The Lede, Tuesday, May 15, 2018
By David Royse
Happening later this week: the Brightline train in Florida begins service to Miami
The New Sports Betting Industry
We’re not a sports news site, not a gaming site – why so much coverage of sports betting?
Part of my goal here has always been to cover new industries. And while there may be a bit more exuberance than is warranted, the decision by the Supreme Court yesterday to let states allow sports betting is going to create a whole new industry of companies that can figure out how to allow people to place bets on their phones, provide news and information on odds to them and collect their money on the off chance they win any. (CNBC has a look at some of the early stock picks to consider in light of yesterday’s decision)
Here’s how CNN’s Dylan Byers, who covers tech put it yesterday – and this is ultimately why we’re covering it:
“We’re about to witness the launch of a new economy built on vice, not unlike the end of prohibition or the legalization of marijuana….”
(Vice is a subjective thing – I’ve been to a few Catholic church picnics and laid some quarters down on squares with numbers while some nuns spun a wheel around before taking my quarters.)
But the point is, this is going to spawn a big new industry.
More from CNN’s Byers: “Legal sports betting will lead to a rush on new apps and services from tech startups and legacy media companies who will join traditional bookmakers and online betting sites …. The move will also create a whole new field of content around sports betting, including news, analysis and data analytics.”
So I’m just putting the new in news.
States Follow-Up on Sports Betting
I noted yesterday that several states were going to be moving quickly to legalize sports betting. What I failed to mention was that a few already have. Connecticut, Mississippi, New York, Pennsylvania and West Virginia recently legalized sports betting in anticipation of the favorable ruling from the Supreme Court.
Nearly 20 states have introduced bills to make sports betting legal. And the Washington Post reported on a 2017 report from Eilers & Krejcik Gaming that said as many as 32 states could allow it within the next five years.
Not a Huge State Windfall
States and local governments see the idea as a potential to bring in more tax revenue – but the odds for a big jackpot aren’t really all that good. Sports betting in Nevada is just 2 percent of gambling revenue, according to Governing, which also cited an estimate from Rhode Island that legalized sports betting could bring in about $24 million – less than one percent of the state budget.
And a little bit of tamping down on the exuberant estimations of the value of this new industry. Despite what the gaming industry says, there’s some doubt as to the total valuation. More from Marketwatch
TODAY’S MOST INTERESTING IDEA
Could cars be replaced by overhead pods? Transit X thinks so
NOTES FROM THE AGE OF DISRUPTION:
Tampa Electric Co.
Could increase its renewable energy generation dramatically with newly approved solar project. Daily Energy Insider
Amazon and Kaleido
Are teaming up to help people put their services on blockchain systems. CNBC
Has a reusable rocket plan – wants to compete with Blue Origin and SpaceX. Popular Science
Also, on the geography of success:
Go West, Young Man
States With the Top GDP Growth, according to latest federal data: Washington State, Colorado, Nevada, Arizona, Utah and California all saw robust GDP growth of more than 3 percent last year to lead the nation. More from Governing.
Many Small Cities Are Doing Pretty Well
And finally, a hopeful look at what’s really going on in our Heartland cities. It’s actually not as bad as some might have you believe – it’s pretty good. Curbed reviews James and Deborah Fallows book on how small American cities are thriving.
As always, I welcome your thoughts. @daveroyse on Twitter or firstname.lastname@example.org