The sports betting industry in the United States will reach $8 billion in revenue by 2030, a new report stipulates. The United States will experience a rapid growth, shaping it up as the second-largest market in the world to place a wager on the outcome of sporting competitions.
US Sports Betting to Hit $8bn by 2030
A detailed review by iGaming Business and ICE Spots Betting USA, H2 Gambling Capital’s US Spots Betting: The Road to 2030 is one of the most comprehensive reports on the industry in recent years, charting the course of the entire segment past the now-defunct Professional and Amateur Sports Protection Act (PASPA), which was struck down back in May as part of an initiative spearheaded by the State of New Jersey.
In 2018 alone, the US is already tipped to overtake the majority of markets and emerge as the fifth largest, from its present ninth spot. More surprisingly, China will dominate the majority of sports betting operations, not by dint of lax regulations, but rather by the sheer population the country has.
By 2023, the United States will already bolster similar numbers and involvement as more developed sports betting bastions, such as Italy and the United Kingdom. However, the US may soon be overtaking the cited as examples markets given their own internal changes that will introduce a spate of tougher regulatory measures. Some estimate that this will prompt an exodus among European bookmakers who will now refocus their efforts in the United States.
The online gaming industry was born in the United States, but a series of restrictive legislation ousted it, prompting its expansion in the Europe.
Although sports betting was only 0.2% of all legal US gambling pre-14 May, some $196bn was being bet on sport illegally. Add a thriving DFS market to the mix and that represents quite a high potential untapped market for a post-PASPA regulated sports betting offer to attack. – David Henwood
Meanwhile, H2 Gambling Capital Director David Henwood has pointed out that the United States is now quickly expanding, even if the pre-PASPA betting levels were registered as 0.2% of all legal gambling. One of the strong suits of the United States is experimenting with popular segments, such as Daily Fantasy Sports (DFS), which promise to prop the overall activity. In addition, the potential media windfall is estimated at $7 billion.
Take the Good News with a Pinch of Salt
According to Mr. Henwood, as exciting as the growth may be, there are still hurdles to consider, as each state will have to elaborate its own regulatory framework, and that is a process often bogged down in bickering, impossible tax rates and other reasons inciting local dissent.
More specifically, the H2 report has specified that as many as 20 states will still not have regulated sports betting by 2030, which is half the country. Meanwhile, some of the early adopters today, including California and New York, will lead the way in terms of revenue in 2030.
Mobile betting is also shaping up as an important source of revenue and 63% of all sports betting activity will go through portable devices by 2023, the reports estimates.