SUPER BOWL SUNDAY OR SUPER SPORTS BETTING SUNDAY? THE IMPACT, THE CONCERNS, AND THE FINANCIAL IMPLICATIONS OF LEGALIZING SPORTS BETTING
Ellelyshia Ardo
Today, it seems like you cannot leave your house without seeing or hearing about sports betting, whether through advertisements or others discussing the practice. While lawful forms of gambling have existed in the United States since 1964,[1] sports betting appears to be a different breed of gambling. There is no longer a need to go to a physical location to place a bet because the casino is in your pocket.[2] Whether this is for better or for worse is up for debate. The average American household spends $1,100 a year on sports betting.[3] As a result, states that legalized the practice saw $1.8 billion in tax revenue.[4] The lucrative nature of the sports betting industry has undeniably made it attractive to many states. However, this level of spending has become a cause of concern for those worried about problem gambling and the financial health of those who partake. Around 5 million Americans suffer from problem gambling;[5] as a result, the financial benefits for the states must be weighed against the potential harms for their citizens. To combat some of these risks, states have been using some of the tax revenue to support counseling for those suffering from problem gambling.[6] Without the proper guardrails in place, it is possible that the negatives will eventually outweigh the positives.
In May 2018, the Supreme Court in Murphy v. National Collegiate Athletic Association[7] struck down the federal law that prohibited sports betting.[8] The Court found that the Professional and Amateur Sports Protection Act was unconstitutional because the act violated the anticommandeering doctrine by issuing “a direct command to the states.”[9] As a result, states became free to regulate the practice. Since this ruling, 39 states and the District of Columbia have legalized the practice, and four additional states have proposed legislation to allow the practice.[10] In 2023 alone, a record $10.92 billion in revenue was recorded for the sports betting industry.[11] Preliminary estimates show that revenue increased by 29% to $14.2 billion in 2024.[12]
Super Bowl LIX marked the seventh Super Bowl where Americans could legally place bets on the Big Game in 38 states and the District of Columbia.[13] This year, it is expected that $1.39 billion in legal bets were placed, up from 2024.[14] Potentially, the number of Americans who placed a wager may have also increased from 68% in 2024.[15] While bettors placed some of the more traditional bets, bettors also placed bets on things like the outcome of the coin toss, tails;[16] what song will be played first at halftime, “GNX (Teaser);”[17] and what color of Gatorade will be dumped on the winning coach, yellow/green/lime.[18] It appears that bets could be placed on pretty much anything remotely related to the Super Bowl. One of the most popular bets placed was the Eagles moneyline, where one BetMGM Nevada customer placed a $880,000 bet.[19] Americans have clearly shown their support for the legalization of sports betting through their wallets.
As the years continue to pass, based on historical data,[20] the popularity and dollar amount spent on sports betting will likely only continue to increase. The impact of sports betting on tax revenue is undeniable, but that is not to say that there was no cost associated with this outcome. States must perform a balancing act to ensure that their citizens are protected from predatory practices; are receiving the necessary help for problem gambling; and are educated on the potential financial risks. Whether or not you choose to partake in this popular pastime, there is no escaping the industry because of its advertising power and the general popularity of the practice with Americans.
[1] Dylan Scott, How America Became a Nation of Gamblers, Vox (Sept. 7, 2023, 6:00 AM), https://www.vox.com/policy/2023/9/7/23835684/nfl-kickoff-2023-opening-day-sports-gambling-betting-odds-fantasy-football.
[2] Id.
[3] Jonathan Ponciano, Are Americans Betting Their Future on Sports? Uncover the Surprising Stats, Investopedia (Jan. 10, 2025), https://www.investopedia.com/americans-sports-betting-losing-8768618.
[4] Id.
[5] Gambling, Rutgers, https://www.addiction.rutgers.edu/about-addiction/facts-and-figures/gambling/ (last visited Feb. 8, 2025).
[6] Ponciano, supra note 3.
[7] 584 U.S. 453.
