Super Bowl Squares to Orange Jumpsuits
Square Sense
Bust out your posterboard and permanent markers. It’s that time of year when Super Bowl party hosts across the country will be pulling out their rulers and sitting at a kitchen table like a kid doing a science fair project to put together their Super Bowl squares for friends and family.
We all know the drill, but if you’ve been under a rock, here’s a basic overview.
It’s party fun for the big game at its purest. And perhaps sports wagering at its simplest. It’s safe to say, Super Bowl Squares is probably on one end of the ever-expanding sports wagering spectrum.
A 5-Year Flurry
On the opposite end of the spectrum, resides the big business of sports wagering. And what an epic – and cataclysmic – rise it’s been.
In 2024 the global sports betting market was valued at approximately $102.4 billion, with a “B”. For comparison, that is roughly equal to the entire GDP of the nation of Slovakia. And at a CAGR (compound annual growth rate) of 10%, the sports betting market is expected to reach $265.5B by 2034, close to Finland’s entire GDP.
But it wasn’t always that way. Everything changed on May 14, 2018, when the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA), originally enacted in 1992. This ruling sent decisions regarding legality and regulation of sports betting to the states. And jump into the pool they did.
As of September 2024, sports betting is legal in 38 states. Americans legally wagered nearly $120B on sports in 2023, an increase in more than $25B from 2022. And even more revenue piled on in 2024 with numbers projected to be above $130B.
No sporting event is bet on more than, you guessed it, the Super Bowl. In 2024 it was estimated that more than a fourth of the U.S. population, or 85 million people bet on the game. That’s more people wagering than the populations of California, New York, Pennsylvania, and Ohio COMBINED!
Long Gaming
It’s worth noting that Nevada obviously legalized gambling in 1931 long before PASPA was enacted, allowing for it to operate casinos and sportsbooks in the State – and building it as the juggernaut it is today. Similarly, tribal casinos were legalized through Tribal Compacts under the Indian Gaming Regulatory Act of 1988, allowing them to have casinos on tribal lands under agreements (compacts) with state governments.
The other notable long-term sports betting occurs in the horseracing industry under a form of wagering called “pari-mutuel betting,” or essentially pooling bets, which was not impacted by PASPA. We’re not attorneys, so we won’t attempt to get into the legalese on that, but the point is obviously, several forms of gaming existed before the floodgates opened in 2018.
The Age of Online
And naturally, it didn’t take long for sports betting to boom online. As of recent data, approximately 80-85% of legal sports betting in the U.S. is conducted online. A percentage that is bound to increase as more states continue to enter the legalized online sports wagering fray.
What players are dominating the online sports wagering market in the U.S.? You’ve likely been inundated with ads for many of them, including:
- Flutter Entertainment: The owner of FanDuel is the largest online sportsbook operator in the U.S., commanding a significant market share.
- DraftKings: A major player in the online sports betting industry, known for its extensive betting markets and innovative features.
- MGM Resorts: Operates BetMGM, a prominent sportsbook with various partnerships, including with major sports leagues.
- Caesars Entertainment: Runs Caesars Sportsbook, which is widely available across the U.S. and offers a range of betting options.
It’s a game of intense market share capture among several of these major players…which likely means one thing is coming: consolidation. We’ve already seen it in with FanDuel and DraftKings buying up competition. Clearly, there is a line in the sand between companies such as MGM Resorts and Caesars Entertainment when it comes to competition among other business lines (namely hotels/resorts), precluding the likelihood of any sports betting merger, but the regulatory environment and antitrust could be factors for the other market leaders in the future. Remember when Sirius and XM were two separate companies?
Down the Stretch
And horse racing has not been left in the dust. Churchill Downs operates an online betting platform. Off-track betting (OTB), though experiencing a decline in 2024 (lots of plausible causes for that, including the rise of other sports betting options), remains a significant part of the sports betting industry in the U.S., generating approximately $6.4B in revenue of its own in 2024. Off-track betting remains a popular option for horse racing enthusiasts who prefer to place bets without attending the races in person, underscoring its role in the overall horse racing industry.
Have Your Cake and Eat It Too
What’s better than placing an online bet from your phone, or at a casino sportsbook? Why, doing so from the stadium of course. Or at least that’s where the market is heading– albeit behind several of our European counterparts such as the Premier League. Several professional sports venues in the U.S. have integrated onsite sportsbooks with the intention of enhancing the game-day experience for fans. Here are some notable examples:
- Capital One Arena (Washington D.C.) – Home to the Washington Wizards and Capitals, it was the first U.S. arena to open a sportsbook.
- Wrigley Field (Chicago Cubs) – DraftKings Sportsbook opened here in June 2023.
- FedExField (Washington Commanders) – Fanatics Sportsbook opened its first physical location inside an NFL stadium here in January 2023.
- Rocket Mortgage FieldHouse (Cleveland Cavaliers) – Caesars Sportsbook opened in January 2023.
- Audi Field (D.C. United) – FanDuel Sportsbook opened in July 2022.
- Citi Field (New York Mets) – Caesars Sportsbook opened during the 2022 season.
- United Center (Chicago Bulls & Blackhawks) – FanDuel Sportsbook lounge opened in October 2022.
- Chase Field (Arizona Diamondbacks) – Caesars Sportsbook.
- State Farm Stadium (Arizona Cardinals) – BetMGM Sportsbook.
Fantasy [Sports] Island
We see Super Bowl Squares on one side of the sports wagering continuum and perhaps high-dollar, big business, behemoths on the other. But there is a ton of real estate in between. Consider office-favorite fantasy sports.
Words matter when it comes to the classification of what is gambling and what is not. For example, games of “skill” versus “chance” because it is tied into states’ definitions, legality, and, let’s not forget, regulation. Again, I’m no expert on all that, but I am talking all about putting some money in and either losing it, getting the same amount back, or getting more back, regardless of “skill” or “chance”.
