The Rise of U.S. Sports Betting
US sports betting has grown dramatically since May 18th, 2018, when The Professional and Amateur Sports Protection Act (PASPA) was repealed. The Supreme Court struck down PASPA, determining that the law is not “consistent with the Constitution,” which allows states to create their own sports gambling regulations in the absence of a federally mandated framework.
On June 5th, 2018, Delaware became the first US State to accept single-game sports wagers, taking immediate advantage of PASPA’s repeal. By the end of 2018, several other states, including New Jersey, Rhode Island, Mississippi, West Virginia, New Mexico, Arkansas, and Pennsylvania, would either begin accepting sports bets or approve their own legislation to legalize and regulate the practice.
Today, 38 states have legalized sports betting, whether retail, online, or a combination of both, and sports betting revenue has been growing steadily ever since. In 2023, US sports betting revenue hit $11 billion, and this year, projections expect the sector to reach $14.30bn, making it the biggest year ever for the sector.
As states continue to refine their regulations, sports betting revenue has become a real economic driver. State and local governments are cashing in on gambling taxes, which are typically allocated to fund general budgets and public projects like infrastructure, education, and state programs.
According to the AGA, sports betting significantly contributes to the US economy.
Annual Growth of U.S. Sportsbetting
Annual growth of the sports betting market in the United States from 2018.
Monthly Growth of U.S. Sportsbetting
Monthly growth of the U.S. sports betting handle, gross gaming revenue, hold rate, and tax revenue.
Where Sports Betting is Legal in the U.S.
Where sports betting is legal across the United States.
U.S. Gambling Market Over Time
U.S. sports betting revenue has grown 1097% from 2018 until the end of 2023.
U.S. Sports Betting Demographics
Sports betting in the U.S. is most popular among 25 to 34-year-olds.
Most Popular Sports to Bet on in the U.S.
The most popular sports wagered upon across the U.S.
Sports Betting Revenue By State
| State | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|
| Arizona | $6,573,800,272 | $348,185,390 | 5.47% | $34,818,539 |
| Arkansas | - | - | - | - |
| Colorado | $5,560,232,285 | $391,946,267 | 7.15% | $27,423,432 |
| Connecticut | - | - | - | - |
| Delaware | $65,326,809 | - | - | - |
| Florida | - | - | - | - |
| Illinois | $11,620,474,009 | - | - | - |
| Indiana | $4,337,817,508 | $404,363,766 | 9.5% | $38,417,065 |
| Iowa | $2,420,464,385 | $198,810,523 | 8.33% | $13,419,710 |
| Kansas | $2,121,564,412 | $182,415,461 | 8.83% | $10,036,471 |
| Kentucky | $892,370,163 | $112,118,421 | 10.94% | $15,545,112 |
| Louisiana | $2,905,138,040 | $289,778,947 | 9.86% | $43,466,842 |
| Maine | $82,091,923 | $9,020,360 | 11.09% | $902,036 |
| Maryland | $4,617,323,134 | $514,081,188 | 11.19% | $46,165,906 |
| Massachusetts | $4,967,511,977 | $483,666,398 | 8.47% | $93,875,096 |
| Michigan | $4,810,903,877 | $434,438,031 | 9.23% | $36,492,795 |
| Nevada | - | - | - | - |
| North Carolina | - | - | - | - |
| New Hampshire | $821,707,403 | $80,288,654 | 9.96% | $35,572,290 |
| New Jersey | $11,972,320,289 | $1,006,681,602 | 8.87% | $143,452,128 |
| New York | $19,103,521,572 | $1,689,883,800 | 8.98% | $861,840,738 |
| Ohio | - | - | - | - |
| Oregon | $213,069,000 | $21,429,000 | 10.04% | $1,714,320 |
| Pennsylvania | $7,683,099,581 | $686,944,388 | 9.17% | $165,133,458 |
| Rhode Island | $461,283,426 | $40,277,816 | 8.73% | $20,541,686 |
| Tennessee | $4,292,352,235 | $2,524,088,884 | 54.96% | $83,557,513 |
| West Virginia | - | - | - | - |
| Wyoming | $172,247,302 | $17,293,948 | 10.17% | $1,062,680 |
| Vermont | - | - | - | - |
| Virginia | $5,590,022,862 | $481,978,027 | 8.8% | $72,296,704 |
| Total | $101,284,642,464 | $9,917,690,871 | 11.49% | $1,745,734,521 |
U.S. States annual sports betting handle, gross gaming revenue, hold rate, and tax revenue.
