U.S. Sports Betting Forecast: Market Could Triple in 3 Years

Researchers indicate that the growth of sports betting revenue should triple in the space of three years. If true, the handle could reach close to $25 billion.

How’s this for a forecast: the $7.7 billion in combined gross revenue generated by the U.S. sports betting and online gaming markets in 2021 could triple in three years, according to Yogonet Gaming News.

The rosy prediction comes by way of a report from sportsbook supplier BtoBet, released September 26.

Data published by industry consulting firms predicted the industry to produce $24.3 billion by 2026, double the size of the U.K. That forecast comes even though many states will not enter the market because of tribal relationships or political opposition.

H2 Gambling Capital reported that, should it be legalized, the California market could account for 13.3 percent of the total gross win by 2025.

The American Gaming Association recently reported that U.S. commercial gaming generated record gaming revenue in Q2 2022. The industry wins from traditional casino games, sports betting and iGaming surpassed $14.81 billion in Q2, 8.8 percent more than in 2021. Sports betting saw $1.42 billion, with a 9.6 percent market share, while iGaming saw $1.2 billion, with an 8.2 percent market share.

BtoBet’s report said that 2022 is poised to surpass 2021, as its first half saw $29.16 billion, 18 percent more than during the same period last year. 21 of 31 commercial gaming jurisdictions reported increases, out of which nine saw quarterly records.

Land-based slots and table games generated the main share of the industry’s revenue in Q2 2022, amounting to $12.17 billion, an increase of 29 percent compared to 2021. Sports betting garnered $1.42 billion during the quarter, a rise of 58.7 percent compared to last year. During the first half of the year, the vertical saw $3.04 billion in revenue.

David Forman, vice president of research for the American Gaming Association, said much of the growth in sports betting was driven by its mobile format, which has been “a boom for consumers.” There was a rise in mobile sports betting during the pandemic of 72.5 percent in 2020, and 82.5 percent in 2021. These numbers have led experts to forecast that, by 2025, online sports wagering could represent 86 percent of the gross revenue market size.