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Pay Per Head businesses, bookies, agents and online sportsbooks were mostly celebrating last week's landmark decision by the U.S. Supreme Court allowing all 50 states to legalize sports betting (not all will). The rationale for this mindset is, well, it changes the public's mindset about an activity that for centuries has been frowned upon, perhaps a few notches above prostitution.
The days of Tony and Vinnie running around breaking legs of those owing money to their neighborhood bookmaker may be over, but this is primarily a result of Pay Per Head establishments cropping up and converting corner bookmakers into legitimate business enterprises. Pay Per Heads have, in recent years, removed much of the stigmas associated with the typical bookie biz: Wire rooms, debt collectors, degenerate operators. PPHs act as contract services that charge a small fee per customer and essentially run the entire business for bookmakers and agents. They also provide features previously unavailable such as LIVE IN-PLAY WAGERING, online casino and poker platforms, a web-based race book, endless props and more savvy line management.
PricePerPlayer.com notes that, as each state is considering making sports gambling legal, they will need to look at the many Benefits of Legalized Sports Betting. The most obvious one is from a taxation point which will mean more income for the state. However, the other question remains, what does everyone else get from legalized sports betting?
The Gambling Industry will profit from legalized sports betting in the U.S. This is already a given.
“First off, licensed sportsbooks will now be able to operate to a new crowd thus generating more revenue. In addition, they will now be able acquire customers who currently used an offshore sportsbook to place their bets.”
But what about the bookies and Pay Per Head industry?
“The Bookie Pay Per Head industry will also cone out a winner because they will now be able to offer their services to a larger number of businesses.”
Many experts see a legalized online sports wagering industry operating much the same way as the legalized online horse betting sector does currently in the U.S. Companies like TwinSpires and XPressBet run successful businesses, however, they are not for everybody. Those who like to gamble anonymously will likely choose offshore firms that do not require submission of social security numbers and reporting of winnings to the IRS. The U.S.-based horse betting sites are also unable to operate in over a dozen states including the 2nd most populous, Texas.
- Aaron Goldstein, Gambling911.com
