US SPORTS BETTING MARKET TO REACH $2.5 BILLION BY 2021: UNION GAMING
BY Ad Miral
The current momentum of the U.S. sports betting market could increase the total amount of sports betting revenue to $2.5 billion by the year 2021. In a press release, Union Gaming explained that the numerous agreements fostered in 2019 between sports betting companies and casinos should play a significant role in increasing sports betting revenue within the next two years.
In the release, they explained that major operations like MGM helped to make sports betting mainstream by creating partnerships with such companies as Yahoo Sports and Buffalo Wild Wings, among others. These do not include the numerous regional partnerships that have been agreed upon during the same period of time.
Union Gaming explains that this is only the tip of the iceberg. With 11 new states looking to offer sports gambling in this year alone, it is expected that these partnerships will expand at least 11-fold so that by the year 2025 the sports betting market will likely reach an estimated $8 billion. This is just in the United States.
In a separate study conducted by Transparency Market Research, they concluded that the total amount of online gambling and sports betting will reach over $128 billion by the year 2026. In a report entitled “Online Gambling & Betting Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026,” they figured that expansion of these markets will go up by at least 11.8% from 2018 through 2026.
In their report, they have found that several factors are playing a key role in the increase in online gambling. This starts with such factors as increased availability of gambling, consumers having a higher disposable income, and an increased trust in the electronic payment systems used in online gambling and betting. This has led them to believe that as long as the market is protected from cyber-attacks that the increase in betting is only going to substantially increase.
The one factor that neither study is able to accurately predict is the rate at which other U.S. states may jump on board. Currently, 13 states offer sports gambling. With 11 additional states expected to approve this during 2020, that will still leave 26 states that have not legalized these operations.
Should the state legislatures act quickly to approve these operations, that $8 billion that is predicted could quickly be dwarfed. It is widely recognized across the globe that United States citizens have the largest amount of disposable income available to them. Should the availability of sports gambling be increased some insiders believe that an $8 billion prediction could double by 2026.