What’s the current state of sports betting in the US?
- States That Allow Online Gambling
- States With Legalized Gambling
- States That Have Legalized Sports Gambling
Sports betting is a hot topic around the US. There are 13 states with legal sports gambling, and approaching two dozen that have some sort of sports wagering bill under consideration.
Oct 24, 2019 Sports betting is a multi-billion dollar market in the United States, and the current operators are illegal bookies and offshore gambling websites. Cash-strapped states looking for innovative new revenue sources are starting to see the sports betting market as a realistic way to generate money. Whether to legalize sports betting is expected to be debated in 2020 in a number of states, including Connecticut, Massachusetts, Missouri and Ohio — all states where efforts this year fell short.
Sep 04, 2019 How many states have legalized sports betting in 2019? After months of deliberation on a gambling expansion bill that included sports betting, Illinois Governor J.B Pritzker signed the bill.
Here is a look at where things stand:
- Yellow states have passed legal sports betting bills, have not yet launched it yet
- Green states have a legal, regulated sports betting industry
- Blue states introduced sports betting legislation in 2019
There was a federal ban on sports betting in the United States from 1992 to 2018 under the Professional and Amateur Sports Protection Act (PASPA). The 1992 law granted immunity to four states that had previously allowed sports betting inside their borders. Those states are Nevada, Delaware, Oregon, and Montana.
The state of New Jersey challenged the legality of PASPA. The Supreme Court heard oral arguments in late 2017. On May 14, SCOTUS issued a decision reversing the ban, striking down PASPA in full by a vote of 6-3. Thanks to the decision, the following states (in addition to Nevada) now offer legal sports betting:
- Delaware – Launched June 5, 2018
- Sports Betting in New Jersey – Launched June 14, 2018
- Mississippi– Launched Aug. 1, 2018
- West Virginia – Launched Aug. 30, 2018
- New Mexico – Launched Oct. 16, 2018
- Sports Betting in Pennsylvania – Launched Nov. 16, 2018
- Rhode Island – Launched Nov. 26, 2018
- Arkansas – Launched July 1, 2019
- New York – Launched July 17, 2019
- Iowa – Launched Aug. 15, 2019
- Oregon – Launched Aug. 27, 2019
- Indiana – Launched Sept. 1, 2019
- New Hampshire – Launched Dec. 30, 2019
States that have passed sports betting legislation, but haven’t launched it yet:
- Tennessee – April 30, 2019
- Montana – May 3, 2019
- Illinois – June 2, 2019
- North Carolina – July 26, 2019
- Colorado – Nov. 5, 2019
- Michigan – Dec. 20, 2019
Delaware was actually the first into the expanded market. The state used the existing sports betting law on its books, established single-game wagering regulations, and began taking bets on June 5, 2018.
New Mexico was an interesting case. Santa Ana Star Casino & Hotel signed a deal with USBookmaking in early October to launch a sportsbook and started booking legal wagers on Oct. 16. Santa Ana is a tribal property. Mississippi was the first state to launch tribal sports betting, but it was done in tandem with a state law. In Santa Ana’s case, sports betting is still illegal elsewhere in the state, but the tribe can accept bets on its land.
The Pueblo of Santa Ana Gaming Regulatory Commission regulates the casino’s wagers.
States That Allow Online Gambling
Oregon went a similar route. While the Oregon Lottery launched its SBTech-powered Scoreboard betting app Oct. 16, the tribal-owned Chinook Winds Casino Resort in Lincoln City opened the state’s first retail space. Chinook debuted its sports betting loungeAug. 27, and several other tribal casinos have expressed interest in joining the party.
Where can you bet on sports?
Nevada allows wagering on a variety of approved sports at land-based sportsbooks. Plus, sports betting is authorized on the internet through casino game apps connected to those sportsbooks.
Delaware
Delaware started taking single-game wagers in addition to its pre-existing parlay wagering on National Football League (NFL) games through the state lottery. With laws that supported the offering of single-game wagering, the state quickly assembled regulations. It started offering sports betting on Tuesday, June 5.