U.S. States Monthly Revenue Growth
| Month | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|
| January 2023 | $9,040,169,507 | $624,788,042 | 7.8% | $141,672,297 |
| February 2023 | $7,394,777,416 | $460,319,031 | 7.26% | $108,665,632 |
| March 2023 | $9,311,622,813 | $759,509,304 | 9.4% | $170,244,309 |
| April 2023 | $7,748,337,638 | $624,112,209 | 9.32% | $143,623,225 |
| May 2023 | $6,900,762,968 | $676,209,453 | 11.44% | $156,784,772 |
| June 2023 | $5,552,108,312 | $409,669,853 | 8.19% | $99,463,671 |
| July 2023 | $4,957,692,018 | $644,173,586 | 15.69% | $105,824,410 |
| August 2023 | $5,644,091,682 | $677,917,539 | 14.23% | $101,455,525 |
| September 2023 | $9,693,674,776 | $1,158,873,142 | 13.96% | $168,047,571 |
| October 2023 | $10,873,287,073 | $1,285,543,267 | 14.78% | $187,329,110 |
| November 2023 | $12,273,515,051 | $1,151,454,950 | 11.51% | $147,294,562 |
| December 2023 | $11,894,603,210 | $1,445,120,494 | 14.39% | $215,329,438 |
| Total | $101,284,642,464 | $9,917,690,871 | 13.63% | $1,745,734,521 |
U.S. States monthly sports betting handle, gross gaming revenue, hold rate, and tax revenue.
The U.S. Sports Betting Sector
The US sports betting sector has changed. Where it was once limited to Nevada and the casinos of Las Vegas, it’s now legal in 38 states across the US. This includes retail, online sportsbooks, and betting apps, with millions of Americans participating daily.
The COVID-19 pandemic also accelerated the growth of online sports betting. With live sports shut down, bettors turned to e-sports, and digital betting on virtual games surged. This drove many newcomers to try online betting as well. Adoption rates stayed high even when live sports returned. Digital habits are now ingrained in users, and the market is online.
Sports betting is more accessible than ever. To reduce the risk of gambling addiction, learn the best practices for responsible gambling.
U.S. Sports Betting Revenue Growth
Sports betting revenue has been on the rise since its legalization. It's setting new records each year as U.S. states legalize and expand online and retail sports betting, with an average annual growth rate of 93.27% over the past five years. In 2019, gross gaming revenue (GGR) was $0.9 billion, surging to $1.5 billion by 2020. This rapid expansion continued as revenues climbed to $4.3 billion in 2021, $7.5 billion in 2022, and a record-breaking $10.9 billion in 2023. With Americans wagering $119.8 billion in 2023, the industry is set to continue its explosive growth as more states legalize and expand sports betting.
In Q3 2024, reports show that sports betting revenue continued to rise, with GGR reaching $3.24 billion—a 42.4% year-over-year (YoY) increase—marking a record quarter for the industry. The total handle, or amount wagered, also climbed to $30.33 billion, up 28.8% compared to last year. This growth was fueled by new markets like Kentucky, Maine, and Vermont and expanded online betting options in states such as Delaware and D.C. Kentucky stood out with an astonishing 2,380% increase in handle.
The growth of the sports betting sector will be driven by new states legalizing sports betting, increased consumer interest, digital innovation, and expanded mobile sports betting options. As of October 2024, 91% of Americans owned a smartphone, so it is natural that online sports betting would continue to be responsible for much of the betting revenue.
High-stakes seasons like college football, the NFL, and MLB drive revenue spikes in the sports betting industry. For instance, during the 2023 NFL season, Super Bowl LVII generated over $1 billion in legal bets across the U.S.
