The Rise of the Sports Betting Industry - is it poised for a huge jump in 2024?

The act of betting on the outcome of a sporting event is known as sports betting and is a kind of gambling. Usually, bets are placed through sportsbooks, sometimes referred to as bookmakers or bookies. Sportsbooks are available both online and in physical locations like casinos or betting shops. The act of betting on the outcome of a sporting event is known as sports betting and is a kind of gambling. Usually, bets are placed through sportsbooks, sometimes referred to as bookmakers or bookies. Sportsbooks are available both online and in physical locations like casinos or betting shops.

In the USA, almost 19 million individuals had bet online as of March 2022, and it is anticipated that 23 million people would have done so by the end of 2023. It's obvious that the expansion will keep doing so as more states permit sports betting. (Source:- NASDAQ)

Related: How to calculate and read sports odds

When the Professional and Amateur Sports Protection Act (PASPA), which had prohibited professional and college sports betting in the United States outside of Nevada since 1992, was invalidated by the Supreme Court in May 2018, the floodgates for the sports betting business were opened.

The legalization of sports betting

The following four years saw the legalization of sports betting, which is now available in 31 states. Sports betting has now been made legal in five additional states, although the law has not yet gone into force nationwide. The betting market, for instance, made its debut in Ohio in January 2023. (Source: - Grid)

According to a recent Pew Research Center poll, around one in five American people (19%) say they individually wagered money on sports in some form during the last 12 months, whether it was with friends or family, in person at a casino or other gambling establishment, or online via a betting app.

Online sports betting is a growing trend in the USA. Out of all sports bettors, 49% are regular or occasional online sports bettors. The forecast number of online sports betting is around 16 USD billion by 2026. (Source:- M&C Saatchi Performance) .

Public awareness & perception

Overall, 56% of respondents claim to have read or heard a lot (12%), a little (44%), or nothing at all (44%) about the fact that sports betting is now legal in much of the nation. 

By demographic group, awareness of legalized sports betting varies. Males (69% vs. 44%) are significantly more likely than women to claim to have read or heard at least a little about it. The categories more likely to have read or heard about it include those in upper-class homes, those with college degrees, and Americans over the age of 50.

More Americans than other Americans said they personally have gambled on sports in the previous year if they have read or heard a lot about the widespread legalisation of sports betting in the U.S. Over half (46%) of these People claim to have gambled on sports in some capacity in the previous year, compared to 23% of those who have read or heard only a little about the legalisation of sports betting throughout most of the nation, and only 9% of those who have heard nothing at all about it. (Source: - Pew Research)

Regardless of how much they have heard or read about it, most persons (57%) believe it will have little to no impact on society, while 34% believe it will have a negative impact. Just 8% of people feel it is good for society.

On a different issue, the public is marginally more divided on whether the broad legalization of sports betting is good or harmful for sports. The majority of Americans (49%) believe that the legalization of sports betting throughout most of the nation is neither good nor bad for sports, while 16% think it is. A third believe it is harmful to sports.

In comparison to individuals under 50, Americans 50 and older are more inclined to believe that legalized sports betting is harmful to society (41% vs. 27%) and sports (38% vs. 29%). Higher-income families and those with college degrees are also more inclined to believe that the broad legalization of sports betting is detrimental to society and the sports industry. (Source: - Pew Research)

The Center's study, which was conducted July 5–17 among 6,034 individuals, found that Americans most frequently wager on sports with friends or family, despite the expansion of commercial sports betting in the aftermath of the Supreme Court's 2018 decision. In the last 12 months, 15% of individuals claim to have wagered money on sports with friends or family, whether it was in a private betting pool, fantasy league, or casual wager. Lower percentages (8% and 6%, respectively) report having placed a wager on a sporting event in the last year at a casino, racetrack, or betting kiosk in person. Around 19% of individuals have wagered money on sports overall in any of the three ways. (Source: - Pew Research)

Bettors Demography

Males are more likely than women (24% vs. 15%) and persons under the age of 50 (22% vs. 17%) to report having placed a wager on a sporting event in the previous year. Also, there are variances based on race and ethnicity: Asian American adults (10%) and White adults (18%) are less likely to report doing so than Black adults (27%) and Hispanic people (24%) do.

By educational level or family income level, self-reported sports betting does not differ much. For instance, 20% of non-college graduates and 18% of college graduates claim to have placed a wager on a sporting event in the previous year. Those in homes with higher incomes (22%), medium income (19%), and lower-income (19%) all report having placed a sports wager in the previous year.

Moreover, there is no discernible difference in terms of a political party: In the past 12 months, 21% of Democrats and independents leaning Democratic and 19% of Republicans and independents leaning Republican say they have wagered on sports in some capacity. (Source: - Pew Research).