New Jersey
New Jersey started accepting wagers on June 14, just three days after New Jersey Gov. Phil Murphy signed the bill into law. Monmouth Park and Borgata Casino are the first two New Jersey properties to start taking wagers. The FanDuel Sportsbook at The Meadowlands launched a couple of weeks later. There are currently nine sportsbooks operational in the state with eight online and mobile apps.
On Aug. 1, DraftKings Sportsbook soft-launched its mobile betting app in New Jersey and went fully live a few days later. It was the first time someone placed a legal US sports bet online outside of Nevada. DraftKings partnered with Resorts Casino for sports betting. The app launched without a brick and mortar sportsbook at Resorts.
Those wishing to bet on the DraftKings Sportsbook app need to be at least 21 years old and physically located within New Jersey. Resorts opened its on-property sportsbook on Aug. 15 without any DraftKings branding.
It took three weeks for the second mobile app to join the NJ market. On Aug. 22, Borgata owner MGM Resorts launched a playMGM mobile app. Unlike DraftKings, the offering is mobile only and cannot be accessed via computer. SugarHouse Online Sportsbook & Casino, which went live on Aug. 23, was the first gaming operator in the US to launch an integrated online sportsbook and casino.
Apps have continued to stream into the market. The most recent to do so is Golden Nugget, which launched on Feb. 19. The Nugget’s entry into the market brings the total number of NJ online sportsbooks up to thirteen.
NJ sports betting apps
Here are the sports betting apps in New Jersey where you can wager online in the state:
| Online Sportsbook | Browser-based | Android | iOS | Notes |
|---|---|---|---|---|
| DraftKings | Yes | Yes | Yes | Combined DFS/Sportsbook |
| Betstars | No | Yes | Part of PokerStars NJ | Combined casino/sportsbook |
| FanDuel | Yes | Yes | Yes | |
| SugarHouse | Yes | Yes | Yes | Combined casino/sportsbook |
| 888 Sport | Yes | Yes | Yes | |
| Caesars | Yes | Yes | Yes | Combined casino/sportsbook |
| Golden Nugget | Yes | Yes | Yes | Combined casino/sportsbook |
| PlayMGM Sports | No | Yes | Yes | |
| William Hill | Yes | Yes | Yes | |
| PointsBet | Yes | Yes | Yes | |
| Hard Rock | Yes | Yes | Yes | |
| Resorts | Yes | Yes | Yes | |
| BetAmerica | Yes | Yes | Yes |
Sports betting interest continues to grow in the US. Fans now have the option to choose from many sports betting apps and online sports betting operators, often with enticing promotions like free bets. Here are five of the top sports betting apps that we recommend:
- DraftKings Sportsbook
- Betstars NJ
- Fanduel Sportsbook
- William Hill
- PointsBet
NJ sportsbooks
And here are the land-based facilities that are allowed to offer sports betting:
| Casino/racetrack | Sportsbook Name | Open? |
|---|---|---|
| Borgata | Borgata Race & Sports Bar | Yes |
| Resorts | DraftKings Sportsbook at Resorts | Yes |
| Ocean Resort | William Hill Sportsbook @ Ocean Resort | Yes |
| Monmouth Park | Monmouth Park Sports Book by William Hill | Yes |
| Meadowlands | FanDuel Sportsbook | Yes |
| Harrah's | The Book | Yes |
| Hard Rock | Hard Rock Sportsbook | Yes |
| Golden Nugget | The Sportsbook | Yes |
| Caesars | n/a | No |
| Bally's | Wild Wild West Sportsbook | Yes |
| Tropicana | William Hill Sports Book at Tropicana Atlantic City | Yes |
Pennsylvania
The first land-based sportsbook opened in November, at Hollywood Casino at Penn National Race Course. Two more sportsbooks at Rivers Casino and SugarHouse Casino opened on Dec. 13.
By the start of 2019, Parx Casino, South Philadelphia Turf Club and Harrah’s Philadelphia had all kicked off sports betting in staggered launches.
