Professors Reis and McBride – Part I
Authored by Eren Ucar
With today’s technology, consumers have a deluge of options when it comes to the types of media they can enjoy. Powerful mobile devices give people access to an entire world of content at just the swipe of a finger; an inexhaustible volume of entertainment all stored within one’s pocket. The sports industry, in particular, has benefited from this rise in access to technology, providing fans with a 24/7 news cycle and the ability to consume sports in a radically different manner. Long gone are the days of listening to a game on a pocket radio, procuring statistics from newspapers, or taping games on the VCR. From fan blogs to podcasts to streaming services, there are numerous ways that fans can consume content dedicated to their favorite teams, players, and leagues. Online databases help compile and present every statistic imaginable for any sport, free of charge, spanning decades of a league’s individual history. This unprecedented access to information has fueled the growth of relatively new avenues in sports consumption. In particular, the genre of “fantasy sports” games has been one of the largest beneficiaries of sports digitization. A game based on the performances of real-life players in real-life games, “fantasy” allows fans to pit their sports knowledge against other members in online, season-long leagues. Over the past 30 years, the total number of participants in fantasy sports games within the USA and Canada has grown from 1 million users in 1991 to 62.5 million in 2022, with that number projected to grow in the years to come. (Fantasy Sports & Games Association)
Alongside the rise of fantasy sports, consumers have witnessed the explosion of another relatively young industry: Sports Betting. In a landmark 2018 Supreme Court decision, the Professional and Amateur Sports Protection Act was struck down, which previously enacted a near-federal ban on sports gambling, and state governments now have full control over determining the legal status of sports betting within their borders. Since the ruling, 38 states have legalized sports betting nationwide, with New York and New Jersey among the most prominent and lucrative states. In 2023, the national sports betting industry set new records for total bets placed and revenue, amassing $119.8 billion and $10.9 billion, respectively. (Ramsay) In fact, in the past 5 years, since its legalization, Americans have bet over $220 billion across legal gambling outlets. (Perry).
As a member of Gen Z who has recently turned of age to legally sports gamble, I believe my historical position has given me a unique perspective on how sports consumption practices have changed in recent years. I personally have changed in recent years. I have spent most of my adolescence and young adulthood playing fantasy sports with my friends, family, and coworkers. Additionally, I have seen the evolution of the online sports betting industry in my home state of New York and how legalization has altered my sports consumption experience. I have witnessed the wave of TV ads for sportsbooks and billboards, as well as the explosion of betting-related content on social media. This type of content, which was entirely foreign before legalization, I believe, has impacted the conscious and subconscious consumer experience not only for me but for all sports fans across the nation. To investigate this connection, I not only analyzed the current academic literature and statistical data on both industries, but also reached out to my network through surveys and interviews to better understand their personal experiences with fantasy sports and sports betting.
However, in any growing industry, it is paramount to analyze the benefits and potential determinants driving its rise. According to several scholars, engagement in fantasy sports, a game rooted in the analysis of player statistics, has been correlated with an increase in sports betting among its users. Alarming is the fact that fantasy sports is a free-to-play game open to all ages and is highly marketed to younger fans interested in team and player performance. Increasingly worrying is the ease of access to fantasy and betting services, enabled by robust digital platforms that let fans interact with their fantasy teams, view player statistics, and place bets on the same device in a matter of seconds. Younger sports fans who will grow up in his highly digital sports environment, who will play games like fantasy sports due to their immense popularity, within the sports zeitgeist, will be primed at a much earlier age to participate in sports betting due to their inherent familiarity with sports statistics and digital tools. As such, it is crucially important for New York State to establish strong laws and guidelines to protect and educate against harmful gambling practices within the general population, especially amongst the youth. Additionally, New York State should use its leverage as the current market leader in sports betting to negotiate a more dynamic tax policy with sportsbook operators to ensure consistent, generous tax revenue to help fund public services.
