With the arrival of the NFL and NCAA football seasons, online sports betting has experienced an uptick in usage, at least in Wyoming. When you watch football on television, every ad break features a commercial from FanDuel, DraftKings, BetMGM… the list goes on. In January of this year, a Kagan’s US Consumer Insights online survey reported that over 50% of online households in the US watch football, with basketball coming in second with just over 30%. Consumption of the country’s favorite sport means an opportunity for sportsbooks to earn your dollar.
The September 2024 wagering activity report from the Wyoming Gaming Commission reported a total of about $22.9 million bet by Wyomingites in the month, up from $10.8 million reported in the summer month of June. While a large amount of pro and college sports are happening at this time, the numbers show a significant decrease after January’s sum of about $20.3 million, and then picking back up this fall, coinciding with the football season.
The Branding Iron recently conducted an online self-report survey about sports gambling with UW students. 130 students filled it out, with 49.2% responding yes when asked ‘Do you sports gamble?’ 75% of freshmen surveyed reported ‘yes’, while only 39% of seniors said the same. 43.9% of juniors and 50% of sophomores said yes respectively. For more concrete numbers, further testing would be required, but this survey reveals a general range of the prevalence of online sports gambling at UW.
Interestingly, freshmen responded yes in the highest percentage, despite being under 21. In Wyoming, 18 is the legal betting age but most sportsbooks limit their own services to 21+ due to laws being different across the country, but some ‘fantasy’ wagering apps allow users to be under this age. Ironically, seniors recorded the lowest percentage, despite being more likely to be of age.
Since its legalization in Wyoming in September of 2021, online sports gambling has seen a rise in the state. The 2021 total amount of wagers was around $40.3 million due to the month in which it became legal. Then, in 2022, the number jumped to $144.5 million, with a total of $172.2 million in 2023. Now, in 2024, the total is already up to about $137 million, with the final 3 months of the year to surely help this value eclipse the 2023 numbers.
Along with their annual reports the Wyoming Gaming Commission is now conducting a feasibility study on the future of gaming in Wyoming. According to the Paulick Report, “The [Wyoming] Legislature requires the Wyoming Gaming Commission to conduct a statewide study of gaming in Wyoming including the structure of historic horse race wagering, skill-based amusement games, and online sports wagering.” The report is being conducted from September to October this year with the results to be published soon.
Similarly, a paper titled, “Gambling Away Stability: Sports Betting’s Impact on Vulnerable Households” was published in July of this year. This study also found a significant rise in sports betting across the US since its federal legalization in 2018. This isn’t a surprise, but the paper also found interesting trends with betting compared to household income and investing.
The researchers found that “Notably, sports betting drives a large decrease in net deposits to traditional brokerage accounts, especially among financially constrained households.”
Furthermore, they state “Our results suggest that access to online sports betting comes at the expense of equity market attachment and exacerbates financial difficulties faced by constrained households.” While this study doesn’t give the exact reasoning for why there is such a rise, it’s something to keep in mind for prospective bettors.
So what factors play into the rise of sports betting beyond its legalization? Amber Brown, a professor in economics at UW, who teaches a sports economics class, shared her thoughts. “It makes [the game] more exciting,” she said. “It’s a form of entertainment…it’s more exciting and you just get sucked into it.”
Michael Steinburg, an operations manager at the Wyoming Gaming shared a similar sentiment, though he admits he can’t give a definitive answer. “I think some are doing it as an addition to their enjoyment of watching sports…and some just plain enjoy gambling in general,” he said. “I’m not sure there is one specific answer as to why, rather a number of different reasons for different people,” he continued.
Additionally, while the addictive nature of gambling is well known, sportsbooks run deals that help bring more people in and keep their money in the online gambling space. Whether it’s a match of your deposit into the app or increased odds to boost your potential earnings, each company vies for your cash. “[The sportsbooks] try to pull you in with a lot of promotions because it is competitive to get your dollars,” Brown said.
Despite all these statistics, sports gambling is still a relatively new product in the US and Wyoming. Only time will tell whether UW students and Americans in general continue to pour money into the online betting markets, or whether it’s just a short-term fad that goes along with the novelty of a new form of entertainment.
