If you have been following the news regarding states that have recently legalized sports betting you will have noticed that many of the early reports are showing a drastic shortcoming in revenue. States had high hopes and high projections, but with a few exceptions have generally come up short. Many reasons have been given as to why the numbers have not met expectations, but one common theme has generally stuck out above the rest. Many of the states that are slow out of the gate lack many, if any, mobile betting options.
What Is Mobile Betting?
It's a simple question of course, but mobile betting allows punters to wager from their mobile phones at a variety of locations. Pick up your phone, log in to the website or app, and it's like you've stepped foot inside your very own sportsbook. Of course, you will have to make sure your account is funded which you can do from the property of whose mobile wagering you are using.
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To The Bottomline
States like New Jersey, which have done fantastic revenue wise thus far, have had legalized mobile betting since they began. It allows punters to play on their phones from anywhere within the state. New Jersey continues to rack up large revenue numbers monthly and it is largely attributed to its mobile platform being offered. Typical state revenue numbers show the Garden state routinely doing 3x to 4x the numbers when comparing mobile to retail wagering.
And the increase in volume generally comes with an increase in the tax rate as well. New York is currently looking at legislation that would charge an additional 3.5% tax rate on mobile betting versus land-based wagering. And those rates seem to track closely with what is currently in place for neighboring New Jersey.
The Kings of Mobile Betting
While states like New York continue to debate whether they even want to offer mobile betting the offshore sportsbooks continue to remain the innovators in the mobile betting game. For as long as I can remember, offshore books have been synonymous with online sportsbooks and bookies. These guys have perfected their craft over the years and it generally shows in the end products offered. The sites, the ease of deposits and withdrawal, as well as 24-7 access make it tough to compete with when looking at retail shops.
What is a Pleaser?
States like Mississippi are going to continue to have a hard time competing vs offshore books when they are only offering a retail product. New Jersey serves as a prime example of the popularity of mobile betting. Imagine this, your day breaks right and suddenly you've got a few extra hours to watch the home team play. You figure you want to throw a few bucks on the game to make it a little more interesting. Now, who wants to pile in the car, take the drive down to the local casino, park, and go thru the entire process just to get a wager on a ballgame. Now imagine sitting in your favorite recliner, logging into your favorite site, such as Americasbookie, and firing away on days games from the comfort of your own living room.
There really is no comparison. As I put this together I picked up my phone and within 1 minute was able to pull up Americasbookie, login, and place a wager. And they're even going to give me bonus bucks for my trouble, or lack thereof.
Where to Go From Here?
States that only allow retail, onsite betting, will need to reevaluate their laws and figure out why they are passing up on this lucrative revenue stream. If they continue to sit on their current model they will continue to lose customers to offshore sportsbooks that will obviously continue to push a convenient mobile product.