U.S. Historical Sports Betting Revenue
We need to go back in time to understand the trajectory of sports betting revenue. Before the federal ban was repealed when Nevada and Atlantic City were the sole players. Since the Supreme Court struck down the federal ban in 2018, 35 other states and Washington, D.C. have quickly legalized their sports betting markets, and sports betting revenue has skyrocketed.
- Steady Growth: US sports betting revenue has grown from $0.48 billion in 2018 to $14.30 billion in 2024.
- Rapid Expansion: Revenue nearly doubled between 2019 ($0.91 billion) and 2020 ($1.55 billion). A boom in online betting due to the Pandemic.
- Breakout Year: 2021 saw a significant jump to $4.33 billion, driven by broader legalization and adoption.
- Sustained Momentum: Revenue reached $7.56 billion in 2022 and $11.04 billion in 2023, showcasing continued market growth.
- Record High in 2024: The industry achieved its highest-ever revenue of $14.30 billion, highlighting the growing popularity of sports betting in the US.
What Impacts U.S. Sports Betting Revenue?
Many factors affect the overall growth and fluctuations in betting revenue. Two main drivers are mobile betting apps and online sports betting, which have opened up new revenue streams and attracted both old and new bettors. Statista projects a compound annual growth rate (CAGR) of 10.73% from 2024-2029, resulting in a market volume of $23.80bn by 2029.
Sports Betting Regulation
The role of state and local governments is also crucial. Each state writes its regulations, which vary by state. Sportsbook revenue depends on state tax rates, state licensing fees, and state consumer protections. Gambling tax revenues are a big incentive for all states to adopt sports gambling, as it’s been a steady revenue stream for general budgets, public programs, and services. Despite these new budgets across all states with legalized sports betting, there are still 12 US states that have not legalized sports betting. Issues in these 12 states legalizing sports betting range from cultural backlash to legislative idiosyncrasies.
Market Conditions
Market competition and economic conditions are also factors. For example, New Jersey and Colorado have shown that a competitive market with multiple legal sportsbooks (14 in New Jersey and 15 in Colorado) can increase gambling revenue by giving bettors more options. New York, however, with the highest tax rates on sports betting (51% tax rate on Gross Gambling Revenue), still has the highest sports betting handle nationwide-$19,103,521,572 in 2023, due to the sheer number of people gambling in the state and eleven professional sports teams scattered across all major leagues.
Sports Competitions
Professional and college seasons and events drive higher sports betting handles as fans bet on their favorite teams. For example, 68 million Americans (19.7% of the US population) wagered $23.1B on Super Bowl LVIII in February 2024, which the Kansas City Chiefs won.
March Madness is also a great example of how sports events can spike sports betting handle. In 2023, $15.5bn was wagered on the tournament. This was attributed to the resurgence of bracket competitions and expanded legal gambling regions in the U.S.
Trends in League Sponsorship Deals
Over the last five years, all five major professional sports leagues in the U.S.—NFL, MLB, NBA, NHL, and MLS—have seen teams create sponsorships with sports betting companies.
The NFL has partnered with three official sportsbooks: Caesars, DraftKings, and FanDuel. The league now permits sportsbooks to operate within its stadiums, reflecting a significant shift in its stance on sports betting.
Betting-related content, such as point spreads and odds—once strictly prohibited—has become a regular feature of pregame shows and media coverage. Sportsbook commercials are also common during NFL broadcasts. As betting options continue to expand, wagers can now be placed on nearly every aspect of the game, creating opportunities for engagement on practically every play.
Value of New vs. Renewed Deals
Newly signed sponsorships command higher average annual values than renewals. Across all leagues, the average total value of new partnerships is $6.1 million compared to $3.4 million for renewed agreements.
- League-Specific Trends:
- NFL: Leads in total sponsorship value with $281 million in deals.
- MLB: Follows closely with $235 million in partnerships.
These figures present the growing appeal of sports betting sponsorships as teams seek to capitalize.
