The United States’ online sportsbetting market is expected to grow by almost 300% over the course of the next four years to be regularly chalking up aggregated annual revenues of around $37 billion by 2025.
This bullish prediction from American investments specialist Ark Investment Management and published by Front Office Sports represents a significant jump from the industry’s current tally of about $9.5 billion and anticipates associated handle seeing a ten-fold rise from the current $18 billion to something closer to $180 billion.
The research indicated that eleven states with legalized remote sportsbetting have already surpassed the $1 billion handle mark with Virginia having reached this milestone the fastest after only four months. This unprecedented growth, which was no doubt helped by fears associated with the ongoing coronavirus pandemic, saw the sector’s related aggregated revenues top $961 million for the first three months of the year as the percentage of mobile and online business in the states of Indiana, Illinois and Pennsylvania rose by at least 75%.
Front Office Sports disclosed that around half of the country’s states have already legalized some form of sportsbetting following the 2018 revocation by the United States Supreme Court of the earlier partial prohibition contained within the Professional and Amateur Sports Protection Act (PASPA). To add to this and online operators are simultaneously doing what they can to enlarge their market with DraftKings Incorporated and FanDuel Group alone having contributed around $20 million in an effort to get their businesses legalized in Florida.
However, the research showed that it’s not only operators and aficionados who are benefitting from the surge in online sportsbetting as Nielsen reported that American television networks are thought to have brought in roughly $154 million in associated first-quarter advertising. There is moreover a forecast from BIA Advisory Services that companies involved in remote sports wagering could together annually spend $587 million on television marketing campaigns by the end of 2024, which compares with the paltry $11.5 million expended in 2020.
Connecticut is set to become the latest state to allow online sportsbetting from October 7 and this move could well end up pushing the 2021 revenue estimate up by a further $1.7 billion, which would encompass business from sports wagering, iGaming and fantasy sports. Such a tally would undoubtedly make the market in the United States one of the world’s largest with Technavio having estimated that the global sector could grow by as much as $134 billion over the course of the four years to 2024.