Many states classify fantasy sports as “skill”, which is kind of funny to me because the one year I played fantasy football was when it was just becoming a thing and one of my neighbors selected her entire team based upon how the players’ backside looked in the uniform. And she won…a lot. If that’s the definition of “skill” then I might as well throw my hands up!
I do believe fantasy sports are a form of sports betting (per my personal rudimentary and non-legal definition above). Skill or chance to be debated (aren’t we all Monday morning quarterbacks?).
The gist of fantasy sports is that more than 50 million Americans participate in fantasy sports annually (BOOM!). Top sports for fantasy participation? Football, of course. Followed by baseball, then basketball.
The 800-Pound Gorilla
One could obviously write for days hashing the good and the bad, the pros and the cons to sports wagering. On one side you’ve got increased revenue (mo’ money) and increased engagement – real or perceived. And on the other, you have an 800-pound Gorilla.
Anytime more money is involved, you get an increase in temptation. It’s basically a law of human nature. And you know what that means…a rise in compromising the integrity of sport.
Over the years, there has been no shortage of regrettable sports betting-related scandals that have led to fines, disrepute, league expulsion, lifelong bans, and orange jumpsuits. The Black Sox scandal of 1919, Pete Rose, of course, Tim Donaghy, Boston College and Arizona State’s point shaving, and more recently Jontay Porter.
I have followed this stuff loosely over the years, but my ears have perked up to the increase in frequency and complexity of such infractions. Over the last couple of weeks news has come out about an investigation into Terry Rozier, and just today as I write this article, it was announced the MLB fired umpire Pat Hoberg for sports gambling-related reasons. Not only that, but ESPN is reporting the NBA gambling ring has its tentacles in NCAA basketball, too.
Uncanny?
I don’t know much, but I do know when you put more cows in the pasture, you get more manure.
This is huge. And it begs the question, just how pervasive is this issue across sports? Personally, I’d need some serious convincing to believe these are all merely “isolated instances” or “rogue operators.” My elementary hunch is that it is MUCH more pervasive than we think or know…and the flutter of new revelation currently occurring is just the beginning.
Not to mention (but I’m going to) that leagues and teams are now overtly tied to sportsbooks through partnerships ranging from sponsorship and promotional activities to data sharing and licensing. None of this existed 10 years ago and one thing is for certain, you can bet that both sides are reaping in the cash.
Pro Tip: It might be a good time to go back and listen to the Whistleblower Season 1 series “Out of Bounds” about the Tim Donaghy saga. It’s absolutely fascinating and quite disturbing. And Bad Sport, anyone?
The “So What?”
Before you accuse me of donning a tinfoil hat, let me say that this article is intended not as an indictment on sports wagering, although full disclaimer: it will come as no surprise that yours truly is not a sports bettor. (One round of fantasy football circa 2000, a bet or two at Churchill Downs picked merely off jockey jersey colors (naturally!), and a Super Bowl Square or two does not a prolific betting history make!)
Rather, it is intended to provide an overview of the very real, very big, and very high stakes (pun intended) status of sports wagering and sound an alarm for what I’m seeing coming down the line that IS impacting the sport and tourism industry. And no one is talking about it.
The rapid succession of purported and confirmed major sports betting-related scandals surfacing is of significant concern. Not only for our little world in the sport and tourism industry, but for the soul, purity, and integrity of sport, as well.
If for the sake of industry preparedness alone, it’s worth the mental thought trial of examining “what if?” and downstream impacts.
19th Hole with Stoll
Here’s the deal:
What we are witnessing transpire in sports wagering – from its growth to its impact across the sports ecosystem, and its highly likely causal relationship to compromised integrity in sport – is just an additional piece of evidence indicating a cracking the façade of the current system of sport. And thus, sport and tourism.
By itself, it’s disappointing, frustrating, and just plain sad.
Taken in the broader context of the shaking happening within other equally questionable foundations of sport (private equity in youth sport, closing college programs, bloviated impacts, sustainability of international events, just to name a few we’ve written about recently), and you start to see a growing number of arrows in the quiver of real problems facing the industry.
Not coincidentally, all these arrows in the quiver are directly related to money. The MASSIVE amount of money swirling around all facets of the sports ecosystem. (Insert obligatory “Follow the money” cliché.)
All of which, I believe, are creating a perfect storm for seismic shifts.
As such, it is our duty – and our responsibility – to be discussing these issues, planning and preparing, and offering solutions to the industry.
I’m not offering a solution to all this right now. It’s a lot, and so much is unknown, but like any good Sherlock Holmes movie, the clues have been visible all along.
We’ll dive deeper into impacts and solutions in future writings, so stay tuned.
So what are sport and tourism practitioners expected to do in the meantime? I’m not suggesting you get your shovel and hammer and start constructing your doomsday shelter on the back 40. Rather, I’d suggest three things:
- Take a step back to look and think about all the indicators. Be open and willing to view the industry with sober reality. Join the discussion.
- Embrace “The only constant in life is change”. Realize change is coming, and in our industry, it’s also long overdue, and much needed. There is never-before-never-again opportunity abounding to shift our perspectives and hone our stewardship of the sport and tourism industry, and that’s exciting!
- Explore solutions with unbridled imagination. Sport and tourism will not look the same in the next 10 years, let alone 5. Let your creativity flow in reimagining how you, your organization, and your community can contribute to the reimagination of sport in its purest and intended form.
Although tumultuous, it is also an exciting journey ahead and a privilege to be on it!
All this to say, enjoy watching the big game Sunday, which – it should come as no surprise – is being played in New Orleans at…Caesars Superdome. You can’t make that up.
Evoke a thought.