Newcomers to Watch
While market leaders FanDuel, DraftKings, BetMGM, and Caesars are still in control, platforms like Fanatics and ESPN BET are shaking things up:
- Fanatics: Bought PointsBet’s U.S. assets for $225 million in June 2023. They’ve since opened a state-of-the-art sportsbook at the Washington Commanders’ FedEx Field.
- ESPN BET: Penn Entertainment’s $1.5 billion deal with ESPN is a smart play for a sports media brand to partner with sports betting. ESPN BET is in a strong position to take market share with ESPN’s reach and brand power.
The Role of Marketing in Sports Betting Revenue Growth
Advertising by legal sportsbooks plays a crucial role in guiding consumers toward legitimate betting options and ensuring they stay within safe and regulated markets. However, an intriguing shift has emerged in recent years: while sports betting revenue shatters records, advertising spend steadily declines.
The Decline in Sports Betting Advertising Volume
Sportsbooks often advertise to build brand awareness, capture market share, and grow sports betting revenue. However, as these markets mature, the need for high levels of traditional advertising is declining.
Sports Betting TV Advertising Down One-Third Since 2021
According to reports, sports betting advertising spend, including daily fantasy sports (DFS), fell by $210 million in 2023—a 15% YoY decline. Excluding DFS, ad spending dropped by 21%.
- Across all channels, ad volume decreased 4% year-over-year, down 20% from the 2021 peak.
- The largest decline came from television advertising, which fell by 11% in 2023 and has plummeted 33% since 2021.
What’s Driving the Decline in Advertising Spend?
- A Shift Toward Social Media and Organic Advertising: Social media platforms offer sportsbooks an efficient and cost-effective way to engage bettors. Real-time odds updates, viral campaigns, and influencer partnerships have made platforms like Instagram, X, and YouTube the new battleground for customer acquisition.
- Increased Reliance on Retention Strategies: As markets mature, sportsbooks shift their focus from acquiring new customers to retaining existing ones. Personalized offers, loyalty programs, and in-app notifications keep bettors engaged without heavily relying on broad advertising campaigns (GamingAmerica, 2023).
- Data-Driven Personalization: Sportsbooks tailor offers to individual preferences using behavioral insights to maximize customer lifetime value.
- Loyalty Programs: Rewarding frequent bettors fosters long-term relationships and brand loyalty.
- Sponsorships and Partnerships Impacts on Bettors: Sponsorships and partnerships between sports betting brands and professional sports teams or leagues are key to customer acquisition and market growth. With U.S. sports betting expected to triple by 2030, sponsorships will remain a major driver of growth and revenue stream for betting companies and sports properties (Navigate, 2023).
Top Sports Betting Sponsors
The U.S. sports betting market is led by FanDuel and DraftKings, which control two-thirds of it together. BetMGM has 10%, and Caesar’s Entertainment has 8% after entering the market in 2021.
- FanDuel has the most partnerships with 9 professional leagues and 24 pro teams (FanDuel, 2024).
- In 2023, DraftKings decided to scale back its team partnerships but recently signed a deal with the WNBA (NBA.com, 2024). DraftKings is still an official NFL, NHL, NBA, PGA Tour, and UFC sports betting partner.
- Caesars has done its fair share of partnership deals with pro leagues and teams. The NFL and the NHL are the most notable (NHL.com, 2024).
- BetMGM has taken an interesting approach and has become X's official odds provider and betting partner (BetMGM, 2024).
Advertising Regulations that Impact Revenue Growth
In the U.S., regulations on sports betting marketing and advertising are determined at the state level, creating a patchwork of requirements for operators.
The American Gaming Association is not a regulatory body, but its Responsible Marketing Code for Sports Wagering has become a recognized framework for promoting ethical and responsible advertising practices. While the AGA’s code is voluntary, it is influential across the industry, particularly among operators aiming to demonstrate commitment to responsible marketing.
AGA Code Principles
- Legal Age Audiences: Ads target 21+ and do not appeal to minors. Digital placements must be 21+, and all promotional materials are age-restricted.
- College Advertising: Ads are prohibited on campus or in student media; partnerships are only for responsible gambling education.
