Author: Dean Carr
Last Updated: August 2, 2022
Online sports betting and iGaming has well and truly exploded in the United States.
It was reported that the gross revenue figure reached $7.7 billion in 2021, but as more states continue to open their doors to state-based operators that number is projected to continue to rise exponentially.
A VIXIO GamblingCompliance study has revealed that the US sports betting and iGaming sectors are expected to record an annual gross revenue figure of $24.3 billion by 2026.
An expected 3x rise in the space comes as a result of the early boom since 2018 and the additional markets that are expected to open between now and 2026. 10 additional states have already considered opening up alongside the 35 that have already legalized gambling markets in their region.
Projections have also been made in line with the fluctuations that come from each individual state. Gaining licenses in multiple states has proven to be a challenge for a number of operators due to the different rules and fees that are required from each market. Indiana is currently the most strict market, having dished out the most fines to regulators that haven’t followed protocol.
However, the US market has been identified as a market that has the potential for huge growth in the near future. The turn towards online gaming is a huge factor behind this, as states move away from the traditional method of linking licenses to land-based locations. Elsewhere, New York sportsbooks and Maryland sportsbooks were given permission to own their licenses without needing a partnership alongside an established retail partner.
There is also more flexibility in the way that US states allow their customers to place wagers too, with a greater variety in the type of betting markets that are on offer. Projections are also boosted by the new sportsbooks that are expected to apply for licenses in the coming years. The best sportsbooks are expected to expand and open across multiple states.
Ohio sportsbooks and Arizona sportsbooks have also led the way in changing the game in how professional sports franchises can enter partnerships with some of the biggest operators in the state. This is a technique that we could see replicated nationwide with some of the biggest sports franchises in professional sports.