To understand what started gambling on sports one has to first examine the history of sports gambling in America. The USA has a long history of permitting some kinds of legal gambling and also illegal betting to a certain degree. Political control and scandals concerning gaming interests have led to certain backlashes which have lead to prohibition or regulating sports gambling. Standards and laws relating to sports gambling have kept altering.
Nelson Rose explains these changes in law as 3 waves. The 1st wave was during the colonial era that lasted till the mid 1800s, the second wave started following the Civil War and lasted up until the early Twentieth century and also the third wave commenced during the Great Depression and is still continuing.
During the Colonial Era, different attitudes were enforced towards gambling. Puritan attitudes were adopted towards gambling and possessing dice, cards, gaming tables etc were banned. Later on it was allowed as 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 nothing but a harmless past time. The frontier spirit encouraged the appeal of gambling since it involved high risk, high expectations and opportunism.
Eventually all colonies used lotteries as being a solution from economic problems as well as help the colonies. It became a civic responsibility and proceeds were utilized to create some of the first prestigious universities, build churches and even libraries. Lotteries continued to be popular right to the early 19th 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 started to permit card games and dice.
The Lower Mississippi Valley became a structured and legitimate gambling area in 1800s. The grand river with 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 carrying out 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 eventually led to prohibition of gambling.
The Gold Rush in California triggered a tremendous increase in the kinds of gambling and San Francisco was crowned the new gambling capital in the US. During 1849 and 1855 gambling spread widely and also by 1850 California and lots of cities had licensed gambling centers. But soon the Legislature made most types of gambling illegal and certain professional gamblers were lynched. This prohibition drove gambling 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 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 became a preferred tourist destination. Regardless of its illegality sports gambling became quite popular and already is a billion dollar industry.