To understand what started gambling on sports one has to first examine the historical past of sports gambling in America. The USA has a long history of permitting some kinds of legal gambling and even illegal gambling to some extent. Political control and scandals concerning gaming interests have ended in selected backlashes which 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 3 waves. The 1st wave was during the colonial era that lasted till the mid 1800s, the 2nd wave started following the Civil War and lasted till the early Twentieth century and also the third wave commenced while in the Great Depression and it’s still continuing.
During 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 so long as it was not 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 as it involved high risk, high expectations and opportunism.
Ultimately all colonies used lotteries as a solution from financial problems as well as benefit the colonies. It was a civic responsibility and profits were utilized to create a number 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 first race track in 1665. Casino gaming started 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 with its riverboats became a major trade avenue for both wealthy merchants and farmers. New Orleans soon 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 seemed to be increasing attack of gambling especially lotteries and when operators absconded with the proceeds lottery scandals finally concluded in prohibition of gambling.
The Gold Rush in California set off a huge increase in the types of gambling and San Francisco was crowned the new gambling capital in the US. 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 types of gambling illegal and a number of professional gamblers were lynched. This prohibition drove gambling 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 USA. With all the many scandals within 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 preferred tourist destination. Regardless of its illegality sports gambling became quite popular and already is a billion dollar industry.