U.S. Sports Betting Market To Be World’s Biggest By 2023, New Report Finds
The U.S. Supreme Court’s historic May 14 ruling to overturn a federal ban will create a legal sports wagering market worth between $3.1bn and $5.2bn in annual revenue* by 2023, according to new projections from GamblingCompliance, the leading provider of business intelligence to the global sports betting industry.
At least seven states are already primed to join Nevada in offering full sports betting now that the federal law known as the Professional and Amateur Sports Protection Act (PASPA) has been struck down, while 25 to 37 states are expected to have lawful wagering within five years, finds the GamblingCompliance report released today.
“After the Supreme Court’s ruling, the U.S. sports betting market is set to quickly become one of the largest in the world, surpassing the U.K. and potentially China within five years,” said James Kilsby, Managing Director – Americas for GamblingCompliance and one of the report’s authors.
“A state-by-state expansion of sports betting is going to be complicated, with various stakeholders including gaming and fantasy-sports operators, major sports leagues, Indian tribes and others likely to lobby for divergent policies as they bid to shape legislation and regulations in their favour,” Kilsby said.
GamblingCompliance expects the Northeast region to become the epicenter of sports betting expansion in the years immediately following PASPA’s demise. New York is projected to become by far the largest U.S. sports wagering market by 2023, while annual revenues in New Jersey, Massachusetts and Pennsylvania are also tipped to surpass those of Nevada as well.
Although California, Florida and Texas would be three of the most lucrative markets for U.S. sports betting, local legal and lobbying obstacles are likely to compromise legislative approval or limit the scope of wagering in those states by excluding online and mobile betting.
The new GamblingCompliance report comes after New Jersey and Delaware recently became the first two states to start accepting sports bets in the wake of the Supreme Court ruling. Mississippi, Pennsylvania, Rhode Island, West Virginia and potentially New York are all set to follow before the close of the year.
“We expect sports betting bills to come thick and fast when state legislatures reconvene for their 2019 legislative sessions,” Kilsby said.
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*EDITOR’S NOTE: Revenue is the amount retained by sports wagering operators after all winnings bets are paid. Revenue is not handle, or the total amount staked by bettors.