After the initial kick-off, more sportsbooks rolled out their betting operations.
| Casino | Sportsbook partner | Online Sportsbook |
|---|---|---|
| Hollywood Casino at Penn National Race Course | William Hill | Coming soon |
| SugarHouse Casino | Kambi | Open |
| Rivers Casino | Kambi | Open |
| Parx Casino and Racing | Kambi | Open |
| Harrah’s Philadelphia | Scientific Games | Coming soon |
| Valley Forge | FanDuel | Open |
| South Philadelphia Turf Club | Parx Casino | N/A |
| Oaks Race & Sportsbook | Parx Casino | N/A |
| Presque Isle Downs | BetAmerica | Coming soon |
| Mohegan Sun Pocono | Unibet | Coming soon |
| The Meadows | DraftKings | Coming soon |
| Mount Airy Casino Resort | Fox Bet | Open |
| Live! Hotel & Casino | N/A | 2021 |
Online sports betting began on May 28, 2019 with the soft launch of the SugarHouse Sportsbook PA app. Both the Parx and BetRivers apps followed in June, along with FanDuel Sportsbookin July. At this point, any one of the following operators could be the next to launch their site:
West Virginia
West Virginia was the fifth state to launch post-SCOTUS ruling. Hollywood Casino at Charles Town Races. The property launched a couple of days ahead of schedule, taking the first bet on Aug. 30. The state finalized regulations in early August and started issuing betting licenses shortly thereafter.
FanDuel (via The Greenbrier partnership) and Penn National were the first two licensees to go live. On Sept. 13, the FanDuel Sportsbook opened at The Casino Club inside The Greenbrier, the upscale private resort casino in White Sulphur Springs.
On Nov. 21, Mountaineer Casino, Racetrack & Resort launched its William Hill Sports Book, marking the state’s third sports betting location.
Wheeling Island and Mardi Gras casinos opened in December 2018 and launched the first online sports betting app using the BetLucky Sportsbook brand. However, parent company Delaware North has encountered a dispute with technology partner Miomni, and as a result, has indefinitely suspended operations at both casinos and the BetLucky app.
The good news is that after a long hiatus, online sports betting returned to West Virginia on Aug. 27 with the launch of FanDuel Sportsbook. DraftKings is expected to unroll its online betting platform shortly as well.
| Casino | Sportsbook | Online Sportsbook | Open? |
|---|---|---|---|
| Hollywood Casino at Charles Town Races | William Hill | Coming soon | Yes |
| The Greenbrier | FanDuel | Coming soon | Yes |
| Mardi Gras Casino and Resort | Delaware North (operations suspended) | BetLucky (operations suspended) | Yes |
| Wheeling Island Hotel | Delaware North (operations suspended) | BetLucky (operations suspended) | Yes |
| Mountaineer Casino, Racetrack & Resort | William Hill | Coming soon | Yes |
Mississippi
On the same day that NJ went mobile, Mississippi went live with wagering at two MGM properties, the Beau Rivage and Gold Strike Tunica. Currently, more than two dozencommercial casinos in the Magnolia State are taking in-person wagers. The law there stipulates no mobile wagering off property though.
Mississippi is also the first state outside of Nevada to have a tribal casino with sports betting offerings. The Mississippi Band of Choctaw Indians launched wagering at Pearl River Resort at the beginning of September.
In November 2018, DraftKings struck a deal to open a sportsbook inside the Scarlet Pearl Casino Resort in D’Iberville. The deal not only counts as DraftKings’ first physical sportsbook, it introduces DraftKings’ first sportsbook operation outside New Jersey.
