U.S. are currently active illegal bettors, and that doesn’t even account for ‘casual’ or ‘social’ sports fans having a flutter on their favourite team.

The potential tax revenues for sports betting alone are huge, never mind the streams that could be opened up by legalising other forms of online gambling. An Oxford Economics report commissioned by the American Gaming Association, published in 2017, said that sports betting could contribute $11.6 billion to $14.2 billion to US gross domestic product annually, depending on the specifics of which states adopt it and what tax rates they use.

Furthermore, that same Oxford Economics report found that legal sports betting would create between 125,000 and 152,000 jobs, paying between $6 billion and $7.5 billion in total wages. So if Trump’s so in favour of jobs for Americans, this looks like a golden opportunity.

Research firm Eilers & Krejcik Gaming LLC estimates that online gambling could account for $9 billion of sports betting revenue thanks to the ease of access to mobile applications, and it’s not hard to imagine that growth spilling over to other forms of online gambling too, should expectations of further gambling liberalisation be met.

The new regulations could open up more interesting forms of sports betting than those currently provided in Nevada, too.

In the UK, many sports books let you create your own prop bets, focusing on a single aspect of a game and giving you personalized odds. If you want to bet on whether Harry Kane will score the next goal in a game, for example, a bookie will let you do so.

Summary

The exact fallout of recent changes to US sports betting regulations are difficult to predict, but it’s clear that sports fans will have new opportunities to engage with their sports, professional leagues and franchises will have new markets open to them and tax revenues will increase – providing a win-win situation for everyone. For now, all eyes are on the dozen states who’ve applied to have their own gambling laws reviewed in a bid to enjoy the same freedoms afforded to New Jersey. The likes of Oklahoma, South Carolina and Kentucky are all hoping to authorise sports betting – and there’s every chance that this trickle of interest will lead to a sea change.

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Finance News Personal Finance

Analyse Your Spending to Make Great Savings in 2019

With Christmas well and truly behind us, the first thing on sensible minds going into what promises to be a grimly uncertain 2019 will be their finances. We always end up spending more than we meant to towards the end of the year, so the beginning of the year is all about making up the difference by cutting corners. Making savings doesn’t need to feel like pulling teeth though and you don’t need to deny yourself many pleasures and conveniences in order to be more financially responsible. A good start is to make sure you’re keeping track of your spending patterns.

Metres

Many of us have a tendency to lose track of how much energy we’re using, particularly in January when it’s so tempting to throw caution to the wind and turn the heating up to counteract the Winter chill. Smart metres can not only be controlled remotely via an app but will give you a more thorough and detailed analysis of your energy expenditure. You can even get one fitting for gas and one for electric, so you’ll know not only when to dial the heating down a few notches, but when to start curtailing those late-night Netflix binge sessions too.

Apps

There are a number of apps (many of them free to use) that exist specifically to help you keep track of your expenses. Ranging from simple software that allows you to input your expenses, to apps that link with your bank account so you can’t cheat it! There is also a rise in mobile-only banks currently making waves in the UK, with Monzo currently leading the charge. Monzo became Britain’s best-rated lender last year, so it’s obviously far more than just a fad and these banks are far better placed to help you keep track of your finances.

Cards

The rise in popularity of contactless credit and debit cards might have made a few nervous spenders feel like they could let themselves get carried away without feeling like they’ve spent a penny, they are actually wonderful for keeping track of your spending. With cash payments, you’ll need to make a manual note that you’ve made a transaction, whereas using a card, you’ll have an automatic, electronic record of every purchase and every paycheque. Of course, a fair amount of self-restraint is required, but mercifully contactless payments are capped at £30, which will stop you from making any wildly expensive compulsive purchases.

Loans

Particularly with January 31st looming and tax bills needing to be paid, short-term personal loans can be a viable solution if your spending has managed to get out of hand and you’re in need of a quick cash injection to tide you over. Likely Loans is one of the few lenders that won’t charge you any hidden fees and offers a very reasonable APR.

Notes

It might sound old-fashioned, but if all else fails, keeping a financial notebook can be a more hands-on way of keeping on top of things. This approach, however, requires a fair amount of discipline.

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Finance News Personal Finance

Business Tech News That Happened This Week and How Do They Affect Your Business

Technology in the hands of businessmen

We’ve written this article to give you two major changes in technology that happened recently. You’re also going to find out how will they affect your business, if, at all.

McAfee – the Internet of Things comes with 74% malware

The December threats report shows that the digital culprit makes right now 480 new dangers, the Internet of Things comes with 73% of malware. The digital currency that was mining malware made up about 71%, in spite of the fact that the estimations of many cryptographic forms of money were declined. What’s more, McAfee reports showing that cybercriminals have better approaches to avoiding law authorization.

How’s that helpful?

The fame for monetary standards has started to advance, and the Internet of Things rises every day..of course, so does the malware that’s related to it. The innovation is ought to include machine-learning security programs that can deal with these changes, preparing you for a decent online reinforcement app, that can re-establish information if it’s contaminated.

