Sports betting is far from the occasional hobby it once was and now stands as one of the most impactful economic spheres globally. The niche boasts a market value of around $131.1 billion and is estimated to hit $180 billion by 2026. Regions like the UK, Australia, Canada, and Macau have established industries that generate billions in revenue, and many more countries are following suit, considering the venture’s potential.
One such jurisdiction is the United States, where the federal government recently passed a law allowing each state the freedom to run its own legalized sports industry. States like New Jersey, Delaware, West Virginia, and Mississippi have already embraced the niche, and most others will likely follow suit.
While the issue of government regulation has only started taking off recently, sports betting has always been popular with the masses. Citizens in countries with restrictions often resort to illegal offshore sources, which presents many issues for individuals and society at large. Governments are stepping in to make the environment more friendly, and here is how they are doing it.
Legalizing Sports Betting
Online gambling involves people trusting their money with faceless third parties. Countries that legalize the practice ensure that players know that the websites they deposit into are reliable to offer paid-for services. Most jurisdictions with legal gambling have institutions in place that test and monitor sportsbooks to ensure they maintain fair and safe standards. The most prominent ones include:
- The UK Gambling Commission
- Curacao eGaming
- Malta Gaming Authority
- Romania Gaming Authority
- Alderney Gaming Control Commission
- Gibraltar Gambling Commission
- AAMS Italy
Casinos have to jump through several hoops to prove that they meet minimum standards before being opened to the public. Casinos with proper licensing often include the information at the bottom of their landing page or the “terms and conditions” section. For instance, ggbet-online.net online casino indicates that it is licensed by Curacao eGaming and holds a permit from the Master license holder Antillephone. That way, players can rest assured that its services, including the GGBet 50 free spins awarded to new players, abide by fair terms.
Allowing Independent Testing
Countries with established sports industries also open their doors to independent testing firms to ascertain the safety of their bookmakers. With more and more sportsbooks doubling in casino services, these bodies step in to ensure the algorithm generators used are not unfairly set against gamblers’ favour. The most looked into components are the RNGs, used to generate random results in games like slots, roulette, blackjack, baccarat, and poker. These bodies verify the RNG:
- Statistical randomness
- Seeding, reseeding, and cycling
- Usage of random figures, such as shuffling and scaling
- Unpredictability and non-repeatability
A properly functioning RNG guarantees players confidence in the gaming system and other casino services, ensuring against unjustified gambler complaints. The best RNG testing firms include eCOGRA, iTech Labs, GLI, and TST. Like gambling licenses, their seals of approval are often found at the bottom of bookmaker landing pages.
Inspecting the Integrity of Events
Having sports open to manipulation like fixed matches beats the purpose of regulating how people bet on them. Most governments evade this issue by creating bodies to oversee how events pan out, and all laws are followed to level the playing field. In most cases, governments join international sporting bodies and agencies that follow similar guidelines. The most popular ones are:
- World Anti-Doping Agency (WADA) – this independent international agency runs activities like education, development, and scientific research of anti-doping capacities. It harmonizes the drugs and equipment used in all sports and countries.
- Federation Internationale de Football Association (FIFA) – this body is governed by Swiss law and has 209 global members. It functions with legislative, executive, and administrative bodies for the constant improvement of football.
- International Olympic Committee (IOC) – this body collaborates with multiple parties of the Olympic family, including International Sports Federations, athletes, sponsors, broadcast partners, and organizing
- International Tennis Federation (ITF) – together with six regional associations, IFT administers and regulates tennis through 200 affiliated national associations. This body sets the rules of tennis, such as court and equipment specifications.
- International Swimming Federation (FINA) – this agency oversees aquatic sports like swimming, synchronized swimming, water polo, diving, and open water swimming.
- International Basketball Federation – this independent association is formed by 213 national basketball federations and is the sole authority in the sport recognized by the IOC.
Generating Tax Revenue
Tax is a crucial part of supporting a civilised society. Since sports sectors generate billions, governments often target them for tax contributions. These funds support services outside the pastime like medical research, social security, social healthcare, and others. The industry’s success is a key ingredient in maintaining the social contract between people and the economy.
Implementing Gambling Addiction-Limiting Measures
Gambling addiction is a vice that seems to be spreading as fast as the sports betting industry, wreaking physical, mental, and financial havoc for those affected. Through regulation, governments implement measures that reduce the risk of problem gambling and make it less of a risk. For instance, in the United Kingdom, it is forbidden to use credit cards to finance sports bets to avoid falling into debt.
Overview
Regulating bookmakers has limitless benefits from state and consumer standpoints. Countries with legal and regulated industries stand testament to their positive economic and social impacts, and many more are bound to follow suit.