So we had some pretty good news this week from the US, the US federal government overturned a law that was implemented 2025 years ago banning sports betting. So I thought I’d do a little video to give you my view on how that’s going to influence the industry. Please like and comment on the video below that will allow me to produce better quality videos and more of them in the future.
If you’re interested in learning to trade successfully in sports, then why not visit the BET angel’ Academy, where we have more detailed videos so yeah when the Federal Court came out and overturned the ruling from many years ago as unconstitutional, then that was the big news that Occurred last week and I think it’s worthy of a video because, as you know, if you watch my channel, I’ve been to the US and back again repeatedly over a large number of years, not thinking that I could actually influence the outcome of that sort of process. But more to be an advocate for exchanges and a positive use of exchanges, and also you know. I’Ve always believed that, especially in this modern global world, where the Internet, it covers everything that it’s better to bring on board stuff and legislate correctly for it, rather than just pretend that it doesn’t exist or to push it out over the borders. Now you may actually remember, I did a video where I actually stood at the Mexican border and talked about this.
It was very short video and it’s probably worth reprising and putting into this video, so I’m currently stood here at the Mexican border. I’M in San Diego, the US is on this side of the border. Mexico is over there. If I go over here, you can see the border across there and over on the right here up a bit. I think there we go, you can see the border guard on one side, we have drugs, prostitution, illegal gambling and on the other side we have Mexico and one of the anomalies of this part of the world is that I’m not allowed to use Betfair on this Side of the border, but if I go over the border there I can use – and you know it’s one of many anomalies, but it’s just a bit curious to be stood here.
Knowing that, if I try to log in here, I would get rejected and yet, if I walk across the border at the border crossing which is over here, then I would be able to do it so yeah strange anomaly, but one of those things. I guess so that was filmed after I did a trip to Los Angeles to visit, bet fair’s headquarters in California and they have a or they bought out a company called TVG a long time ago. There’S a long history behind that and if you’re interested in learning more about TVG and what I discovered when I went there visit the blog post, which I’ll link in the video, because that’s actually describes in detail my thoughts at that particular moment in time. But yeah you know, I also you’ve probably seen the video on me in San Francisco, where I was talking to technology firms, venture capitalists and all of those sort of companies to just stir up interest over there and see if anything could come out of it. I think the big thing that we will find now is that when we look at the industry, basically it’s given it the green light to proceed. So it’s important to get it into perspective, just because at a federal level, they’ve decided that the law was unconstitutional.
It doesn’t mean that suddenly is all going to blow wide open and they’ll just be hundreds and billions of pounds worth of all dollars. I should say you know, from liquidity footing into the market. It’S not going to happen like that when you look at the way that law is made in the US, and I’ve looked at the lobbying side and Congress and all of those things a federal law applies across the entire country, so they set like a broad law And then that gets passed down to the states.
So when you look at the individual states, it’s pretty much like their own individual country. They can set their own sales rates tax, they can set business taxes, and you know I’m gon na paraphrase and summarize it, but basically that a federal law is very different from a state’s law. So what will have to happen from this point onwards is they’ll have to go around individual states deciding whether they want to introduce a bill or not. So it’s not as simple as just passing a law and then everything changes.
It basically gives the green light for something to happen. It doesn’t mean that something is going to happen or even very quickly and in previous videos. I’Ve made this observation that the East Coast is very commercial, the West Coast very liberal, and then you’ve got mid-america, which is very different as well. So I think, there’s a commercial imperative on the East Coast to make things happen. People on the west coast feel that they have the right to have that and in mid-america I think that you’ll be lucky to see any adoption of gambling happen very very quickly.
Now, of course, I could be wrong, but if you actually look, I found a really interesting graphic on the state at play effectively for betting legislation which I’ll put up on this video and I’ll talk over it now. But basically it highlights where there are builds in progress. We’Re betting is legal, we’re betting is illegal or why there is no bill in progress or no discussion taking place and that pretty much echoes my view that I’ve had for many years in terms of the state of legislation in the US, so yeah the federal bill Or the overturning the the law gives the right to proceed, but whether people proceed or not, it’s going to occur on a state-by-state basis, so there are lots of complications. I remember I met the legal counsel at TVG and he showed me the legislation for California.
Now is about this thick with about 400 million cabinets and exclusions and inclusions, and you know it was very, very, very, very very complicated and you got to multiply that by 50 states, so it’ll be interesting to see where things progress, but obviously it’s good news in Terms of there is a period of progression, that’s going on there and it’s interesting to have that debate taking place in people discussing it. In fact, I saw an interview where they, they actually sort of said also our people are going to quit their jobs and become professional gamblers. I thought that was quite quite hilarious.
I do believe that it makes sense. You know having different laws over different borders. It makes no sense in the internet age, so it’s better to bring those things on board, legislate it control it effectively and obviously you’ll get tax revenue from it. How that develops will be interesting to see because some of the tax could be punitive, and my gut feel I have to be honest here – is that probably it’s the sports books that will step in first because they’re easy models to translate and the revenue that they Generate could be shared and create decent tax revenue, and I think that the what will happen in terms of exchanges is they’ll face the same battle that we faced in Europe 20 years ago.
So I think a lot of bookmakers will probably try the easiest route in first, but, however, strategically, I think, that’s an error, because the exchange is such a great model, it’s new, it’s refreshing and it could generate enormous amounts of revenue if it’s adopted in the correct Format, I think exchanges and sports book can co-exist together, although obviously the exchange is a much better model and much fairer for your average punter. So I think if anybody has the guts to really push the exchange model, I think it’s there for the taking in the u.s. However, you know the change in or the the green lights for people to bet on sports has been given, and now we have to turn our attention to how that’s going to manifest itself and who decides to take it up most aggressively. So I think that it’s obviously a very, very positive move, and is it going to change things overnight? No, but will it change things in the long term? Yes – and our role should be now to encourage change in the absolutely positive direction that we all know and love, which is exchanges where possible, but yeah I’ll be keeping a close eye on it.
I’Ll be back over to the US again this year to continue those discussions and it’ll be interesting to see if we can finally get a bit of momentum up in what is potentially an absolutely huge sports betting market. You