The regulated sports betting market in the United States has experienced tremendous growth since 2018. In September this year, it surpassed $10bn in last-twelve-month (LTM) gross revenue for the first time - hitting a key milestone barely five years after the U.S. Supreme Court ruling that allowed for sports wagering to expand beyond Nevada. Total revenue on a LTM basis reached an estimated $10.05bn last month, up from $9.95bn in August, according to Vixio GamblingCompliance projections based on state revenue data.
Since the 2018 Supreme Court ruling, the United States has become by far the largest legal sports betting market in the world. Four individual states – New York, Illinois, Ohio and New Jersey – also now rank among the top 10 largest globally, according to Vixio research.
What's Driving this Growth?
Continued market growth in 2023 is being driven by the recent launches of mobile sports wagering in Massachusetts, Maryland and Ohio, as well as secular growth in more established U.S. markets, offsetting general stagnation in revenue from retail sports betting.
What Does the Future Look Like for U.S Sports Betting?
After reaching the $10bn mark, there is a clear pathway for the U.S. sports betting market to hit $20bn as various major markets are yet to reach full maturity and state-by-state expansion continues, albeit at a more gradual pace, according to Vixio’s U.S. Sports and iGaming Forecasting Dashboard. As of October 1, we anticipate total revenue from U.S. sports betting to top $11.6bn in 2023 before reaching $20.2bn in 2026.
What Challenges Does the Industry Face?
The legislative and policy landscape is expected to look very different as the market grows from $10bn to $20bn, than the explosive state-by-state expansion of the first five years of the post-PASPA era. While Florida and North Carolina are set to launch or relaunch online sports betting in 2024 and the likes of Missouri, Minnesota and Georgia are anticipated to legalize sports wagering in the next few years, in general those states that have yet to regulate all have higher lobbying barriers to clear than was the case among the earlier adopters of expanded sports betting. Meanwhile, the legislative pathway in two major holdouts – Texas and California – is far from certain and approval will not be possible in either state until at least late 2025 or late 2026 respectively.
In addition, the industry at large is expected to confront new gambling regulations and policy challenges that include heightened scrutiny over advertising and responsible gambling practices, as well as new regulatory models for how Native American tribes will be able to participate in the online market.
How Does Vixio Support Organisations?
Vixio customers interested in this sector get further access to:
- Aggregated data sets providing the latest revenue and other statistical information on all regulated U.S. sports betting, iGaming and traditional casino markets
- The ability to generate their own revenue projections based on various legislative scenarios or business portfolios, using our U.S. Sports Betting & iGaming Forecasting Dashboard.
- A breakdown of all technology, marketing and market-access partnerships since 2018, at a national and state level, through our U.S. Sports Betting Partnership Monitor.
- Easy comparison of state laws and regulations for specific policy and compliance areas, via dedicated legal Q&As for each regulated U.S. state and a Report Builder tool.
- Daily analysis of industry developments and trends, as well as a monthly U.S. Sports Betting Outlook report that includes updated forecasts and highlights key bills and policy trends to watch
The U.S. sports betting industry hit its $10bn revenue milestone ahead of the Global Gaming Expo (G2E) in Las Vegas - and our Vixio team will be there. To arrange a meeting with us at G2E, email firstname.lastname@example.org, or visit stand 3611 on the exhibition floor to meet the team in person.
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