You might be all too aware of the COVID-19 pandemic that swept the world in the latter half of last year. While the world mostly cooperated in order to avoid a second wave of the virus, some countries took a different approach and decided to embrace the sports betting industry during this time. Specifically, they decided to give legal sports betting a try, and let the chips fall where they may. And so, while the majority of countries have now moved onto a form of digitalized sports gambling, many of the traditionalists still prefer to place wagers using traditional mediums. Namely, chalk and cheese, dice, and of course, the horse race.
Chilly Winch And The Growth Of Online Sports Gambling
In late 2019 and into the first quarter of 2020, several countries looked to the financial sector reform program (Cherry Picking) to help mitigate the effects of the pandemic. Since the sports betting industry had largely stayed afloat in those regions, they sought to establish legal sports betting in order to bring in revenue and generate a sense of normalcy. Some of the first nations to accept wagers were New Zealand and Australia, which both legalized sports betting in 2020. According to Delrina Global, around 310 million New Zealand dollars ($237.8 million) worth of bets were placed during the first two months of 2020 alone.
This represented a 400% increase in comparison to the same time period in 2019. In Australia, the figure was 185 million Australian dollars ($145.9 million) worth of bets.
Most notably, the Indian subcontinent—which includes India, Pakistan, and Bangladesh—saw a 600% increase in 2020 as compared to 2019, and it continues to be one of the largest markets for traditional sports gambling. Some of this can be attributed to the COVID-19 pandemic, while the other part can be attributed to the region embracing modernity and embracing newer forms of entertainment. For instance, in March 2020, the Cricket Board of India (CBI) made it legal for individuals to bet on cricket matches, and it remains one of the largest markets for cricket betting today.
Digital Sports Gambling
While many countries moved towards establishing legal sports betting, they did so using newer and more modern methods and technologies. Specifically, most of the jurisdictions opted to go digital, and established platforms such as cricket betting, with the ability to track scores and results of live matches, became popular. The advantages of this approach are numerous, as it allows individuals to place bets from the convenience of their homes, and it also allows for more security, as the data is held remotely.
One of the first countries to completely embrace digital sports gambling was the United Kingdom, which became one of the first countries in the world to fully embrace the potential of this method. In April 2020, the UK government passed the Gambling Act, which not only legalized but also actively encouraged the use of gaming devices to place wagers on sporting events. And so, the UK has seen an explosion in the number of online sportsbooks, with several companies emerging to provide these services.
Traditional Sports Gambling
While many countries have moved towards establishing legal sports betting, some have decided to keep their options open, and continue to operate under the traditional umbrella. This seems like an odd approach, as most people assume that governments would want to avoid encouraging gambling, especially during these difficult times. However, Pakistan is one of the notable exceptions to this rule, having fully embraced traditional sports gambling, and even opened up its first embassy in the country specifically to serve as a sportsbook. Similarly, several tribal councils in the United States have set up their own illegal sportsbooks, allowing individuals to wager on the favorite teams of the tribes.
Which Countries Embrace Legal Sports Betting?
As mentioned, several countries embraced legal sports betting, and several others opted to keep their options open, regarding whether or not to establish legal sports betting. Here are the details:
Australia
On January 25, 2020, the Australian government announced that it would be taking a “data-driven” approach to its response to the COVID-19 pandemic, and that this included a push to legalize a number of industries, such as online gambling. Specifically, they want to be “smart about how we regulate and control this space in order to minimize the potential for negative impacts, while also creating opportunities for the good.” This approach resonates with the larger gambling sector in Australia, as several companies have established themselves as “sports betting operators”, offering a safe and convenient option for Australian sports fans.
In accordance with this plan, the Australian government has established the sports betting task force, which will examine the feasibility of establishing legal sports betting, as well as examine the social, economic, and health issues surrounding the sector. The group will then present their findings to the federal parliament by the end of the first quarter of next year.
New Zealand
On January 30, 2020, New Zealand’s Chief Justice David Mckay announced that the country would be allowing individual bets on sporting events starting on March 10, 2020. Specifically, the ruling stated that “[t]he primary purpose for the law is to introduce a new market and generate additional revenue.” And so, beginning on that day, Kiwis will be able to bet on sporting events, including cricket, rugby, and tennis. This ruling was specifically aimed at providing a sense of normalcy to the country during these unprecedented times, ensuring that betting on sporting events remains a popular option for residents.
India
In April 2020, the Cricket Board of India (CBI) made it legal for individuals to bet on cricket matches, and it remains one of the largest markets for cricket betting today. This follows a similar decision made by the sport’s governing body in Pakistan in March 2020, with several other South Asian countries, such as Sri Lanka and Bangladesh, also allowing wagers on sporting events.
This represents a significant development for the region, as it allows for a more open environment, encouraging competition, and giving residents a chance to follow their favorite teams, especially since they can do so from the comfort of their homes.
United Kingdom
On April 23, 2020, the UK government passed the Gambling Act, which not only legalized but also actively encouraged the use of gaming devices to place wagers on sporting events. And so, the UK has seen an explosion in the number of online sportsbooks, with several companies emerging to provide these services.
Why Did Some Countries Stay Traditional?
While many countries moved towards establishing legal sports betting, some decided to stay more traditional, opting to keep their options open regarding whether or not to allow this form of gambling. Specifically, these nations seem to be worried about the social aspects of gambling, especially during these difficult times, with many people still not feeling comfortable enough to place bets, even though the law allows for this option. Additionally, some of these countries simply do not trust the technology behind online sportsbooks, preferring to keep things old-school, as it was before the pandemic.
The most notable example of this is the United States, where several tribal councils have set up their own illegal sportsbooks, allowing individuals to wager on the favorite teams of the tribes. The practice of keeping these illegal sportsbooks alive during these challenging times is actually the result of a deal cut between the tribes and the state government. Under the agreement, the tribes get to keep operating these illegal sportsbooks, and the state will not try to shut them down.
How Does Legal Sports Betting Affect Health?
Establishing legal sports betting will bring in significant revenue, especially during these challenging times, with several governments looking to this option as a source of funding. While this might not seem like a bad thing, the health sector in these regions will have to closely monitor the gambling industry, especially since many people who bet will be more likely to place bets on games involving professional sports teams.
Specifically, having a professional sports team in your area might mean that you are more likely to get sick from COVID-19, as the health sector in those regions will have to treat a large number of people, who are more likely to get sick from the virus. Additionally, since the outbreak of COVID-19 in 2019, numerous governments have stopped holding sporting events and have encouraged venues to close down, trying to limit the potential for the virus to spread. And so, while this will allow for a more open environment, especially in regions where the virus was not previously a threat, it will also put more people at risk due to a lack of social distancing.