The new venue opened on Friday, Nov. 16 and replaced PRL bar with multiple screens for betting on numerous sports–plus live in-game betting.
| Casino | Sports betting offered? | City |
|---|---|---|
| 1st Jackpot Casino Tunica | Yes | Tunica |
| Ameristar Casino Hotel | Yes | Vicksburg |
| Beau Rivage Casino | Yes | Biloxi |
| Boomtown Casino - Biloxi | Yes | Biloxi |
| Fitzgerald's Casino - Tunica | Yes | Tunica |
| Gold Strike Casino Resort | Yes | Tunica |
| Golden Nugget Biloxi | Yes | Biloxi |
| Hard Rock Casino - Biloxi | Yes | Biloxi |
| Harlow's Casino Resort | Yes | Greenville |
| Harrah's Gulf Coast | Yes | Biloxi |
| Hollywood Casino Bay St. Louis | Yes | Bay St. Louis |
| Hollywood Casino - Tunica | Yes | Tunica |
| Horseshoe Resort and Casino - Tunica | Yes | Tunica |
| IP Casino Resort Spa | Yes | Biloxi |
| Island View Casino | Yes | Biloxi |
| Isle of Capri - Lula | No | Lula |
| Lady Luck Casino | No | Vicksburg |
| Magnolia Bluffs Casino | Yes | Natchez |
| Palace Casino | Yes | Biloxi |
| Resorts Tunica Hotel & Casino | No | Tunica |
| Riverwalk Casino | Yes | Vicksburg |
| Sam's Town Tunica | Yes | Tunica |
| Scarlet Pearl Casino Resort | Yes | Biloxi |
| Silver Slipper Casino | Yes | Bay St. Louis |
| Treasure Bay Casino | Yes | Biloxi |
| Trop Casino Greenville | No | Greenville |
| Tunica Roadhouse Casino | No | Tunica |
| WaterView Casino and Hotel | Yes | Vicksburg |
Rhode Island
Twin River Casino in Lincoln took its first sports bets in November 2018 and on September 4, began taking mobile wagers. Customers are required to register online accounts in-person before they can begin placing bets.
Its sister property, Twin River Tiverton, near the Massachusetts border, launched retail sports betting in December 2018. The property plans to launch mobile wagering next week.
New Mexico
As of Oct. 16, a single property is taking bets in New Mexico. The Santa Ana Star Casino and Hotel is now the first tribal casino in the country to operate on native lands within a state that does not offer legal sports betting.
The state’s compact with the tribe allows for sports betting without a law change, so Santa Ana Star was able to streamline the process and launch as the sixth state with a sportsbook, beating both Pennsylvania and Rhode Island.
Arkansas
Sports betting is now underway at the Oaklawn Racing Casino Resort facility in Arkansas. Operations commenced on July 1 after a ceremonial bet from Oaklawn General Manager Wayne Smith.
Construction on a sportsbook at the state’s other racino, Southland Racing, is nearing its conclusion as well. According to the 2018 law that permitted sports betting in Arkansas, there are provisions for the introduction of two more sportsbooks in the state. Of course, those would require the construction of two more casinos, too.
New York
Sports betting is available at four commercial casinos, Resorts World Catskills, Rivers Casino, del Lago Resort & Casino, and Tioga Downs. Additionally, customers can places bets at two properties operated by the Oneida Indian Nation, Turning Stone Resort Casino and Point Place Casino.
A recent deal between Kambi and the Seneca Nation of Indians will see the European-based company operate sportsbooks at the tribes three casinos in Niagara Falls, Buffalo, and Salamanca.
New York sports betting made its official debut on July 16 just ahead of the 2019 NFL season. As for mobile wagering, Gov. Andrew Cuomo spoke in January about making online sports betting part of his upcoming budget plan. However, lawmakers failed to include mobile/online sports betting in the finalized plan on April 1, so fans will just have to enjoy retail sportsbooks for now.
Iowa
Eight Iowa casinos began retail sports betting operations at noon on Thursday, August 15. Additionally, four casinos powered by William Hill (Isle Bettendorf, Isle Waterloo, Lakeside, and Prairie Meadows) offer retail and mobile wagering. The other four casinos powered by PointsBet, Kambi and Bet.Works are expected to launch mobile operations soon. Iowa has also welcomed rising industry powers DraftKings and FanDuel sportsbooks. DraftKings opened retail operations at Wild Rose locations in Jefferson, Emmetsburg and Clinton; FanDuel did the same at Diamond Jo properties in Northwood and Dubuque.