The group of fans engages in sports betting in the U.S.

By professional sports, the percentage of American sports enthusiasts that gambled on sports changed in 2021. As per Statista, the majority of NHL (National Hockey League) fans—62 percent of them—said they were interested in sports betting. Despite the National Football League's (NFL) dominance in the United States, just 48% of NFL supporters said they were interested in betting on sports, making them the least interested among the fans of the other five sports leagues. Men are more inclined to gamble on sports when demographics of sports bettors were examined. Regardless of the betting provider, a 2021 poll found that the gender distribution of sports betting and fantasy app users in the U.S. was highly skewed in favour of males. The proportion of American sports bettors varied by age and ethnicity. The bulk of sports bettors was typically White and aged 26 to 35. (Source: - Statista)

Legalization of Sports betting across states

In comparison to the legalization of marijuana, the number of states that allow sports betting in the United States has increased gradually but swiftly. While some states' legislative sessions end early in the year, others continue all year. Also, there are "special sessions," which allow new states to legalize at certain times throughout the year.

Sports Betting Activity - Legal Landscape by State

Where and how to legally wager on sports in the United States are shown in the table below.

Following are the development in some key states where legalization is pending or in-process

Alabama

Possible action in 2023.

Alabama is one of the few remaining states without a lottery.

A bill that would have permitted a state-run lottery and mobile wagering looked like it had a chance in 2022, but lawmakers ended their session without voting on it. A robust market would be a difficult task in a state with only three tribal casinos and no lottery to run online betting.

Alabama may eventually opt to go the same route as neighboring Tennessee, which runs an exclusive online market.

Passing such a bill remains a difficult task in a state with strong gaming aversions.

Alaska

No movement.

Alaska is pretty much nowhere on sports gambling. The 49th state might actually be the 49th to legalize it, if ever.

California

2024-2025 Possible.

California’s November election featured two different ballot proposals to legalize sports betting, but both fell way short.

So sports betting will have to wait a few years in California, if not longer. 

The consensus opinion seems to be that the tribes, who have immense influence in the state, can just wait out operators like DraftKings and FanDuel. They don’t need sports betting and will want to do it on their terms.

Georgia

A new bill proposed for 2023

Popular support is on sports betting’s side, but it’s not clear if that’s enough to overcome entrenched anti-gambling sentiment in the statehouse.

Georgia lawmakers ended their 2022 session the same way as their last two: with a failed last-minute push to legalize sports betting.

Polls in Georgia say that voters are in favor of legalized sports betting, and executives from their major sports teams have also been vocal about support. Georgia’s inched closer to passing a bill in each of its last go-arounds, though Republicans in the Senate remain opposed to new gambling laws.

Hawaii

Longshot, but 2024-25 is possible.

Hawaii is one of just two states currently without any major gambling entity of any kind. So it’s an uphill climb to get legal betting.

But there was a little bit of action in January of 2022, when Rep. John Mizuno introduced a bill.

The regulation session ended in May without very much traction on the bill, though lawmakers may still opt to advance it in upcoming sessions.

Idaho

No movement.

State laws as written are currently against gambling, save for horse racing. The state doesn’t allow fantasy sports, either and there’s been little political appetite for legal sports betting.

Kentucky

Possible action in 2024.

Kentucky came extremely close to legalizing sports betting in 2022, though an effort to give racetracks control over retail and online markets fell short at the last minute.

The bill passed the House but couldn’t find enough Republican support in the Senate, despite support from Majority Leader Damon Thayer (R).

Gov. Andy Beshear has been a big proponent of legalizing sports betting and is likely to sign any version that makes it to his desk.

The next chance to pass a legalization bill is likely 2024, as odd-numbered years require a three-fifths majority vote during a shorter 30-day session.

Minnesota

Possible action in 2023.

Minnesota came extremely close to legalizing sports betting in 2022 and lawmakers will likely take it up again in 2023.

A bill that would have given the state’s native tribes exclusive control over online and retail betting passed the House, but fell apart after Senators amended it to include racetracks and professional sports teams.

The legislature adjourned for the year without the Senate voting on the bill.

Missouri

A new bill proposed for 2023

Missouri has two new sports betting bills in 2023 and there’s a desire to get something done after nearly getting things across the finish line in 2022.

At one point Missouri looked like the surest bet to pass a sports betting bill in 2022, as lawmakers openly competed with their counterparts in Kansas to get there first.

The House managed to pass a bill that would have authorized up to 39 sportsbooks, but it fell apart somewhat unexpectedly in the Senate and never recovered despite a last-minute push.

Oklahoma

A new bill proposed for 2023.

State Rep. Ken Luttrell filed a new sports betting Bill in Oklahoma and Sen. Bill Coleman joined as its senate sponsor. The bill would allow tribes to add sports betting to their casino operations.

