To learn what started gambling on sports one has to first examine the historical past of sports gambling in the US. The US had a long history of allowing some kinds of legal gambling and even illegal betting to a certain degree. Political control and scandals regarding gaming interests have ended in selected backlashes which have lead to prohibition or regulating sports gambling. Standards and laws relating to sports gambling have kept altering.
Nelson Rose explains these adjustments in law as three waves. The 1st wave was in the colonial era that lasted up until the mid 1800s, the second wave started at the end of the Civil War and lasted till the early Twentieth century and the 3rd wave commenced during the Great Depression and it’s 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. Afterwards it had been 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 merely 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 being a solution from economic problems and to help the colonies. It became a civic responsibility and proceeds were utilized to establish a number of the first prestigious universities, build churches and even libraries. Lotteries continued to be popular right to the early Nineteenth 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 an organized and legitimate gambling area in 1800s. The grand river with its riverboats was 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 were 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 concluded in prohibition of gambling.
The Gold Rush in California set off a tremendous surge in the kinds of gambling and San Francisco became the new gambling capital in the USA. During 1849 and 1855 gambling spread widely and by 1850 California and many 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 many 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 was a preferred tourist destination. Regardless of its illegality sports gambling became quite popular and already is a high dollar industry.