Oregon
Oregonians can now place legal sports wagers. The Chinook Winds Casino in Lincoln City began taking bets on August 27. Owned by the Siletz Tribe, the casino offers retail sports betting allowing customers to bet on professional and college sports.
The state lottery selected SBTech to be its technology partner for sports betting, which went live Oct. 16 as Oregon Lottery introduced the Scoreboard betting app for Android, iOS and desktop. Wagering on college sports, however, is prohibited.
Indiana
Land-based Indiana sports betting officially began September 1. As expected, online sports betting followed, as DraftKings Sportsbook, BetRivers Sportsbook, and FanDuel Sportsbook all debuted in October. Just before 2020, BetAmerica upped the state’s online sportsbook count to four.
Two more sportsbooks are expected to launch by the Super Bowl. That includes Smarkets, which expected to go live before the end of 2019.
New Hampshire
In November 2019, the state’s executive council approved DraftKings as New Hampshire’s contracted sports betting provider. The up-and-coming sportsbook launched the state’s first betting app a month later. Additionally, DraftKings has the option to power retail sportsbooks in New Hampshire, though those will come at a later date.
States on the way?
Maine legislators have approved LD 553 in both houses and will shortly give it the final votes necessary to send it to Gov. Janet Mills. The bill allows state-licensed casinos and online operators to apply for licenses. Uniquely in the US, online operators do not have to partner with land-based casinos to get a license.
Also in November 2019, the Montana Lottery Commission approved rules for sports wagering under the Sports Bet Montana brand. Any business possessing alcohol and gambling licenses will be allowed to apply to offer sports betting. Such businesses would be authorized to house betting terminals and receive the green light from geolocation services to have the mobile app be available.
Key wagering laws
PASPA
In 1992, PASPA essentially made Nevada the only state allowed to offer legal sports betting. The law marked an effort by the federal government to end gambling-related corruption in sports.
American gangsters found some notable success coercing pro athletes to shave points or fix games so they could profit gambling on them. One infamous example is the 1919 Chicago White Sox World Series scandal.
PASPA ostensibly came about to prevent the proliferation of such scandals, as well as maintain the integrity of sports in the country.
Now, with PASPA deemed unconstitutional, states can decide whether they want to offer sports wagering. Additionally, Congress now has the option to draft and pass a law legalizing sports betting at the federal level.
The Interstate Wire Act of 1961
The Interstate Wire Act of 1961 is often referred to as the Federal Wire Act. This law essentially prohibits the operation of a number of betting businesses across the country, particularly those using the transmission of a wire communication to place bets. The law passed as a part of then US Attorney General Robert F. Kennedy‘s effort to suppress organized crime activity across the country.
Kennedy believed gambling operations run by organized crime groups were so completely intertwined with communications systems that going after their use would cripple the operations.
In December 2011, the United States Department of Justice released a legal opinion on the act. The decision concluded anything outside of sporting events falls outside the act’s reach. The opinion was meant to clarify whether states could sell lottery tickets on the internet.
However, Delaware, Nevada, and New Jersey all enacted online gambling legislation based on it. The decision did clarify the act was a part of the federal ban on sports betting.
Efforts by states to get sports betting
A number of states have either considered or passed laws seeking to legalize sports betting. The following states introduced sports betting legislation in the last few years but have not yet passed it into law:
- Kansas
- Oklahoma
The New Jersey challenge
The idea of legal sports betting in New Jersey passed through a public referendum in 2012. A bill permitting the state’s racetracks and Atlantic City casinos to offer sports betting similar to that in Nevada became law in 2013.
However, a number of pro and amateur sports leagues fought the law in court. They successfully struck it down. The state appealed to the Third Circuit Court, and the decision was affirmed.
The state passed another sports betting law in 2014 and lost again in district court. The Third Circuit Court of Appeals affirmed that decision as well. The state appealed that decision and lost that appeal too. The case moved on to the US Supreme Court. The Solicitor General recommended the court pass on hearing the case, but the court took it up and heard oral arguments in December 2017.
