Interest in all kinds of online sports betting is continuously on the rise. In the US, gamblers had bet over $65 billion on sports from 2018, when the Supreme Court repealed a federal ban on gambling, to the end of 2021. More than 20 states opened doors to sports betting at that time.
Online Bets are Among the Most Popular
Nevada has taken a back seat to New Jersey regarding the total number of sports bets made monthly. In June, bets in the Silver State were only 15% of the total wagered nationwide. Online bets account for an increasing portion of the funds being wagered on sports.
FanDuel and DraftKings are the most prominent players in the online gambling market. Data of VIXIO Gambling Compliance shows they cover almost four-fifths of online sports betting nationwide along with a third operator. FanDuel’s market share is almost twice that of DraftKings.
According to a prediction by Goldman Sachs, online sports betting could gain two-fifths a year in the next ten years. Investors have noticed this. In 2020, BETZ’s exchange-traded fund, which has a few online gaming providers in its portfolio, has grown more than 100% as fast as the SP500.
An Onslaught of Advertising
Sports fans can expect a surge of online betting ads throughout the season. Recently, it became possible to run betting-related ads during official NFL broadcasts. Cash flow is expected to be huge, not unlike a trend back in 2015, when DFS commercials dominated the small screen.
More and More Younger Bettors
The legalization of sports betting has attracted younger bettors in droves. A 2018 study showed potential gamblers were younger and earned less than current ones. In a bid to draw new players, the best sports betting sites are hyping their offerings on social networks, sports broadcasts, and everywhere else they can.
Building a Market Share
Cash bonuses and can’t-miss promotions never fail to generate a market share. These reach a peak in advance of significant sporting events like the Super Bowl.
Last year in Michigan, FanDuel launched an unforgettable promotion to attract new users: almost +160 points for the Detroit Pistons against the Lakers. As expected, the favorites won, and FanDuel made payouts of $2 million. However, there was no need for disappointment. Almost 50,000 people signed up with the sportsbook after that, each one depositing around $50 on average.
According to sportsbooks, the market is maturing faster than expected. The pandemic did a lot to further this tendency. Despite the coronavirus-provoked disruption in sports in 2020, 14 states raked it over a billion in revenue, proving that sports betting could bring about economic growth in new markets.
Sports Betting and the Government
State governments were quick to recognize this. By 2023, this revenue is predicted to grow sixfold, research by consulting firm Eilers & Krejcik Gaming shows. According to researchers, revenue will exceed $19 billion a year if all states legalize sports betting.
Tech entrepreneurs and media companies are racing for a share of the pie. Chris Grove, a partner at Eilers & Krejcik, said in an interview with the New York Times:
“In a mature market like the United Kingdom, a mid-tier bookmaker will spend about 40 cents of every dollar acquiring and retaining new customers. Here we’re seeing a 100 percent or more spend on each buck.”
New York Gov. Andrew M. Cuomo predicted sports wagers could bring his treasury hundreds of millions and has been very enthusiastic about betting legalization. He added that the state should have pronounced control over these sites, comparing sports betting to a state lottery.
While developments in individual states vary, there is one general tendency. Sports betting will strengthen its grip on US culture and go mainstream with time.