To learn what started betting on sports one has to first examine the historical past of sports gambling in America. The US had a long history of allowing certain types of legal gambling and even 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 in 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 also the third wave commenced while in the Great Depression and it’s still continuing.
During the Colonial Era, different attitudes were enforced towards gambling. Puritan attitudes were adopted towards gambling and possession of dice, cards, gaming tables etc were banned. Later on it had been allowed so 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 merely a harmless past time. The frontier spirit encouraged the appeal of gambling as it involved risk taking, high expectations and opportunism.
Ultimately 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 utilized to establish some of the first prestigious universities, build churches and also libraries. Lotteries remained popular right to the initial 19th Century. Horse racing had also been popular and the Long Island built the first race track in 1665. Casino gaming began to emerge slowly as roadhouses and taverns began to permit card games and dice.
The Lower Mississippi Valley became an organized 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 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 seemed to be increasing attack of gambling especially lotteries and whenever operators absconded with the proceeds lottery scandals finally concluded in prohibition of gambling.
The Gold Rush in California triggered a huge surge in the types of gambling and San Francisco became the new gambling capital in the US. During 1849 and 1855 gambling spread widely and by 1850 California and many cities had licensed gambling centers. But soon the Legislature made most forms of gambling illegal and certain 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 all the numerous scandals within the lottery gambling segments, 35 states in America 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 was a popular tourist destination. Regardless of its illegality sports gambling became very popular and already is a high dollar industry.