‘The busiest cornfield in America’: A curious case for legalised U.S. sports betting
When analysing their data to help lawmakers understand the unmet demand for sports betting in Nebraska, geolocation security and fraud prevention specialists, GeoComply, noticed unusually high betting activity in a remote cornfield in Iowa.
No casino in sight, no bar or sports venue, just an unassuming, windswept cornfield. So, what exactly is happening here? Are gangs of farmers trying to subsidise their increasingly dire income between harvests, or are aliens taking a punt on the NFL after a long day carving out crop circles?
Sadly, it is neither of these things, but the real story still makes for a compelling look at the current uneven regulatory landscape of online sports betting across the U.S.
Love thy neighbour
Online sports betting has been legal in Iowa since 2019; however, in neighbouring Nebraska, bets can only be placed in a handful of retail sportsbooks across the state, making it one of the last states to embrace regulated online gambling.
To get around the issue, Nebraskans are travelling across the border to place bets on their mobile devices in Iowa. And it has become such a routine activity, they’re just parking up and doing it quick and dirty in a cornfield. Usually, punters will park at a convenience store or at least sit in a bar or restaurant, but this unconventional venue seems to be as good a place as any.
Senior Advisor to GeoComply, John Pappas, told SiGMA News, “There are literally lines of cars parked up next to the field. People pull into the shoulder, stop their cars, put on their hazards, place their bets, and then promptly turn around and drive back to Nebraska.”
The people behind the data points
Curious to transform the data from sterile dots on a map to actual entertainment-seeking humans, Betting Hero, an activation and research leader in the sports betting and iGaming industry, put boots on the ground and headed to the cornfield to talk to the hard-shoulder phone-holders in person. What are they betting on? Why aren’t they choosing unregulated betting apps that are accessible from the comfort of home? And what do they think about the current licensing laws in Nebraska?
“I heard about this spot from a buddy who comes here,” said one anonymous sports fan. “I didn’t really believe him at first, but then I pulled up and there was just a line of cars here on the first exit into Iowa.”
Another customer chose to head to the neighbouring state for the increased options, “The legal books are much better than the unregulated ones. The combinations, the Same Game Parlays. You can’t do that offshore, for example.”
The convenience is also an obvious draw, “I’ve gone to a physical sportsbook before where you wait in line, it’s time-consuming, you print out the ticket, you have to go there to cash your rewards as well, but the ability to drive over here, park, browse at your own leisure, place your bets, and then leave, it’s much more convenient.”
The peace of mind that legal sports betting brings is another motivating factor, “I’ve used unregulated sites before, but I don’t anymore because I just don’t trust them. You never know, right? They go belly up or don’t want to pay out; you’ve no legal parameters to do anything. At least with the legal books you can come back to them, versus something overseas where you’re kinda outta luck.”
Betting Hero asked the group if Nebraska should legalise sports betting, “Absolutely. I mean, whether you agree with it or disagree with it, it’s a huge revenue stream for the state. Omaha, in particular, has a huge issue with property taxes. So, if you’re looking for a new revenue stream, there’s one staring at you in the face.”
Have app, will travel
Ernie Ropas, Senior Director of Product and Research at Betting Hero, spoke to SiGMA News about how their data shows other ways customers are getting around the uneven legal landscape in the U.S.
“A surprising amount of bettors know exactly which states have legal online sportsbooks and which don’t; it’s very interesting.
“There are truck drivers who make sure they drive through Iowa or another legal state, specifically so they can place bets on their trip. Others who travel for work will intentionally book connecting flights through legal states in order to access regulated sportsbooks.”
GeoComply airport betting activity, 2024:
If customers are willing to go to these lengths to place a bet with regulated operators, then some argue that legalising online sports betting across the board will not only protect players but also bring some much-needed revenue to the unregulated states.
“It’s consumer protection that you could be providing to people in your own state,” explains Pappas.
“As it stands now, each state has different rules. Some don’t permit betting on college sports, some do. Some put a deposit limit on the use of credit cards, some don’t. So, if your desire is to have people within your state operating under your rules, then you need to create the rules. Otherwise, whether you want to believe it or not, people are going to travel to another state, and this is revenue that you’re losing out on.”
Currently, according to DraftKings’ help page “You can log into and deposit funds to your account even if you are physically located in a non-permitted jurisdiction. You can also view placed bets and promotions in a non-permitted jurisdiction.” However, “You cannot place bets while physically located in a jurisdiction that does not allow sports betting.”
