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# Will Businesses Cash In on Sports Gambling?

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<!-- video src="https://cdn.jwplayer.com/manifests/1qIJsNF9.m3u8" -->
## Video: Will Businesses Cash In on Sports Gambling?

[Watch (HLS stream): Will Businesses Cash In on Sports Gambling?](https://cdn.jwplayer.com/manifests/1qIJsNF9.m3u8) (3:20)

![Will Businesses Cash In on Sports Gambling?](https://cdn.jwplayer.com/v2/media/1qIJsNF9/poster.jpg?width=720)

_Published 2018-05-16. Fortune editor Polina Marinova discusses how the Supreme Court’s ruling to OK sports betting will impact the industry at large._


---

Jul 27, 2023 11:58 PM UTC

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---


## Transcript

[ MUSIC ] All bets are on. In a six three ruling this week, the Supreme Court cleared the way for states to legalize sports betting. Justice Samuel Alito Claim this issue has long divided Americans, stating, the legalization of sports gambling is a controversial subject. Supporters argue that legalization will produce revenue for the states and critically weaken illegal sports betting operations, which are often run by organized crime. Opponents contend that legalizing sports gambling will hook the young on gambling, encourage people of modest means to squander their savings and earnings, and corrupt professional and college sports.

But illegal sports betting already amounts to approximately $ 150 billion annually, so the people and the money's on the table. States are now tasked with how best to regulate the industry. While this decision presents a huge opportunity for new businesses, it also paves the way for existing daily fantasy sports companies like FanDuel and DraftKings to expand their offerings for its user base. The two sites currently account for over 90 % of the 2. 9 billion daily fantasy sports market. Earlier I spoke with Fortune editor Paulina Marinova, who shared her insights on what this ruling means for the industry at large.

All right Paulina, thanks so much for joining us here at The Breakdown, and I want to get your opinion. For, on your opinion, what impact does this ruling have on the industry at large, and was it even a suprising decision? It's not necessarily surprising but it's big. Right now the illegal sports betting industry is roughly $ 150 billion a year. It's an unregulated black market that will come into the space and now startups and venture capitalists will be able to take advantage of this, and who knows what it will look like in 5 to 10 years. Now you actually interviewed the CEO of Fanduel? Mm- hm.

So how are these guys Fanduel, Draft Kings? How are they gonna capitalize on this decision? While there won't be new market entrance startups coming in to capitalize on sports vetting, Fanduel and Draft Kings are the dominant players in hte space. They're also planning to release their sports vetting offerings this fall. So NFL season will be totally different this year. I can only imagine. Now justice Alito, he talked about how this would impact the youth. So who else do you think is gonna be worried by its impact? So some profesisonal sports leagues, they're not necessarily worried, but they're hesitant becuse they want to protect the sport's integrity.

In 2007, there was an incident where the FBI looked into a former referee who actually was betting on games and on the point spread. So it's something that everybody is gonna be watching, and the stakes are definitely high. Yeah, definitely gonna be a lot at stake. But Paulina, thanks so much for joining us. [ MUSIC ] [ MUSIC ]

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