Betting on the outcome of competitions dates back thousands of years. In the United States, the path of gambling from a total ban to almost nationwide legalization has been a long, winding road, marked by high-profile scandals and a constant search for a balance between morality and the public purse.
Egyptian dice, Olympic wagers, and Roman chariot races
Sports and betting evolved side by side long before the emergence of bookmakers. Even ancient civilizations saw betting as a natural accompaniment to any competition, and this tradition later carried over into European practices and American regulation. The timeline is striking:
- In 4000–3000 BCE, the inhabitants of Ancient Egypt bet on dice, board games, chariot races, and fencing.
- Around 800–700 BCE, bets were placed during the ancient Olympic Games.
- In ancient Rome, betting on games and races was commonplace; authorities periodically imposed bans, but during festivals gambling entertainment were not only permitted but even encouraged.
The history of sports betting in Africa
Interestingly, in Africa the beginning of the era of sports betting is often linked to colonization. Europeans did indeed bring a culture of organized sports betting to the continent. Before that, Africa had only informal, ad hoc bets between individual spectators.
Accordingly, it is not surprising that the modern period of development of sports betting is also closely connected with Europe, but already in terms of regulation. Such advanced African markets as Kenya, Nigeria, and South Africa adopt regulatory frameworks from developed countries, including the United States.
The same is done by those countries that are only beginning to develop regulatory policy. Thus, according to data from Rwanda Betting Sites, legislative norms on gambling and sports betting in the country are based on the regulations of several European countries at once – the United Kingdom, France, and the Netherlands.
Today, sports betting in African countries is done mostly online, with a strong focus on mobile technologies.
King James I’s lottery and funding for Jamestown
In 1612, King James I announced Britain’s first lottery, which became a key funding mechanism for the Jamestown colony. Participants bought tickets, which were placed in a barrel, from which the winner’s name was then drawn.
Lotteries quickly became a driving force in the development of young America. The funds raised were used to build the first public buildings, colleges, roads, canals, and churches. In 1776, the First Continental Congress launched a lottery across the Thirteen Colonies to fund the Revolutionary War.
Racetracks, the frontier, and tacit licenses
British settlers brought with them a passion for horse racing. In 1665, the first racetrack opened on Long Island in New York, and since then horse racing has continued uninterrupted ever since, making it a rare long-running exception among regulated forms of gambling. Westward expansion fueled the popularity of poker and card games. Illegal gambling dens proliferated, and authorities often turned a blind eye to them, considering cards “the lesser evil” compared with street brawls. Some cities, such as San Francisco, issued limited licenses to bolster the public coffers.
Three waves of legalization, according to I. Nelson Rose
Professor I. Nelson Rose proposed a three-wave historical model, each of which ended in a rollback after another round of abuses.
From 1787 to the mid-1830s. Gambling was formally banned, but lotteries were allowed for revenue. Public and private lotteries proliferated, and with them scandals grew: sometimes the drawings never took place at all. By the end of the 1830s, the constitutions of a number of states, including Nevada, California, and Texas, codified an outright ban on lotteries. In Nevada, it remains in force to this day. At the same time, the steamboat era gave rise to the phenomenon of riverboat gamblers, notorious for cheating.
From the 1840s to the 1890s. After the Civil War, lotteries were revived as a way to fund Reconstruction in the South. Casino-style gambling flourished on the frontier, although many games were blatantly rigged in the operator’s favor. Poker stood out against this backdrop because, at least in theory, it gave every participant equal odds. As municipal governments took shape, laws against casinos appeared. The ending was familiar: the Louisiana Lottery became the epicenter of a scandal when its organizers were accused of trying to bribe the state legislature.
From the 1900s to the present. The third wave marked a shift toward legalization. In 1964, state-run lotteries returned. Nevada cemented its status as the gambling capital, followed by Atlantic City in New Jersey, and then casinos appeared in many states. Despite acknowledging the social risks, the promise of budget revenue consistently outweighed them.
An almost nationwide reality
As of 2022, legal forms of gambling existed in every U.S. state except two: Utah and Hawaii.