- Responsible Messaging: All ads include a responsible gambling message, no “risk-free” claims, and do not encourage excessive betting or financial risk.
- Digital Compliance: Platforms must have age, geolocation verification, and responsible gambling messages.
North American Sports Betting Markets
Sports betting's growth is not only in the United States. The sports betting industry has also exploded globally, with distinct regional markets driving growth. Each region offers unique dynamics shaped by local regulations, cultural preferences, and technological advancements. North America stands out as a rapidly expanding market, with the United States leading in revenue and market innovation, Canada showing strong growth potential, and Mexico steadily rising. These markets collectively compete with established regions such as Europe and emerging giants in Asia and Latin America, all contributing to the industry's global expansion.
North America Sports Betting
North America has become a major force in the sports betting industry, with the US leading the multi-billion dollar growth and Canada chipping in since its own regulatory changes in recent years. Mexico also has a regulated sports betting sector that has enjoyed steady growth.
Canada
Canada is the second-largest country in the North American sports betting industry, although Ontario is the only province with international sports betting brands. Since Ontario launched single-event sports betting, it has generated over $2.4 billion in gaming revenue alone (iGaming Ontario, 2024). Canada is a growing market in North America; other provinces are discussing expanded regulations. Alberta is set to follow Ontario’s lead (CBC, 2024), which could start in early 2025. The remaining provinces of Canada run local sports gambling platforms through provincial operators and platforms.
Mexico
Mexico’s online sports betting market is thriving and is regulated by the Ministry of the Interior under the Federal Games and Draws Law. Legalized in 2004, it has attracted major operators and steady growth. In 2024, the market is expected to generate $1.24 billion, with revenues projected to reach $1.86 billion by 2029 at a yearly growth rate of 8.45%. Currently at 2.1%, user penetration is expected to grow to 2.6%, totaling 3.5 million users by 2029. With an average revenue per user of $460, Mexico’s market continues to expand, though it trails behind global leaders like the U.S. and Canada (Statista, 2024).
Sports betting in 38 U.S. states, Canadian provinces, and Mexico has changed the landscape in North America.
Challenges of the Sports Betting Industry
The sports betting industry is poised for continued growth, with global projections that 2.23% of the world's population will be users by 2029. Key factors in this growth include legalizing sports betting in new markets, technological improvements, and innovations that enhance user experience.
However, the industry has several challenges that require solutions:
1. Regulatory Compliance
According to a report by the National Council on Problem Gambling (NCPG), regulatory compliance is big. The US has a patchwork of laws, with 38 states and Washington D.C. legalizing sports betting as of 2024, each with its own rules and tax rates. This complicates betting companies operating nationwide, often requiring many legal and financial resources to comply with multiple jurisdictions.
2. Gambling Addiction
And gambling addiction is another major issue. There are 2.5 million adults in the US who have severe gambling problems, and 4-6 million are at risk of developing similar issues. This growing number means we need to have strict measures to identify and support at-risk users through responsible gambling programs such as self-exclusion tools and real-time intervention systems.
3. High Tax Rates
The sports betting industry faces financial strain due to high tax rates in certain U.S. states. For instance, New York, Rhode Island, and New Hampshire impose a 51% tax on gross gaming revenue, significantly higher than most others. Tax burdens can deter smaller operators and limit innovation as companies prioritize compliance over growth-oriented initiatives. Many sportsbooks, including Unibet, Betway, and Superbook, have already exited the US market.
Key U.S. Sports Betting Revenue Trends
Customer Preferences
American consumers are increasingly drawn to online sports betting due to its convenience and accessibility. The widespread use of smartphones and mobile apps has made it easier than ever for people to place bets on their favorite sports teams or events from anywhere. This growing interest has led to an influx of online sports betting platforms and apps entering the market (Statista, 2024).
Market Trends
The popularity of parlay betting, which combines multiple wagers into a single bet, is increasing. Ben Andrews, head of leisure and travel research for Goldman Sachs Research in Europe, stated, “The rapid rise of parlays has been a distinctive feature of sports betting’s rise in the US. We expect parlay penetration to continue to rise from here, along with improved in-game betting products and greater personalization across the user experience, bets offered, and promotions”(Goldman Sachs, 2024).
