The followings are the second part of the historical milestones of online sports betting in the USA.
1951: U.S. Levies 10% Tax on Sports Book
The sports betting industry recorded a bit success in 1951 when the U.S. federal government imposed a 10% tax on all sportsbooks’ gross revenue. The tax imposition proved unmanageable for bookmakers and completely drove many out of business. However, this was a factor leading to more illegal sports books run by organized crimes.
1961: The Wire Act Launched
As organized crime developed sports betting into such a profitable business, John Fitzgerald Kennedy issued new tools for law enforcement to combat the problem. Notably, he launched the Wire Act in 1961 to ban the use of wire communication such as phones and telegrams to pass on information pertaining to sports betting.
1974: Federal Government Cancels 10% Tax
The federal government rescinded the 10% tax that was hindering legal sports book in Nevada in 1974. Nevada Senator Howard Cannon proposed the tax reduction to 2% would increase the number of sports books, and the federal government would collect more money than they did with the 10% tax. The new regulation allowed sports betting and led to a flourish of betting operators in Las Vegas.
1975: First Sportsbook Launched in Vegas Casino
In the three quarters of the 20th century, the first sports book was launched inside a casino at the Stardust. The sports book was run by Frank Rosenthal and inspired for Martine Scorsese’s iconic film Casino.
1979: First Casino on Native American Reservation
In 1979, the first indigenous group in America named Seminole Tribe opened a casino. Although they did not feature sports betting right away, it proved a pivotal step towards widespread sports betting in the time to come.