Bet on Sports was the fastest growing industry in the United States until the COVID-19 disease shut down almost all major live sporting events around the world. The pandemic is expected to end in the coming weeks, and the industry should see another major boom.
Sports betting is estimated to be a $150 billion industry here in the United States. The problem is that a large portion of that money is going to unregulated or offshore betting sites. States have tried to combat this issue by legalizing sports betting, but 30 states have still yet to legalize the industry.
The total amount of betting handle that is done on sports betting is easy to figure out in states with legalized sportsbooks, but it’s harder to get a clear picture in other states. Offshore betting sites don’t have to report to anyone, and they aren’t forced to pay taxes to a state in the US.
Since the numbers in 2020 will not give an accurate reflection of the sports betting market, looking at the 2020 betting handle and revenue numbers will give us a better picture. Location makes a big difference in the amount of money each American spends, but mobile/online betting has made betting from anywhere more possible.
Nevada Still Remains the Leader
Even though there have been a few months where New Jersey has seen more sports betting action than Nevada, there is still a clear leader in the industry. Las Vegas and Nevada have seen more bet on sports handle since June 2018 than any other state, and their numbers from last year were higher as well.
Nevada has brought in over $9 billion in sports betting handle since June 2018, and the state has generated close to $600,000 in sports betting revenue. Those numbers are rivaled by New Jersey, but Nevada is still the King.
New Jersey, Pennsylvania Not Far Behind
There were months in 2019 where New Jersey actually surpassed Nevada in terms of bet on sports handle and revenue, but they are unable to consistently keep up. The Garden State has seen over $7 billion in sports betting handle since launching the industry in 2018. Over $477,000 has been brought in as revenue through the industry.
It took Pennsylvania a little longer to get their sports betting industry up and running, but they are putting up impressive numbers as well. Pennsylvania has seen over $2 billion in sports betting handle since June 2018, but they had a huge year in 2019.
Bet on Sports Still Done Illegally
The American Gaming Association estimates that close to 97 percent of all bets placed on the Super Bowl in February were done illegally. This is a huge number and makes it hard to get an accurate depiction of how much money is wagered each year.
The AGA estimates that over $5.3 billion was wagered on the Super Bowl in February, and sportsbooks profited close to $650 million on one game. The hope is that illegal bet on sports goes down in the coming years, but revenue will continue to go up.
Other States Continue to Discuss Legalization
Experts estimate that there will be at least 40 states that offer legalized and regulated sports betting by 2024. Next year is expected to be another big one for the sports betting industry as states will legalize the industry to bring in revenue to help with the coronavirus relief efforts.
Major states such as Texas, California, and Florida have started to take the issue more seriously, and they could create a huge boost to the industry in the United States. All three states feature a huge sports market, and that would lead to massive numbers in the sports betting industry.
A company by the name of Gambling Compliance predicts that the United States could see close to $8 billion in total annual revenue by 2024. A lot will depend on how quickly states can get their laws passed, and what those laws will entail.
Mobile or online sports betting has become extremely popular in the United States, and it is largely responsible for these growing numbers. As more states see their full sports betting potential, the industry will continue to grow and get close to these projections from Gambling Compliance.