What started betting on sports
To understand what started betting on sports one has to first examine the history of sports gambling in the US. The USA had 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 ended in certain backlashes that have resulted in prohibition or regulation of sports gambling. Standards and laws relating to sports gambling have kept altering.
Nelson Rose explains these adjustments in law as three waves. The 1st wave was during the colonial era that lasted till the mid 1800s, the 2nd wave started at the end of the Civil War and lasted till the early Twentieth century and also the 3rd wave commenced while in the Great Depression and is 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 was allowed so long as it wasn’t a calling or trade but for moderate and innocent recreation. Settlers brought along with them views that said gambling was merely a harmless activity. The frontier spirit encouraged the appeal of gambling as it involved high risk, high expectations and opportunism.
Eventually all colonies used lotteries as being 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 initial 19th Century. Horse racing was also preferred and the Long Island built the first race track in 1665. Casino gaming started to emerge slowly as roadhouses and taverns began to allow card games and dice.
The Lower Mississippi Valley became a structured and legitimate gambling area in 1800s. The mighty river with its riverboats was a major trade avenue for both wealthy merchants and farmers. New Orleans quickly gained recognition as the gambling capital. During the 1830s southern settlers turned against professional gamblers who had been held responsible for committing crimes, debasing morals of society and endangering streets. During 1800s there was increasing attack of gambling especially lotteries and when operators absconded with all the proceeds lottery scandals eventually concluded in prohibition of gambling.
The Gold Rush in California set off a huge increase in the types of gambling and San Francisco was crowned the new gambling capital in the USA. During 1849 and 1855 gambling spread widely and by 1850 California and lots of cities had licensed gambling centers. But soon the Legislature made most types of gambling illegal and a number of professional gamblers were lynched. This prohibition drove gambling activities underground and could not eliminate it. Gambling was legal during 1869-1910 in Nevada.
It is easy to now understand what started gambling on sports in the US. With all the many scandals in 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 honest. In 1978 casino gambling was legalized by New Jersey and Atlantic City became a popular tourist destination. Despite its illegality sports gambling became quite popular and already is a billion dollar industry.