Still, legal betting remains somewhat of a longshot in Oklahoma.

Oklahoma gaming is dominated by Native American entities and most seem disinclined to agree to sports betting until other key issues with the state government are resolved. Two tribes struck sports betting deals in 2020, but those were later invalidated, part of a larger conflict between competition gaming interests and the government.

A court ruling that renewed a previous compact between the two entities gives tribes the upper hand in negotiations with the government. Sports betting, which makes up a small fraction of most casino’s revenues, is a comparatively minor issue as billions of gaming dollars are up for further negotiations.

South Carolina

A new bill proposed for 2023.

South Carolina’s flirted with legal sports betting but has been unable to pass a bill.

A pair of bipartisan lawmakers introduced a bill in 2022 that would have allowed up to 12 online sportsbooks, but it didn’t gain much traction. A similar effort failed in 2019. In late 2022, Democratic Rep. J. Todd Rutherford proposed a constitutional amendment that would let residents vote on the legalization of sports betting.

Gov. Henry McMaster opposes sports betting, so even if the legislature managed to pass a bill it’d face another difficult hurdle.

Texas

A new bill proposed for 2023.

Texas would appear to be an unlikely sports betting adopter, but shifting demographics and investment from outside gaming interests make it a possible target in 2023.

Texas lawmakers debuted new bills in early February that could legalize betting later this year or in early 2024.

Last year’s Democrat-backed bill got almost no traction in the GOP-heavy state senate, so having a Republican like Kolkhorst to carry this one could make a big difference.

The Lone Star State is still somewhat of a longshot, but some momentum in the 2021 session (the legislature only meets regularly in odd-numbered years) could help move Texas past its long-standing gambling opposition in 2023.

Utah

No movement

Sports betting is likely never coming to Utah, the only state in the continental U.S. without any major legal gaming form.

Vermont

New bill proposed for 2023.

Rep. Matthew Birong introduced a new sports betting bill in February of 2023 that would allow 2-6 online sportsbooks in Vermont.

Lawmakers have for years pushed sports betting in the Green Mountain state, but efforts to legalize haven’t gained much traction.

A bill made it to a Senate committee in 2022 that would have legalized retail and online betting under state lottery control, allowing up to six online sportsbooks. It did not however receive a vote in either the Senate or House.

With New York and Canada now legal and Massachusetts moving towards legalization, Vermont will soon be surrounded by sports betting, which may be what finally gets it to the finish line.

Market size 

Gross gaming revenue 

The gross gambling yield in the U.S. reached almost 53 USD billion in 2021, growing significantly over the 2020 figure which was impacted by the coronavirus (COVID-19) pandemic. Slots generated the largest share of revenue in both 2020 and 2021 when segmented total gambling revenue in the U.S. was examined. Slot machines are frequently found at physical venues like casinos, although while being well-known as places to gamble, casinos are not permitted in all states. In 2021, there were 466 commercial casinos in the United States, while there were 515 tribal casinos.

Legal Sports Betting Market in the USA

The United States is the third-largest market for sports betting in the world. In 2021, the market for sports betting in the US was valued at 3.7 USD billion, or 4% of the total industry. From 2017 through 2021, the US sports betting industry expanded at a CAGR of 96% from 0.2 USD billion in 2017. This was primarily due to the rise in betting activity demand that had been observed over the previous few years, which then increased exponentially after the pandemic as people became more stingy as a result of being compelled to stay inside for the majority of 2020 as the country was shut down with numerous lockdowns and government restrictions. 

Sports betting in the US had a significant surge of 46% during the early part of the year 2020 when the COVID-19 outbreak had a significant global influence on the industry. Later, once the limits were loosened, the market in the US grew by a staggering 180% in 2021, adding $2.4 billion to its size. Consequently, the US overcame Germany and Italy to take third place in the global sports betting markets.  (Source:- Global Data)

Top 5 Sports Betting Operator/ Sports Betting Service Providers

The followings are the top 5 sports betting operators or Sports Betting Service Providers in the USA:-

DraftKings Sportsbook

DraftKings Sportsbook is one of the most well-known brands in the whole sports betting industry. Due in large part to its amazing betting incentives and competitive betting odds, DraftKings, pioneers in the daily fantasy sports (DFS) market, has grown into a major sports betting site.

Presence in States: Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, West Virginia, and Wyoming.

FanDuel Sportsbook

Together with DraftKings, FanDuel Sportsbook is without a doubt one of the most popular sports betting websites and applications in the US. Mobile betting is a breeze using FanDuel's fantastic sports betting app, and the FanDuel Sportsbook incentives are regularly among the finest in the business.

Presence in States: Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wyoming.

Caesars Sportsbook

Because to its vast experience in the real-world casino sector, Caesars has become a reputable sports betting site and app among both new users and seasoned sharps.