Noah Naparst, who evaluates sports betting companies for Goldman Sachs Asset Management, predicts that the rise of in-game betting could have significant implications for media companies.
“The future of sports betting is the convergence of media and sports and betting,” he said. “You’re watching a basketball game in your betting app, and a player is about to take a free throw. The odds that he or she makes it pop up on the screen, and the app asks, ‘Do you want to make this bet or not?’ That’s where the industry is heading” (Goldman Sachs, 2024).
Unique Local Factors
The strong presence of professional sports leagues is a distinctive aspect of the U.S. online sports betting market. Sports like football, basketball, baseball, and hockey enjoy immense popularity, and fans are eager to bet on their favorite teams and players. The country's sports culture, with millions passionately supporting their local teams, has created a large and dedicated customer base for online betting operators.
The Future of the U.S. Sports Betting Industry
Looking forward, sports betting will continue to grow. As new tech and betting options like artificial intelligence (AI) are developed, the market will see more innovation for sports fans. AI will change the face of sports betting. AI-generated analytics and algorithms can more precisely track metrics like a running back's speed on the football field or an infielder's throwing velocity in baseball. Athletes already use AI to enhance their training routines, while coaches apply it in recruitment and game-day strategy planning.
In the next few years, we will see the convergence of AI, machine learning, and big data analytics. Some consumers currently use AI betting bots, which assist in analyzing huge data sets and trends to better decide how to wager. AI is revolutionizing sports betting by leveraging its advanced capacity to process massive datasets and uncover too complex patterns for human analysis. This shift from intuition-based betting to AI-driven insights could transform the sector, turning sports wagering into a sophisticated exercise in strategic decision-making.
Finally, as Web3 and blockchain technologies evolve, they may disrupt the sports betting industry. Blockchain could provide transparent, decentralized betting platforms, allowing bettors to track transactions. Smart contracts can make payouts more efficient. Non-fungible tokens (NFTs) can add new rewards, like collectible tokens for big wins or achievements.
A Responsible Gambling Future
As sports betting grows, so does the demand for responsible gambling. With the increasing availability of data, regulators and betting platforms can implement advanced monitoring systems. These systems can track betting behaviors in real-time and deploy tools to help prevent problem gambling proactively.
AI and machine learning algorithms are now being used to identify risky gambling patterns, enabling timely interventions to protect individuals from harm. However, challenges remain. An international group of health experts concluded that existing regulations globally are insufficient in protecting the public from the harms of widely accessible gambling.
To address these gaps, some US states are exploring stricter regulations. These include mandatory loss limits, self-exclusion programs, and education campaigns on gambling risks. Meanwhile, there are calls for betting platforms to adopt stricter ethics. They should add features like longer cooling-off periods and alerts to help users stay in control. The future of sports betting will rely on tech and a safer, sustainable gambling environment.
FAQs on the Record Growth in Sports Betting Revenue
Industry Growth and Revenue Trends
What is driving the growth in sports betting revenue?
Sports betting revenue has surged due to the legalization of sports betting in additional states, the rise of online betting platforms, and the robust sports culture in the U.S. Seasonal events like the Super Bowl and March Madness, among other drivers, further contribute to spikes in sports betting revenue.
How much revenue is the sports betting industry projected to generate in 2024?
According to a recent report from Statista, the sports betting industry is on track to generate $14.30 billion in revenue by 2024. This figure represents record growth in both gross and total sports betting revenue, highlighting the increasing popularity of gaming and the expansion of legal sports betting markets.
What role do taxes play in the sports betting industry?
Taxes on gaming revenue from sportsbooks significantly benefit state and local governments. This money is often allocated to government budgets, public infrastructure, education, and healthcare programs. States with high sports betting revenue, like New York and New Jersey, show that regulated sports betting can boost the economy. (US Census, 2024)
Which states lead in sports betting revenue?
Top states like New York, New Jersey, and Illinois collectively generated over $3.7 billion in gross revenue in 2023. Factors such as sports betting handle, population size, and eleven professional sports teams drive their success.
