If there is one thing everyone can agree on, it is that the new coronavirus disease has taken us all by surprise. Normally one would expect third world countries to be the hardest hit by the virus. But this was not the case, as even first-world countries with first-rate health care were hit hardest, such as Italy and the United States. The crisis of the pandemic not only brought major health problems. It also dealt a serious blow to the economy.
Due to strict restrictions, orders to stay at home and the imposition of social and physical distancing, many businesses in various sectors have been forced to close. No one can say for sure when they will reopen. Because of the prolonged loss of income, many businesses have thrown in the towel and declared bankruptcy . Others, on the other hand, are still trying to sustain their businesses with government-initiated loans and improvement programmes.
In doing so, the government has also suffered economic losses. Tax revenues are expected to be much lower than expected due to discontinued operations, bankruptcy or credit by cash enterprises. However, there may be one industry that can still save the economy by generating large revenues. These are apps and services like Bet9ja or the world of sports betting.
How sports betting can save the economy
Even before all this crisis, the sports betting industry's revenues were nothing short of great. A report with figures revealed that from June 2018 to date, the total revenue from sports betting handed over to the government was at least $200 million. But now for example more Litecoin betting sites are being used . Because these sites allow you to bet on sports thanks to cryptocurrencies, which is the most popular and easy to use.
Keep in mind that this figure only shows sports betting revenue. This does not include other forms of gambling, such as land-based casinos and online casinos.
Another thing that should be of interest is that while this number is already huge, it comes from less than half the states in the country, as sports betting is currently only allowed in 23 states. If sports betting were spread across more states or, better still, the whole country, these numbers could be doubled, if not tripled.
With most sectors now either going bankrupt or suffering heavy losses, the sports betting industry has managed to stay afloat even in these difficult times. While live sporting events have been cancelled until further notice, sports betting operations have continued with online sports betting.
This means that while other sectors have stopped generating revenue for the government, the sports betting industry continues to generate revenue, if not more than before. As people are stuck in their homes, those who used to gamble and bet on sports are still keen to do so and hence now engage in their activities through online and mobile providers.
Is legalisation coming soon in other states?
So far, only 23 states have managed to make sports betting a legal activity under the law. On the other hand, another 16 states have already proposed bills that also aim to legalise sports betting as a protected, regulated and taxed activity. If all these pending bills in other states are passed, online sports betting apps like Bet9ja will be able to operate legally and thus also generate revenue for the state.
While revenue from sports betting is far from being a major part of the tax bill, it could be considered a much-needed boost right now - as some would say, any additional income is good income, not no income at all.
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