Presence in States: Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wyoming.

BetMGM

For many new sports bettors and regular sports bettors, BetMGM's superb website and app are a great option. BetMGM is a seasoned casino industry veteran with a major presence in Las Vegas. The business has long been a cornerstone of the sports betting industry & sports betting service and will most likely remain for many years.

Presence in States: Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wyoming.

Barstool Sportsbook

The creator of Barstool Sports, Dave Portnoy, developed Barstool Sportsbook as a sports betting brand unlike any other. It enjoys a cult following. Due to its unique betting possibilities and a plethora of funny characters, Barstool Sportsbook is a terrific alternative for American sports bettors.

Presence in States: Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia

There is one new sports betting operator – Pointsbet, which is quickly becoming popular among sports bettors in the USA. The only authorized online sportsbook in the US with the audacity to try something new is PointsBet. The distinctive high-risk, high-reward PointsBetting model of the online sports betting app sets it apart from competitors.

Along with a variety of classic betting options, PointsBet also offers a top-notch mobile app that is surprisingly effective at introducing new customers to the concept.

bet365 is an international sports betting operator which is having a significant presence in the USA. Bet365 is currently legal in Colorado, New Jersey, Ohio, and Virginia for anyone aged 21 and older.

Another prominent sports betting operator is TwinSpires.  TwinSpires offers to wager on horseracing, sports, and online casino. TwinSpires Sports or Casino are available in Arizona, Indiana, Michigan, Mississippi, New Jersey, Pennsylvania, and Tennessee.

BetAmerica is another sports betting operator that offers sports betting, horse racing betting, poker, and casino games to sports bettors across the United States. There are eight states where BetAmerica is permitted to operate such as Arizona, Colorado, Indiana, Mississippi, Michigan, New Jersey, Pennsylvania, and Tennessee.

Conclusion

The world of sports betting is constantly evolving. The sports betting industry will experience significant changes over the next few years as it tries to innovate and draw in a tonne of new customers. These changes will affect everything from the types of sports bets to how bets are placed through customized or white-label sports betting software to how information is viewed.

Most of them are just predictions for the future, and part of what makes the future so intriguing is that no one can ever know what it will bring. Twenty years ago, smartphones were science fiction, yet today we can't imagine living without them, and they've revolutionized sports betting.

In the upcoming years, the market for sports betting is expected to increase rapidly. Technology is a crucial component of the puzzle, but it is not the entire picture. It will require careful strategic planning to effectively combine lessons learned and resources from mature economies while also recognizing the uniqueness and adaptability of the gross revenue betting business.

References

https://www.grid.news/story/economy/2022/09/08/sports-betting-a-hugely-popular-multibillion-dollar-industry-is-poised-to-become-an-american-epidemic/

https://www.businessinsider.in/sports/news/how-sports-betting-is-changing-the-media-industry-in-the-us/articleshow/88195949.cms

https://www.theguardian.com/sport/2022/may/13/sports-gambling-125-billion-anniversary

https://frontofficesports.com/sports-betting-industry-just-set-a-quarterly-revenue-record/

https://www.legalsportsreport.com/sports-betting/revenue/

https://www.globaldata.com/data-insights/travel-and-tourism/market-size-of-the-sports-betting-industry-in-the-us/

https://morningconsult.com/2022/01/20/sports-betting-brands-usage-fanduel-draftkings/

https://www.sportspromedia.com/from-the-magazine/us-sports-betting-market-gambling-revenue-states-2021-data/?zephr_sso_ott=4hW5IU

https://www.forbes.com/sites/willyakowicz/2023/01/09/where-is-sports-betting-legal-america-2022/?sh=4fd0549f386b

https://www.americangaming.org/research/state-gaming-map/

https://www.investopedia.com/top-sports-betting-stocks-5216133

https://sportshandle.com/sports-betting/

https://www.nasdaq.com/articles/sports-betting-industry-outlook-and-trends

https://www.pewresearch.org/fact-tank/2022/09/14/as-more-states-legalize-the-practice-19-of-u-s-adults-say-they-have-bet-money-on-sports-in-the-past-year/

https://www.statista.com/topics/8581/sports-betting-us/#topicOverview

https://www.forbes.com/sites/willyakowicz/2023/01/09/where-is-sports-betting-legal-america-2022/?sh=4fd0549f386b

https://www.actionnetwork.com/news/legal-sports-betting-united-states-projections

https://sportshandle.com/best-sports-betting-sites/

https://www.nj.com/betting/online-sports-betting/best-sports-betting-sites-usa.html

https://www.sportsbettingdime.com/us/

https://www.statista.com/topics/1368/gambling/#topicOverview

The fastest growing social betting app

Sign up Download app