To learn what started gambling on sports one has to first examine the historical past of sports gambling in the US. The USA had a long history of allowing certain types of legal gambling and even illegal betting to some extent. Political control and scandals concerning gaming interests have ended in selected backlashes that have lead to prohibition or regulation of sports gambling. Standards and laws pertaining to sports gambling have kept changing.

Nelson Rose explains these adjustments in law as 3 waves. The 1st wave was in the colonial era that lasted till the mid 1800s, the second wave started at the end of the Civil War and lasted up until the early Twentieth century and also the third wave commenced while in the Great Depression and is still continuing.

During the Colonial Era, diverse attitudes were enforced towards gambling. Puritan attitudes were adopted towards gambling and possessing dice, cards, gaming tables etc were outlawed. Later on it had been allowed so long as it was not a calling or trade except 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 risk taking, high expectations and opportunism. arbitrage betting online

Eventually all colonies used lotteries as a solution out of economic problems and to benefit the colonies. It became a civic responsibility and profits were used to establish a number of the first prestigious universities, build churches and also libraries. Lotteries continued to be popular right to the initial Nineteenth century. Horse racing was also popular and the Long Island built the very first race track in 1665. Casino gaming started to emerge slowly as roadhouses and taverns began to allow card games and dice.

The Lower Mississippi Valley became an organized and legitimate gambling area in 1800s. The grand river with its riverboats became 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 had been held responsible for committing crimes, debasing morals of society and endangering streets. During 1800s there was increasing attack of gambling especially lotteries and whenever operators absconded with the proceeds lottery scandals eventually led to prohibition of gambling.

The Gold Rush in California set off a huge surge in the kinds of gambling and San Francisco was crowned the new gambling capital in the USA. During 1849 and 1855 gambling spread widely and also by 1850 California and lots of cities had licensed gambling centers. But soon the Legislature made most types of gambling illegal and a number of 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 many 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 was a popular tourist destination. Despite its illegality sports gambling became quite popular and already is a billion dollar industry.