So, if all people are looking for is the ability to open an account and push that bet button, then it’s no real surprise that they are finding ways to make it happen, and if the Cornfield Crew is anything to go by, this is likely to continue.
The switch is almost instant
The data also points to customers overwhelmingly preferring legal books, with the recent legalisation in Massachusetts an example of how quickly the shift happens.
“When online betting became legal in Massachusetts, customers moved from offshore to onshore almost overnight,” explains Ropas. “It’s very quick; 57 percent of sportsbook users switched to a legal book straight away, with 73 percent having made the move after only a month.”
The case for legalisation
Supporters of legal online sports betting argue that it brings significant economic and regulatory advantages. One of the primary benefits is the generation of tax revenue, which states can then use to fund public services. While critics claim the revenue is insufficient compared to other heavily taxed industries like alcohol and tobacco, supporters counter that a 20% tax on the industry’s $10 billion annual revenue is still a substantial contribution.
Another major argument favouring legalisation is the ability to regulate the industry, thereby offering consumer protections. Before legalisation, sports betting was largely an underground activity, making it difficult to monitor and prevent fraudulent practices. By bringing it into a regulated framework, states can ensure fair play, protect consumers from exploitative practices, and provide support for problem gamblers.
Across the pond, at the British Betting and Gaming Council’s recent annual general meeting, there were implications that the bigger the gambling industry, the more reliable it is, with a growing industry contributing proportionately to consumer safety. Shadow Secretary of State Stuart Andrew said that alongside generating substantial economic value, operators and bookkeepers “also contribute to the well-being of our communities, ensuring that the betting and gaming industry operates responsibly and ethically.”
Supporters also argue that gambling addiction is not unique to sports betting; it exists in other forms of gambling, such as casinos and lotteries. So, rather than banning sports betting outright, proponents suggest a focus on responsible gambling initiatives and targeted support programs for those at risk.
The case against legalisation
On the flip side, opponents of legalising online sports betting argue that it has disproportionately harmed vulnerable populations. Some suggest that legal gambling leads to increased financial distress, with one report showing that for every dollar spent on sports betting, households reduce their savings by two dollars. The effects being particularly severe for lower-income and financially precarious households, where gambling-related debt and bankruptcies have risen.
A further argument cites the industry’s exploitative nature with research suggesting that a small percentage of gamblers account for the majority of betting revenue. This implies that the industry profits primarily from problem gamblers and argues that the economic burden placed on these individuals and their families outweighs any tax benefits the state may receive.
Additionally, opponents contend that legalisation has failed to eliminate illegal sports betting. A survey by the UMass School of Public Health and Health Sciences indicated that many bettors in Massachusetts continue to use unregulated platforms, undermining one of the core justifications for legalising the practice. However, it’s important to note that the participants in this particular report weren’t technically randomly selected as they were paid to take part, a strategy that can create behavioural bias.
So hot right now
Of course, our Cornfield Crew and Massachusetts Ship-Jumpers would have something to say about that last point, especially given their evident enthusiasm for legal books. Additionally, supporters of legalised online sports betting believe that much of the data quoted in the referenced studies is inconclusive as the industry is still young.
But this is why unbiased geolocation data is so important; you could fry an egg on those heat maps, and the Nebraska defectors were not figments of Betting Hero’s imagination.
Humans gonna human
In his book, Roll the Bones: The History of Gambling, historian David G. Schwartz claims that gambling could date as far back as the Palaeolithic period, evidenced by the archaeological discovery of knucklebone “dice”. Given the innate human need to take a risk, whether as a form of entertainment or for material gain, I think we’re all in agreement that gambling is not going anywhere anytime soon.
So, if the issue is not with people participating in games of chance but protecting them from the harm that could befall them, then why are the opponents of legalisation comfortable with their citizens betting in cornfields or through an offshore company with dubious regulations and zero accountability? If you are so concerned for their well-being, why tease them with fundable accounts and juicy promotions?
Why let them stand with their wet little noses pressed against the neighbour’s window watching them play with all the best toys? GeoComply and Betting Hero’s data makes for a convincing argument that humans are gonna human no matter how hard you try to steer them toward your brick-and-mortar establishments. With online sports betting now legal in 30 out of 51 states, perhaps it’s time to fold and use that handsome tax boost to build something safe, supportive, and enjoyable. It’s that, or we’re all moving to Iowa.
