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 some kinds of legal gambling and also illegal betting to some extent. Political control and scandals concerning gaming interests have led to selected backlashes that have resulted in prohibition or regulation of sports gambling. Standards and laws pertaining to sports gambling have kept changing.
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 second wave started at the end of the Civil War and lasted till the early 20th Century and also the 3rd wave commenced while in the Great Depression and it’s still continuing.
Throughout the Colonial Era, diverse attitudes were enforced towards betting. Puritan attitudes were adopted towards gambling and possession of dice, cards, gaming tables etc were outlawed. Afterwards it was allowed as long as it wasn’t a calling or trade but for moderate and innocent recreation. Settlers brought 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.
Eventually all colonies used lotteries as being a solution out of financial problems and to benefit the colonies. It was a civic responsibility and proceeds were used to create some of the first prestigious universities, build churches and even libraries. Lotteries remained popular right to the early 19th Century. Horse racing was also popular 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 mighty river featuring its riverboats was a major trade avenue for wealthy merchants and farmers. New Orleans soon gained recognition as the gambling capital. Through the 1830s southern settlers turned against professional gamblers who were blamed for carrying out crimes, debasing morals of society and endangering streets. During 1800s there was increasing attack of gambling especially lotteries and when operators absconded with the proceeds lottery scandals eventually 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 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 gambling activities underground and did not eliminate it. Gambling was legal during 1869-1910 in Nevada.
It is possible to now understand what started gambling on sports in the USA. 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 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.