What started gambling on sports
To understand what started gambling on sports one has to first examine the history of sports gambling in the US. The US had a long history of allowing certain types of legal gambling and also illegal gambling to a certain degree. Political control and scandals regarding gaming interests have led to certain backlashes which have resulted in prohibition or regulation of sports gambling. Standards and laws relating to sports gambling have kept changing and Professor I.
Nelson Rose describes these changes in law as three waves. The first 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 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 possession of dice, cards, gaming tables etc were outlawed. Later on it was allowed as long as it was not 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 as it involved risk taking, high expectations and opportunism.
Eventually all colonies used lotteries as a solution out of financial problems and to benefit the colonies. It became a civic responsibility and proceeds were used to establish 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 popular and the Long Island built the first race track in 1665. Casino gaming started to emerge slowly as roadhouses and tavern began to allow card games and dice.
The Lower Mississippi Valley became an organized 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 the gambling capital. During the 1830s southern settlers turned against professional gamblers who were blamed for committing 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 finally led to prohibition of gambling.
The Gold Rush in California set off a huge increase 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 make most types of gambling illegal and lynching of 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 the numerous 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 honest. In 1978 casino gambling was legalized by New Jersey and Atlantic City became a popular tourist destination. Despite its illegality sports gambling became very popular and today is a billion dollar industry.