To learn what started gambling on sports one has to first examine the history of sports gambling in the US. The USA has a long history of allowing some kinds of legal gambling and also illegal betting to some extent. Political control and scandals regarding gaming interests have led to certain backlashes which have lead to prohibition or regulating sports gambling. Standards and laws relating to sports gambling have kept altering.
Nelson Rose describes these adjustments in law as three waves. The first wave was during the colonial era that lasted up until the mid 1800s, the second wave started at the end of the Civil War and lasted up until the early 20th Century and the 3rd wave commenced while in the Great Depression and it’s still continuing.
During the Colonial Era, diverse attitudes were enforced towards gambling. Puritan attitudes were adopted towards gambling and possessing dice, cards, gaming tables etc were banned. Afterwards it had been allowed as long as it wasn’t a calling or trade except for moderate and innocent recreation. Settlers brought along with them views that said gambling was nothing but a harmless activity. The frontier spirit encouraged the appeal of gambling since it involved high risk, high expectations and opportunism.
Eventually all colonies used lotteries as a solution out of economic problems as well as help the colonies. It became a civic responsibility and proceeds were used to create a number of the first prestigious universities, build churches and even libraries. Lotteries remained popular right to the early 19th Century. Horse racing was also popular and the Long Island built the very first race track in 1665. Casino gaming began to emerge slowly as roadhouses and taverns began to allow card games and dice.
The Lower Mississippi Valley became an organized and legitimate gambling area in 1800s. The grand river with its riverboats became a major trade avenue for both wealthy merchants and farmers. New Orleans soon gained recognition as being the gambling capital. Through the 1830s southern settlers turned against professional gamblers who were held responsible for carrying out crimes, debasing morals of society and endangering streets. During 1800s there seemed to be increasing attack of gambling especially lotteries and when operators absconded with the proceeds lottery scandals eventually concluded in prohibition of gambling.
The Gold Rush in California set off a tremendous increase in the kinds of gambling and San Francisco became the new gambling capital in the USA. During 1849 and 1855 gambling spread widely and also by 1850 California and lots of cities had licensed gambling centers. But soon the Legislature made most forms of gambling illegal and a number of professional gamblers were lynched. This prohibition drove wagering activities underground and could not eliminate it. Gambling was legal during 1869-1910 in Nevada.
It is possible to now understand what started gambling on sports in the US. With the numerous scandals within the lottery gambling segments, 35 states in the US including California prohibited lotteries. In 1933 pari-mutuel betting was legalized and new automated systems and laws made horse racing betting more straightforward. In 1978 casino gambling was legalized by New Jersey and Atlantic City became a popular tourist destination. Regardless of its illegality sports gambling became very popular and today is a billion dollar industry.
