The explosion of technology in recent years has significantly shortened our attention spans and dangerously increased our desire for an overstimulation of entertainment. Watching Outer Banks at the dinner table isn’t enough, one must also catch up on TikTok’s latest and greatest breaking news.
With the countless streaming platforms and latest gadgets, it’s clear the profound impact technology is having on the ways we interact with media and entertainment. But, it isn’t just a new generation of “iPad kids” or chronic procrastination that has resulted from this technological advancement.
Technology has also provided a platform for sports betting to redefine the future of professional sports. It’s no longer about watching Damian “Dame D.O.L.L.A.” Lillard and Steph Curry battle it out on the court — you also have to make sure your parlay hits. After all, what are sports about if not entertainment and competition?
While illegal sports betting has existed for hundreds of years in this country, it wasn’t until just a few years ago that it became widely legalized in America. In 2018, the Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act that had previously prevented sports betting in every state (except Nevada) for nearly three decades. The Supreme Court’s decision didn’t immediately legalize sports betting, but instead gave each state the power to decide.
Incentives for states include the potential for millions of dollars in tax revenue, and it seemed like a win-win-win situation for all parties involved, so long as the Detroit Pistons do the impossible and make you a millionaire off 1000-to-1 odds. With lower regulations and taxes, more sportsbooks would be able to enter the market, a wider audience of Americans would have access to place more bets and this increased volume would ultimately generate more tax revenue.
Since the ruling in 2018, 37 states have joined Nevada in legalizing sports betting of some form, while 30 states now allow it via online platforms. The legalization prompted the addition of sportsbooks and betting kiosks in state and tribal casinos, as well as FanDuel and DraftKings brick-and-mortar lounges. However, the largest source of revenue remains online betting platforms, which have contributed to the industry’s $10 billion worth.
The coronavirus pandemic proved to help the industry more than anything since the Supreme Court decision, as it challenged the norms of entertainment consumption.
The pandemic eliminated any concept of normalcy in the world and — with endless hours to fill watching Tiger King and TikTok — millions of Americans turned to sports betting for that familiar sense of entertainment and connection to the game.
The pandemic presented professional sports with a much more virtual platform through which leagues could continue to capitalize on the fan experience while seizing the opportunity to manufacture a “new normal,” like how the NBA televised virtual fans during the ‘bubble.’
While Americans were losing jobs and battling illness, major sportsbooks like FanDuel and DraftKings capitalized a collective $1.5 billion in revenue.
Even though the coronavirus produced record-high revenue for companies, sports betting isn’t just a temporary part of the pandemic hangover. Much more mature international markets have existed for decades, and it was ultimately the 2018 decision in the U.S. that permanently changed the forecast of what professional sports will become.
“These sports leagues have no choice but to embrace gambling,” former NBA player and current TNT Sports analyst Charles Barkley said. “These leagues are getting paid, and honestly, I do commercials for FanDuel.”
There’s no doubt technology has strongly impacted public opinion on sports betting since its rise in the early 2000s.
In 2003, the NFL refused to air a Super Bowl commercial for Las Vegas tourism because of the city’s affiliation with gambling. Fast forward to 2023, the NFL generates roughly $2.3 billion per year from legal sports betting and Sin City even hosted the 2024 Super Bowl, where FanDuel alone collected $307 million in wagers from more than 2.5 million Americans.
“Gambling is one of the reasons the NFL is King Kong,” Barkley said. “They are the most popular league by far, and it has a lot to do with gambling.”
Technology’s impact is unignorable, as it delivers an efficient access point for anyone to enjoy an additional element of entertainment. This access allows anyone to mindlessly place bets and promotes the placement of “prop bets,” which are side wagers not related to the outcome of the matchup.
Prop bets are an instant way to make a game more interesting for fans, especially if one’s spread bet isn’t looking hopeful.
There are nearly 60 legal sportsbooks in America today, and while their goal is to produce revenue, consumers are seduced by the opportunity to make fast money while staying connected to their favorite teams and players.
“[I am] a big gambling person myself, but I am concerned about gambling in sports because being able to bet in-game on who’s going to make the next basket, if somebody’s going to make two free throws, I think it can easily make somebody become addicted,” Barkley said.
Sports betting certainly poses substantial risk, but the technology is unavoidable, and it’s up to these professional leagues if they want to capitalize on this opportunity or try to hold on to an image of the good ol’ days that no longer exists.
Aside from the potential health risks that result from gambling-related addiction, the skepticism many Americans experience towards the sports betting industry stems from uncertainty. Just as no one could have predicted the impact TikTok would have on consumerism, it’s impossible to conclude exactly what the sports betting landscape will look like in five or 10 years.
Another thing to look out for is the impact of artificial intelligence. Breakthroughs in AI technology have disrupted markets all over the world, from television media to delivery services. Its potential is lurking behind the shadows, and it’s unclear exactly how it will impact sports betting. Such changes include outcome-predicting algorithms used to forecast winning bets.
League commissioners have discussed necessary regulations regarding betting, including NBA Commissioner Adam Silver, who spoke out in support of a safe hub for sports betting back in 2014.
“I believe that sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated,” Silver said in a New York Times op-ed.
Silver’s argument is similar to those of many Americans, as he acknowledges the potential opportunities that could come from endorsing such an industry.
There’s no denying the industry’s potential for creating a multi-billion dollar market, but the next few years pose a crossroads for American professional sports leagues. They can either lean into the endorsement of sports betting — capitalizing on potential billions — or they can hesitate and lose out on a new generation of potential fans focused on entertainment and instant gratification.
“I’m not sure there’s a mature way to gamble because you have no control over who’s betting, old people, young people, or anything, but I do know sports gambling is here to stay and it’s probably only going to get bigger and more dangerous,” Barkley said.
These leagues will have to rely on each respective state to legalize sports betting, but if they help advocate for the industry’s country-wide legalization, multiple parties would stand to make millions of dollars.