Visualizing the Forest Funding Gap Relative to Emissions
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Visualizing the Forest Funding Gap Relative to Emissions

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The following content is sponsored by The LEAF Coalition

The Briefing

  • Deforestation accounts for 10% of global carbon emissions
  • Deforestation receives just 2.2% of climate funding

The Forest Funding Gap

Climate change has been referred to as modern day civilization’s greatest challenge. And stopping deforestation is an important step in the battle to stop rising global temperatures. Yet, when you look at the amount of climate funding earmarked for deforestation, something doesn’t add up.

This graphic from The LEAF Coalition looks at the state of global deforestation and compares how much climate funding it receives relative to its global CO 2 emissions.

Deforestation’s Role in Global Emissions

Protecting our forests and protecting the climate are one in the same. In fact, the data reveals that tropical deforestation accounts for 10% of global CO 2 emissions.

What’s more, these levels of emissions exceed that of all individual countries except for the U.S. and China. Despite this, climate funding towards deforestation only accounts for $14 billion of the over $618 billion available, representing a small 2.2% slice of the total.

This is especially problematic when considering a forest’s carbon stock and carbon sequestration capabilities. Here’s how different forests across the globe compare when looking at gigatonnes of carbon stock.

Ecosystem Estimated Carbon Stock (Gt) Annual Loss Rate
Tropical moist forests 295 Gt 0.45%
Boreal forests 283 Gt 0.18%
Temperate broadleaf forests 133 Gt 0.35%
Temperate conifer forests 66 Gt 0.28%
Tropical dry forests 14 Gt 0.58%
Mangroves 7.3Gt 0.13%

A carbon stock or carbon pool refers to a system that can store carbon and take it out of the atmosphere. Forests are used to offset plenty of carbon emissions , and by some estimates, it would cost $25 billion for additional carbon offsets to match and compensate for unabated emissions.

This is crucial because unabated emissions are those who’s harm are not reduced from carbon reduction methods. While this may sound like a lot, it’s equivalent to just 1.5% of the profits from Fortune Global 500 companies.

Altogether, approximately 30% of global emissions are absorbed by forests each year. Despite this, 3.75 million hectares of tropical primary rainforest were lost in 2021, equivalent to 600 football pitches per hour.

Turning The Page

It’s practically impossible to effectively tackle climate change without addressing deforestation. The broader agriculture, forestry and other land use category (which includes deforestation) accounts for 21% of all global CO 2 emissions.

Swift action is required in order to slow deforestation and decelerate rising average temperatures. See how The LEAF Coalition , a public-private initiative, is accelerating climate action by providing results-based finance to countries committed to protecting tropical forests.

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Mapped: Legal Sports Betting Totals by State

In 2022, legal sports betting in the U.S. totaled over $93 billion. Which states saw the most and least wagers? (Sponsored post)

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U.S. map with states colored according to the growth in house prices from Q1 1991 to Q1 2022. Utah had the highest growth.

The Briefing

  • Legal sports betting reached over $93 billion in the U.S. in 2022.
  • New York State had the most wagers, with a total of $16.3 billion.

Legal Sports Betting Totals by State

Which states are driving the legal sports betting market, and which have not yet become major players? The answer is fueled by each state’s legalization status, population, and other factors.

In this graphic from Roundhill Investments , we show a breakdown of legal sports betting by state.

A State View of Legal Sports Betting

In 2022, sports betting was live in 31 states plus Washington, D.C. Betting activity is highly concentrated, with the top five states accounting for 57% of the total reported legal wagers.

State/District Legal Sports Wagers in 2022
New York $16.3B
New Jersey $10.9B
Illinois $9.8B
Nevada $8.7B
Pennsylvania $7.3B
Arizona $5.5B
Colorado $5.2B
Virginia $4.9B
Michigan $4.8B
Indiana $4.5B
Tennessee $3.9B
Iowa $2.3B
Louisiana $2.3B
Connecticut $1.5B
Maryland $981M
New Hampshire $892M
Kansas $719M
West Virginia $569M
Rhode Island $533M
Mississippi $532M
Oregon $498M
Washington D.C. $216M
Arkansas $185M
Wyoming $145M
Delaware $82M
Montana $51M
South Dakota $7M
New Mexico Legal, no data
North Carolina Legal, no data
North Dakota Legal, no data
Washington State Legal, no data
Wisconsin Legal, no data
Massachusetts Legal, became operational in 2023
Ohio Legal, became operational in 2023
Florida Legal, not yet operational
Maine Legal, not yet operational
Nebraska Legal, not yet operational
Alabama Not legal
Alaska Not legal
California Not legal
Georgia Not legal
Hawaii Not legal
Idaho Not legal
Kentucky Not legal
Minnesota Not legal
Missouri Not legal
Oklahoma Not legal
South Carolina Not legal
Texas Not legal
Utah Not legal
Vermont Not legal

New York State had the most legal sports betting, largely because it was the most populous state to allow online sports wagers so far. Notably, 1.2 million accounts were created in the first 10 days of legalization. New York also has multiple teams across all four major sports—football, basketball, baseball and hockey—which boosts local interest.

New Jersey took the second spot. The state challenged the federal ban against legal sports betting, winning their case in 2018. New Jersey has since rapidly established itself as a sports betting hub, thanks to its established gaming regulations, prime location near New York City and Philadelphia, and strong gaming and tech infrastructure.

Illinois had the third highest annual total, and beat its prior state record with $1 billion in wagers in October alone. One key factor was a change to the registration process in 2022, which allowed residents to sign up online rather than in-person at a casino. Not only that, the state is home to some popular teams including the Chicago Bulls, who have the third-largest social media following of any NBA team.

Smaller, and Not Yet Legal, Markets

South Dakota had the lowest legal sports betting of the states with reported totals. The state only allows in-person betting in the city of Deadwood and at tribal casinos, with the latter not reporting the total bets they receive. Online sports betting is not yet legal in the state unless the bettor is physically at a Deadwood casino.

Montana had the second smallest total bets. The state has a small population and no major league professional sports teams. Not only that, sports betting in the state is government-run rather than a competitive market. Like South Dakota, online bets can only be placed when the bettor is physically present at a retailer.

Notably, the most populous states of California, Texas, and Florida do not yet have legal and/or operational sports betting. Together, the three states represent 27% of the total U.S. population. Sports betting was initially legal in Florida but has been paused due to ongoing legal proceedings.

Expanding Geographic Reach

Legal sports betting has expanded significantly since the federal ban was lifted in 2018. However, 17 states have not yet legalized sports betting in any form, and some states could see growth from allowing online betting.

As more states proceed with legalization, the consumer base is likely to continue expanding. This creates a revenue opportunity for sportsbook operators. In fact, Goldman Sachs estimates that the total revenue opportunity could grow from $900 million in 2021 to $39 billion by 2033.

Looking for exposure to the growing sports betting industry? Explore Roundhill’s sports betting ETF, $BETZ .

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