Facebook – “association” attached to Bitcoin

Facebook came to one conclusion: there are many clients that make counterfeit records with their profile pictures, and that also make the most out of bitcoin mining company, Bitmain. These frauds make untrue records and they remark on original strings from Facebook, promoting a type of “association” that is attached to Bitcoin, in trying to make clients use digital money.

How’s that helpful?

People will try to take your cash by using exchange demands. The most recent way to so it is Facebook. You need to make sure you’re careful, as your business takes its first steps in the computerized money universe.

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Finance News

Why One of Trump’s Tax Reforms is Causing an Increase in Divorce in the U.S.

Often, it’s hard to separate fact and fiction when appraising Donald Trump’s statements and core policies. After all, we’re talking about the single most polarising leader in the western world, and a man who’s policies are often viewed through a partisan and distorting lens.

This is especially true with Trump’s tax reforms, which either liberate low and middle-earners in the U.S. or provide further tax breaks for wealthy individuals and corporations in the States depending on who you speak to.

Interestingly, one of these reforms is driving an increase in the rate of divorce in the country as 2019 approaches. We’ll explore this below while asking how this trend will play out in the future.

Breaking down the Basics – What are the Details of the Reform?

On January 1st, 2019, one of Trump’s more obscure tax reforms will come into play, as divorcees will effectively begin to fund tax cuts for corporate America under the terms of brand new legislation.

More specifically, from January 1st alimony will no longer be tax-deductible by the spouse making individual payments. At the same time, the recipient of this income will no longer have to declare these payments and taxable income, creating mixed fortunes that are sure to polarise separated couples even more.

This new reform will dramatically reduce the amount of cash available for couples who are parting ways, with taxes effectively rising significantly for the spouse who’ll be required to make alimony payments.

However, those likely to receive payments may well see something of a windfall in the New Year, as their own taxable income is reduced considerably.

Why is this Triggering an Increase in the Number of Divorces?

While we’re not suggesting that spouses are now looking to seek a divorce in order to profit, there’s certainly a drive among couples already engaged in proceedings to push through their plans and conclude deals before the New Year.

After all, once the tax deduction has gone there’ll be less money available for the whole family unit, and various divorce lawyers in the States have seen the demand for their time soar in recent weeks.

Families are also keen to avoid the uncertainty created by the new legislation, particularly those who are unsure about the new reform and its precise impact on family funds.

Going forward, the first quarter of 2019 is likely to see chaos in legal offices throughout the states. After all, the highest earners in a relationship (who’ll be required to pay alimony to their spouse) may refuse to meet the new requirements, while judges may also be forced to rule on certain cases in order to clarify the new rules and set precedents.

This will definitely be a fascinating space to watch in the near-term, and it’s yet another unpredictable chapter in Trump’s premiership!

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Finance News Personal Finance

Affordable Investment Opportunities are Encouraging More People to Invest in Buy to Let

The UK property market has been undergoing large shifts, due to many factors like changes in legislature, stamp duty and new technology. Property investment is no longer for just the extremely wealthy and affordable property investment opportunities are attracting a new kind of investor.

Affordable Investments

Property is considered a safe bet by many UK investors, who typically enjoy having brick and mortar assets. Recently there has been an increase in affordable properties that are perfect for buy to let property investment. For new investors, affordable investment opportunities provided by firms like RW Invest are perfect for an entry into the world of property investment. From student properties in bustling city locations to off-plan investments in brand new developments, there are an increasing number of affordable options. For less than £60,000, investors can purchase sought after buy to let properties in a range of UK cities. Many of these cities in the North are benefitting from large investments in infrastructure like the Northern Powerhouse Project. These Northern properties have incredibly affordable house prices, less than half of the UK average, allowing people to invest with less initial capital.

Easier Access to Property Investments

The online property market has provided access to UK properties for potential investors from a wide range of backgrounds. Investors from abroad are snapping up opportunities to invest in the growing UK property sector, with affordable opportunities a great way to start in the market. The internet has provided access to show apartments for off-plan projects, online 360 tours of apartments and round the clock access to property information.

An Increasing Range of Properties

Another factor has been an increase in the variety of properties available. Smaller properties like studios and apartments allow investors to get hold of valuable city centre property at a lower price. Properties such as new build apartments, renovated studios and one-bedroom flats are easier to access by these new potential investors.  Larger investors have been using a multi property strategy, investing in different types of properties, including apartments and studio accommodation. The diverse range of properties available for buy to let investment caters to a range of different tenants too. From young professionals to recent graduates, the demand for city centre rental property is huge.

Increasing Value

With lower initial costs, investors have seen huge returns on investment. Apartments have been one area that has experienced a huge rise in value in the past five years with increases of £1251 per month adding up to a huge £75,074.  Property continues to be a sound investment, and an increasing number of people are looking to enter the market with an affordable property that provides monthly rental income, as well as the potential to grow in value.

Though it has had its ups and downs, the UK property market continues to attract new investors. There is an increasing demand for rental properties and potential returns of 7-8% a year. Compared to other investments, the UK property market has remained on a steady course, with growth focussed around UK city centres.

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