To learn what started betting on sports one has to first examine the historical past of sports gambling in America. The USA had a long history of permitting certain types of legal gambling and also illegal betting to some extent. Political control and scandals concerning gaming interests have led to certain backlashes that have resulted in prohibition or regulating sports gambling. Standards and laws pertaining to sports gambling have kept changing.

Nelson Rose explains these changes in law as 3 waves. The 1st wave was during the colonial era that lasted up until the mid 1800s, the 2nd wave started at the end of the Civil War and lasted till the early Twentieth century and also the third wave commenced during the Great Depression and it’s still continuing.

During the Colonial Era, different attitudes were enforced towards betting. Puritan attitudes were adopted towards gambling and possessing dice, cards, gaming tables etc were outlawed. Later on it had been 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 nothing but a harmless past time. The frontier spirit encouraged the appeal of gambling since it involved risk taking, high expectations and opportunism. sport betting arbitrage

Eventually all colonies used lotteries as being a solution from financial problems and to help the colonies. It was a civic responsibility and profits were used to establish some of the first prestigious universities, build churches and also libraries. Lotteries continued to be popular right to the early Nineteenth century. Horse racing was also preferred 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 a structured and legitimate gambling area in 1800s. The grand river featuring its riverboats became a major trade avenue for both wealthy merchants and farmers. New Orleans quickly gained recognition as being the gambling capital. During the 1830s southern settlers turned against professional gamblers who had been blamed for committing crimes, debasing morals of society and endangering streets. During 1800s there was increasing attack of gambling especially lotteries and whenever operators absconded with all the proceeds lottery scandals finally led to prohibition of gambling.

The Gold Rush in California set off a huge surge in the types of gambling and San Francisco became 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 forms of gambling illegal and a number of professional gamblers were lynched. This prohibition drove wagering activities underground and did not eliminate it. Gambling was legal during 1869-1910 in Nevada.

It is easy to now understand what started gambling on sports in the USA. With 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 was a popular tourist destination. Despite its illegality sports gambling became quite popular and today is a billion dollar industry.