Again, on May 14, 2018, SCOTUS ruled PASPA’s sports betting ban unconstitutional.
Are attitudes changing about sports betting?
States are now lining up to introduce sports betting legislation. While only four passed such legislation, another 15 are considering a bill. With nearly half the states passing or considering new laws and a favorable SCOTUS decision, it is fair to say the tides are shifting.
Sports betting is a multi-billion dollar market in the United States, and the current operators are illegal bookies and offshore gambling websites.
Cash-strapped states looking for innovative new revenue sources are starting to see the sports betting market as a realistic way to generate money. This is similar to the change in attitude towards land-based casino operations and online gambling.
Position of sports leagues
| League/Team | Casino/sports betting partner |
|---|---|
| NBA | MGM Resorts |
| NHL | MGM Resorts |
| New York Jets (NFL) | MGM Resorts, 888 Casino |
| Philadelphia 76ers (NBA) | Caesars |
| Vegas Golden Knights (NHL) | William Hill |
| New Jersey Devils (NHL) | William Hill, Caesars |
| Dallas Cowboys (NFL) | WinStar Casino |
| Baltimore Ravens (NFL) | Horseshoe Baltimore (Caesars) |
When New Jersey passed sports betting legislation, major pro sports leagues,including the NFL, NHL, NBA, and MLB were the ones who took them to court to oppose it. Many of the same sports leagues stood in opposition when Delaware looked to expand its lottery parlay wagering beyond betting on football.
However, the leagues’ stances on sports betting may be softening. In fact, NBA Commissioner Adam Silverwrote an op-ed in the New York Times in 2014 calling for the repeal of PASPA. He claimed the popularity of gambling across the United States as a reason why.
Silver called for Congress to adopt a federal framework allowing states to authorize betting on professional sports. Of course, he also said it should be subject to regulatory requirements and safeguards. As new bills rolled out, it became clear Silver and other leagues also expect a cut of the sports betting revenue—a move drawing extensive criticism from the gambling industry.
Other leagues are echoing the NBA’s sentiments in the wake of the Supreme Court decision. They are lobbying for a federal sports betting bill with a cut for the leagues to help finance measures to preserve the integrity of their games.
On July 31 though, the NBA did something unprecedented. It partnered with MGM Resorts. MGM will be the official sports betting partner of the league. In exchange for $25 million, MGM will get to use league data and logos in its sports betting promotion for the next three years. The deal establishes a precedent that casino companies should pay sports leagues for certain data and content rights.
The NHL was the next to jump on the wagon with MGM. With the relationship between the two organizations bolstered by the Vegas Golden Knights‘ historic run to the Stanley Cup finals, the two announced a deal on October 29 to allow MGM access to the NHL’s intellectual property.
That access extends to use of the logos and associated property of the 31 teams in the NHL. MGM Resorts is also now the official resort of the NHL.
Individually, two of the NHL’s teams have not waited to partner with other gaming companies. Both the Golden Knights and the New Jersey Devils now have deals in place with sportsbook provider William Hill.
The American Gaming Association campaign
The AGA has long maintained illegal sports betting is a rapidly growing market in America. It also puts forward that laws against it only serve to push it all further underground.
The AGA says sports betting has only grown more prevalent since PASPA passed in 1992. It claims Americans now bet in excess of $150 billion annually, almost all illegal wagers. It remains to be seen how illegal wagering will be affected by the repeal of PASPA.
The AGA sends out press releases surrounding major sports events like the Super Bowl and March Madness estimating how much money Americans will bet on the events. The organization also called for the repeal of PASPA.
The message is clear: The AGA feels maintains a legal and regulated marketplace will generate tax revenue and jobs. They also say it will protect consumers while continuing to strengthen the integrity of major sports across the US.
September 2018 Congressional Hearing
There have been few opportunities for the various stakeholders on this issue to meet. However, five opinion leaders with differing viewpoints met on Sep. 27 to discuss their points of view with members of the US House of Representatives.