[8] Adam Liptak & Kevin Draper, Supreme Court Ruling Favors Sports Betting, N.Y. Times (May 14, 2018), https://www.nytimes.com/2018/05/14/us/politics/supreme-court-sports-betting-new-jersey.html.
[9] Murphy, 548 U.S. at 480.
[10] Interactive U.S. Map: Sports Betting, American Gaming Assoc., https://www.americangaming.org/research/state-gaming-map/ (last visited Feb. 8, 2025).
[11] Doug Greenberg, Sports Betting Industry Posts Record $11B in 2023 Revenue, ESPN (Feb. 20, 2024, 1:53 PM), https://www.espn.com/espn/betting/story/_/id/39563784/sports-betting-industry-posts-record-11b-2023-revenue.
[12] Ponciano, supra note 3.
[13] American Gaming Assoc., supra note 10; Megan Cerullo, $6 Billion to be Bet on Super Bowl LII – Not All of It on the Game Itself, CBS News (Feb. 1, 2019, 10:49 AM), https://www.cbsnews.com/news/betting-on-the-super-bowl-1-in-10-americans-placing-bets-on-super-bowl-liii/.
[14] Chandelis Duster, 2 Reasons Why a Record $1.39B Is Expected To Be Bet on the Super Bowl, NPR (Feb. 8, 2025, 6:00 AM), https://www.npr.org/2025/02/08/nx-s1-5290099/one-billion-super-bowl-lix-bets. In 2024, $1.25 billion was wagered. Id.
[15] Scooby Axson, American Expected to Legally Wager $1.39 Billion on Super Bowl 59, USA Today (Feb. 4, 2025, 11:02 AM), https://www.usatoday.com/story/sports/nfl/super-bowl/2025/02/04/super-bowl-59-record-legal-bets/78209119007/.
[16] Barry Werner, Who Won the Super Bowl 59 Coin Toss, Yahoo Sports (Feb. 9, 2025, 6:42 PM), https://sports.yahoo.com/won-super-bowl-59-coin-234229047.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAIslrkFpyvOVGM_1Vxa-UQNtI5OruF56w_GRy67uhL3dmdzKFlBLR9f4_ILnc4w-7btLDqD6633urmPumi7z_oj_D49oE50E2tI8jkO9H_OVcEsBjCOKetziXK_VaFuBdTsEeGv6321_NEgoyPq-MA0JAXATNWHl5-3RinRpTwca.
[17] Anna Kaplan, Kendrick Lamar’s 2025 Super Bowl Halftime Show Setlist, Today (Feb. 9, 2025, 8:45 PM), https://www.today.com/popculture/music/kendrick-lamar-super-bowl-halftime-setlist-2025-rcna191405.
[18] Patrick Everson, Five Popular Bets for Super Bowl 2025, Fox Sports (Feb. 6, 2025, 3:47 PM), https://www.foxsports.com/stories/nfl/nfl-super-bowl-lix-odds-5-popular-bets-big-game; Patrick Cwiklinski, The 3 Easiest Super Bowl 59 Bets Anyone Can Make, Sports Betting Dime (Feb. 9, 2025, 4:51 PM), https://www.sportsbettingdime.com/guides/how-to/easy-super-bowl-bets/; Marc Raimondi, Super Bowl Gatorade Shower: History, Disputes and Color, ESPN (Feb. 10, 2025, 12:00 AM), https://www.espn.com/nfl/story/_/id/43693870/nfl-super-bowl-chiefs-eagles-gatorade-coach-prop-bets.
[19] Patrick Everson, Super Bowl 2025 Big Bets Report: Eagles Moneyline Taking Massive Wagers, Fox Sports (Feb. 8, 2025, 5:16 PM), https://www.foxsports.com/stories/nfl/super-bowl-2025-big-bets-report-eagles-moneyline-taking-massive-wagers.
[20] AGA Commercial Gaming Revenue Tracker, American Gaming Assoc. (Jan. 16, 2024), https://www.americangaming.org/resources/aga-commercial-gaming-revenue-tracker/.