After states were given the power to legalize sports betting in 2018, the momentous ruling has led to a surge in the popularity of sports betting as the industry continues to witness large growth in the US. Put simply, Americans are betting more than ever before.
According to the American Gaming Association in October 2020, sports fans in the country bet an estimated $3 billion on sports for the first time in a single month. On top of this, sports betting revenues were up across the country by 53%. States such as New Jersey even managed to set a sports betting record for the fifth consecutive month, once again highlighting the appetite for sports betting from what is a sports-mad nation.
It should come as no surprise given the sporting prowess America possesses, with many of the country’s biggest sports pulling in global audiences and keeping passionate locals debating sporting issues nearly every day. It shouldn’t shock anyone, then, to see sports fans putting their money where their mouths are on a more regular basis. After all, this also coincides with the downfall of the Professional and Amateur Sports Protection Act (PASPA), a law which essentially outlawed sports wagering across the country. New Jersey was the first state to introduce sports betting back to its residents, eventually resulting in other US states following suit.
As a result of this ruling, sports betting is in a healthy position once again. Alex Windsor, CEO of sports betting aggregator site, Gamble USA is delighted to see the industry taking off in the country, recently saying: “The sports betting industry is really exciting in the US at the minute, with more states legalizing betting and some even went live just in time for the new football season.”
Betting partnerships cropping up
We’re even seeing an array of teams from certain sports adopt various betting partnerships too. For example, Major League Baseball’s Chicago Cubs signed a deal with DraftKings which was reportedly worth around $100 million. Basketball has been gripped by the sports betting industry also, more specifically in the shape of the National Basketball Association (NBA) and the extension of its betting data partnerships with Genius Sports Group and Sportradar. As a result of this agreement, the partnership gives organizations the chance to share their official league data with licensed betting operators in America.
On the deal, Scott Kaufman-Ross, the NBA’s senior vice president and head of fantasy and gaming, said: “Our goal is to partner with every sportsbook in the United States. The industry, collectively, is now embracing the value of official data, particularly for in-play betting. The adoption of this has been substantial in the early years of sports betting here in the US and the importance of using official data for in-play betting is clearly recognized throughout the industry.”
A fresh revenue stream for many
With the global pandemic disrupting much of the sporting calendar and leaving many sports franchises facing financial difficulty, the betting industry could be seen as a solid revenue stream for many teams. Some clubs, for example, are incorporating fan engagement with a variety of marketing opportunities around sports betting, therefore introducing fans to sports betting and enabling betting partners to thrive accordingly. Don’t be surprised to see more and more sides, be it from baseball or basketball, teaming up with a variety of big players from the sports betting industry in the coming months and years ahead.
Just how much is the US sports betting market worth?
It appears to be unclear just how much the US betting market is worth in 2021, but a report by Ibis World from 2018 estimated that fully legal sports betting in the country would be worth an annual $55 billion. The American Gaming Association, though, released a report in the same year which stated that the market is actually worth around $150 billion. With that in mind, precisely how much the US sports betting market is worth isn’t clear, although there is no doubting that it has shown massive growth.