The House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations conducted the hearing, which was entitled “Post-PASPA: An Examination of Sports Betting in America.” The hearing featured statements by five witnesses and a question-and-answer session from the 16 members of the subcommittee.
States With Legalized Gambling
The main purpose of the hearing was to present information to the assembled lawmakers. No bill or motion will come from this discussion.
The five witnesses at the hearing were:
- Les Bernal, National Director of Stop Predatory Gambling
- Jon Bruning, Counselor for Coalition to Stop Online Gambling
- Becky Harris, Chair of the Nevada Gaming Control Board
- Jocelyn Moore, Executive Vice President, Communications and Public Affairs of the NFL
- Sara Slane, Senior Vice President of Public Affairs of the American Gaming Association
As indicated by their titles and positions, most of the witnesses presented testimony against state-regulated sports betting. They repeatedly cited concerns about game integrity and protection of minors.
Committee chair Jim Sensenbrenner (R – WI) concluded with a statement that indicated the lone takeaway from the hearing was that federal legislation and oversight would be imperative for sports betting. However, without another hearing or bill proposition, the state-based spread of sports betting is likely to continue at its current pace.
All those new sports gamblers will have to place their bets somewhere.
A Supreme Court decision that expands sports betting beyond Nevada could mean billions of dollars in new business for the casino industry.
The court ruling in favor of New Jersey overturned a 1992 federal law that had prohibited sports betting in most states. Currently, Nevada is the only state where single-game wagering is legal. Now, other states will have the opportunity to legalize the practice.
'The opportunity for a sportsbook is a whole new revenue source for casinos,' said John Decree, head of North America equity for Union Gaming, a boutique investment bank that focuses on the gaming industry.
Sports betting willbe a new source of revenue for casinos as well as a way to entice new customers into the casino, Decree said.
High foot traffic during major sporting events could encourage traditional gambling, noted David Katz, an analyst who covers gaming for Jefferies. Katz estimates that the casino industry could add as much as $2.9 billion to its annual profit.
MGM Resorts(MGM) said in a statement on Monday that it 'applauds' the decision, adding that it is 'extremely well positioned' to succeed after the repeal of the law. Boyd Gaming(BYD), which also operates casinos throughout the country, said it is in an 'excellent position to become a leading player in the growth and expansion of sports betting across the country.'
Caesars(CZR) also welcomed the decision, and said that it plans to expand its sports betting business.
Investors also saw potential in the news. MGM stock ticked up about 2%, Boyd rose about 4% and shares of Ceasr spiked about 6% on Monday.
Companies that have casinos throughout the country and rely on domestic revenue could gain the most, said Dan Wasiolek with Morningstar. Analysts are betting that casino operators like MGM and Ceasars could win out.
But there's a long way to go before the court ruling turns into profits for casinos.
'We are in the top of the first inning,' said Harry Curtis, an analyst with Instinet who covers gaming in the Americas. 'There are an awful lot of unanswered questions on this.'
One question is how long it will take for states to make sports betting legal.
'The amount of times it takes for an individual state to set up a regulatory structure and a tax structure [is] almost always ... longer than expected,' said Katz.
Even if states act quickly, casinos might not make that much off of sports betting.
Katz noted that casinos that don't have much experience with sports gambling could outsource bookmaking to companies like International Game Technology(IGT) and Scientific Games Corporation(SGMS). Expenses like taxes, possible integrity fees from sports leagues to make sure that betting doesn't throw games and operating costs could ultimately lead to a modest profit from sports betting, he added.
'Sports betting margins are notoriously narrow in a casino,' Curtis said.
Other companies stand to gain from the decision.
Shares of International Game Technology popped about 4% and Scientific Games spiked about 12% on Monday. And fantasy sports league platforms FanDuel and DraftKings are seizing the opportunity to enter into gambling.
FanDuel said in a statement that the decision will let it 'create a sports betting product that fans will love.' DraftKings also said that it will enter the sports betting market.