The US experience with sports betting

Abstract

Sports betting is a popular economic activity in the United States. Sports betting can generate some negative externalities like disordered gambling and increased incentives to fix the outcomes of sporting events, and it also generates utility for those who wager responsibly. The United States has taken an unconventional approach to the regulation of sports betting, one that outlaws most types while making sports betting fully legal in one specific location. This regulatory approach does not address the underlying problems associated with gambling and it encourages illegal sports betting markets. It serves as a poor example of how sports betting should be regulated.