The business of betting: sports gambling booms as more US states legalize mobile bets

Friday, February 9, 2024 by Snacks

The playing field… 68M Americans plan to wager $23B on the Super Bowl, from bets on how the game’ll play out to gambling on T. Swift’s lipstick color. US sports betting has surged since the Supreme Court struck down a federal ban in 2018. Since then, over half of states have legalized sports bets, with 10%+ of Americans considering themselves online sports bettors. The American Gaming Association projected that sports betting topped $100B last year, and it’s expected to top $200B by 2025. Sports gambling is still illegal in California and Texas, the two most populous states, so the field has room to expand.

The players… FanDuel and DraftKings control ~70% of the US online sports-betting market. Last month, FanDuel parent Flutter, one of the world’s biggest sports-betting cos, listed on the NYSE in its US market debut. While casino rivals like MGM and Caesars are smaller mobile players, they've been revamping their wagering apps (think: live-streaming options). Casino owner Penn Entertainment and its new ESPN-branded sportsbook aim to make up 20% of the US sports-betting market by 2027. Next week, Penn’s expected to drop its first quarterly #’s since converting its Barstool Sportsbook into ESPN Bet.

Keeping score…

  • Over a third of Americans bet on sporting events, and 19% have an account with an online sports-betting service.