Technological and Market Innovations
How does online sports betting impact revenue?
Online betting has been a primary driver of revenue growth. Mobile apps' convenience and new features, like in-play betting, have made online platforms the industry's top players. Recent data shows increased consumer engagement; online platforms now account for the majority of sports betting handle.
What are some innovations shaping the future of sports betting?
Technologies like AI, blockchain, and Web3 are transforming the gaming landscape. AI-powered analytics provide bettors with real-time insights, while blockchain ensures secure, decentralized betting platforms. Additionally, introducing NFT-based rewards is a game-changer for enhancing user loyalty and engagement.
How has the COVID-19 pandemic influenced sports betting?
The pandemic led to a surge in online betting, especially in e-sports, as traditional sports were temporarily halted. This shift has had a lasting impact on consumer behavior, with more people now favoring digital platforms. The shift showed the sportsbook industry's resilience. Operators quickly adapted to changing market demands.
Regulation and Responsible Gambling
Who Regulates the Sports Betting Market?
In the U.S., each state regulates sports betting. Each has its own gaming commission or regulatory body to oversee it. Examples include the Nevada Gaming Control Board, the New Jersey Division of Gaming Enforcement, and the Pennsylvania Gaming Control Board. These governmental organizations ensure operators comply with state-specific laws, protect consumers, and prevent illegal gambling activities.
What is The Role of the American Gaming Association (AGA)
The AGA isn't a regulatory body but plays a pivotal role in shaping the industry by:
- Advocating for responsible gambling practices through initiatives like "Have a Game Plan. Bet Responsibly."
- Support creating legal, regulated frameworks for sports betting. Help states adopt models that maximize revenue while protecting consumers.
- Promoting the industry's economic benefits, including job creation and contributing to local economies.
- Providing research and insights to help stakeholders make informed decisions.
How many U.S. states have legalized sports betting?
As of 2024, sports betting is legal in 38 states and D.C. Most of these states have in-person and online sportsbooks, ensuring broad access. The growing number of states adopting sports betting laws underscores the industry's widespread acceptance.
How does responsible gambling fit into the industry's growth?
Responsible gambling is critical to the long-term success of gaming. Sportsbooks implement key measures such as advanced monitoring systems, self-exclusion programs, and public awareness campaigns. These tools help prevent addiction and ensure that the growth in gross revenue does not come at the expense of consumer well-being.
Global and Regional Market Insights
What are some global trends in sports betting?
In 2024, the industry made $243.7 billion. North America, Asia-Pacific, and Latin America led the way. Emerging markets like Brazil and India are promising. Regulatory changes and the rise of online betting are driving this.
What is the expected market size of global sports betting by 2029?
The global gaming market will reach $64.82 billion by 2029. This is due to tech advances, changing tastes, and more legal sports betting.
What factors affect sports betting revenue?
Several factors impact sports betting revenue, including:
- The growth of online betting platforms
- Seasonal events like the Super Bowl and the FIFA World Cup
- Regulatory frameworks
- Technological advancements like AI and blockchain
- Market competition and user engagement strategies
What role do brick-and-mortar sportsbooks play in the industry?
Brick-and-mortar sportsbooks still drive a portion of the sports betting revenue, especially in Nevada. There, the betting handle remains tied to in-person wagering. In August 2024, land-based gaming rose 3.3% year-over-year to $4.22 billion. This includes revenue from casino slots, table games, and retail sports betting. (AGA, 2024)
Additional Influential Factors in the Sports Betting Industry
What is the impact of professional sports leagues on betting?
Professional sports leagues drive betting activity. Fans want to bet on their favorite teams and players. This increases betting handles and revenue.
How do cultural factors affect the legalization of sports betting?
Cultural opposition, religious beliefs, and concerns about social impacts contribute to resistance in 12 US states, affecting legislative decisions on legalizing sports betting.
How are media companies expected to interact with sports betting in the future?
Media companies may integrate sports betting into broadcasts and apps. They will offer in-game betting and personalized content. This blurs the lines between media consumption and betting.(Guardian, 2024)