As I know via my work in economics, there are better ways to make estimates than pulling numbers out of thin air.
The first thing you do in such cases can be look for a real-world example. In This particular case, data via the U.K., which has allowed sports gambling for decades, with thousands of betting parlors offering odds on everything via Premier League matches to when royal babies are born.
The U.K.’s Gambling Commission tracks betting statistics in addition to issues an annual report. The one released in January shows in which Brits placed about 10 billion pounds in bets from the latest fiscal year.
To get a comparable estimate for the U.S., in which figure needs to be adjusted by population in addition to currency. The U.K. has only about 66 million people, compared with 327 million from the U.S. in addition to the pound was worth $1.36 on May 14.
After doing both adjustments, This particular suggests in which if people from the U.S. are allowed to make bets at the same rate as from the U.K., the size of the industry might be about $67 billion a year. While enormous, in which’s a far cry via $150 billion.
Will legal sports gambling be big business? Yes, nevertheless not as big as its proponents want you to believe.
Commentary by Jay L. Zagorsky, an Economist in addition to Research Scientist at The Ohio State University. He can be also a contributor at The Conversation, an independent source of news in addition to views via the academic in addition to research community. Follow him on Twitter @prof_jay_z.
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