As I write this, it is February 13, 2022 better know as Super Bowl Sunday. Similar to many of you, I checked in on You Tube this week and watched commercials for the upcoming Big Game. The result was a mixed bag with some real gems as usual.
What has gotten my attention is the forecast that nearly $8 billion will be wagered in sports books surrounding this one event. Doing a quick back of the envelope calculation, I realized that with approximately 330 million Americans, the $8 billion works out to roughly $25 wagered for each American man, woman, and child. Digging a bit deeper, I realized that the average bet had to be much higher as babies do not bet, neither do most children and importantly, most adults stand aside and do not wager at all although many will watch the game (Nielsen generally finds that 44-46% of households tune in at some point). I like to watch the game but also look at WHEN commercials run---if you only bought one 30 second spot for $6.4-7 million, you would like to be in the first quarter in case the game is a blowout. A major advertiser with several spots gets them spread across the game.
Back in May, 2018, after years of lawsuits and lusty lobbying, the Supreme Court lifted the Federal ban on sports betting. Since then, a majority of states have legalized it and California may soon join the fold as a referendum is on the November 2022 ballot to okay it in the Golden State.
According to AGA, some 79% of those polled want legalized sports betting in their home state—perhaps tax revenues are attractive to many respondents as only 13% of Americans are ACTIVE participants in sports betting.
At one time or another virtually all of you reading this have participated in a $5 pool at work regarding the Super Bowl or NCAA basketball tournament. Those were harmless diversions and fun in an office environment.
Today, there are hundreds of ways to bet the Super Bowl. My favorite was what color ---Green, Orange, or Yellow will the Gatorade be that is poured over the winning coach?
According to Statista, Football gets 77% of bets placed in the U.S, with Basketball (24%), Horse Racing (20%), Baseball (17%), and Soccer (9%). Sports bettors tend to be younger with 14% of 18-29 year olds and 22% of those 30-44 actively gamble on sports. Conversely, only 7% of geezers such as I bet with regularity on sporting events.
Offshore betting is fading as more states legalize the activity. Should sports teams share in the profits? The majority of people say NO—the owners make enough money.
All my life I have had the somewhat libertarian belief that governments should not regulate too heavily, legislate morality or tell people how to live. This week the $8 billion figure hit me a bit hard. In recent years, a number of college students told me that they gambled weekly on the NFL. To a man (no women admitted to it and I never asked anyone), they all said something to the effect of “I can handle it.” It reminded of the kids I knew around high school age who started smoking with the disclaimer that “I only smoke a pack a week.” Several died of lung cancer in their 50’s or early 60’s.
The DraftKings and other commercials regarding betting applications were novel at first but then became annoying and I really did not like it when an announcer would discuss a point spread during a college football telecast. A few people told me this week that they were at live games and some of the crowd booed when the quarterback fell on the ball a few times to run out the clock. Yes, the home team would win but they did not try to beat the point spread. How twisted is that?
Prohibition was a failure and gave organized crime a powerful foothold in the U.S. My hope is that the wide expansion of sports betting in the U.S. will not lure people into betting more than they can afford to lose.
If you are reading this prior to kickoff, enjoy the game!
If you would like to contact Don Cole directly, you may contact him at doncolemedia@gmail.com or leave a message on the blog.
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