Ever since the U.S. Supreme Court overturned a federal ban on sports betting, the industry has shown expansive growth. In the second quarter of 2021, Americans wagered almost $900 million via legal sportsbooks.
That sports betting handle represented a 650% increase from the same quarter in 2019. Ten states legalized sports betting during that span.
With the coronavirus pandemic winding down in the gambling industry, sports betting shows signs of getting back to normal. One of the biggest catalysts for growth in 2021: American football.
Key Takeaways of the Sports Betting Industry
In 2019, revenue from sports betting in the U.S. totaled more than $1.5 billion. When surveyed, 61% of Americans preferred football as their favorite sport to bet on.
According to Statista, sports betting revenue in the U.S. was expected to rise to $2.1 billion in 2021. By 2028, that number could reach $10 billion.
By 2025, revenue from online wagers is expected to be worth $5 billion. Brick-and-mortar establishments may generate $1.5 billion.
A major centerpiece of U.S. sports betting, the NFL season, began in September. Revenue for the 2021 season was projected to be worth $270 million.
Right now, the NFL and the sports betting industry lead the post-pandemic economic recovery.
How Much Money is Wagered on Sports Each Year?
Since a lot of betting handle goes through offshore sportsbooks, it’s not easy to determine exact figures. However, the American Gaming Association reported that about 45 million Americans would place wagers on the upcoming NFL season.
That would put figures at about $12 billion, which represents a 36% increase from the previous year. And the NFL expects sports betting revenue to increase by almost four-fold in the next ten years.
Most of the growth for the 2021 NFL season comes from online sportsbooks. The AGA predicted that almost 20 million would place their bets online, a 73% increase from last year.
That’s about double the amount of bets expected to be placed at traditional casinos.
In the first seven months of 2021, Americans placed $27 billion worth of bets with legal sportsbooks.
What sport makes the most money? That’s hard to tell.
Instead, sportsbooks rely on heavy betting volume based on their biggest events of the year. For example, the NCAA March Madness Tournament or the Super Bowl.
How much is bet on the Super Bowl? That depends on the state.
In total, experts predicted around 23 million Americans would bet on Super Bowl LV for a total of $4.3 billion. Each state with legal sports betting likely drew in tens of millions’ worth of betting handle.
The AGA predicted that 47 million Americans would place wagers on the March Madness tournament. That included a 206% increase in online bets from 2019.
As for other sports, the Major League Baseball World Series generates plenty of interest among sports bettors. A Houston business owner named “Mattress Mack” placed a $2 million bet on the Houston Astros to win the World Series at +1000.
If the Astros win, that would represent the biggest payout in the history of sports betting at $22 million.
Other sports like basketball, mixed martial arts, and NASCAR need more time to study for their betting potential. Each of these professional leagues develops its own style of sports wagering. That’s accomplished through apps and advertising partnerships with legal sportsbooks.
Check out Safest Betting Sites for more information on the top online sportsbooks in the U.S. before you make your picks.
Impact of Sports Betting Legalization in the USA
The impact of sports betting legalization in the USA has been massive. The AGA reported back in 2017 that the industry would boost GDP by $22.4 billion.
State, local, and federal taxes from legal sports betting could amass $8.4 billion.
It’s projected that the industry might also be worth almost $20 billion in revenue. That’s only if all 50 states were to legalize sports betting.
After three years, sportsbooks in the USA remain some of the most profitable businesses in the country.
DraftKings reported almost $300 in revenue for the second quarter of 2021. That helped to increase their forecast for this year up to $1.29 billion in total revenue.
Tax revenue on sports betting helps to fund public services. Those services include education, economic development, and treatment for problem gamblers.
States like Illinois, Pennsylvania, Indiana saw between $215 – $400 million in sports betting handle during August 2021. Other states that reported more than $100 million in betting handle for the month included Colorado, Michigan, Virginia, Tennessee, and Iowa.
While Michigan, Tennessee, and Virginia only allow mobile betting, the other states garnered most of their wagers from online sportsbooks as well.
Millions of monthly revenue now pour into over two dozen states, plus Washington, D.C. Five states even posted monthly revenue exceeding $10 million from mobile sports betting.
Seven states reported more than $500,000 in tax revenue from online sports betting in August.
Most of these top states host anywhere from five to more than a dozen mobile sports betting apps.
The U.S. sports betting industry finds itself in a boom period that’s expected to last another decade. At least.
The Rise of Offshore Betting Sites
In theory, legalized sports betting across the U.S. cuts down on offshore betting sites. The market for offshore betting generates anywhere from $50 – $200 billion annually.
That’s hardly a number that should be ignored.
Offshore betting sites have thrived during this period. It shows how bettors and gamblers like to spend their money where they feel most comfortable.
And with the slow legal process to make sports betting available to the rest of the U.S., that’s where the offshore bookmakers step in.
Another major benefit of offshore betting sites might come from better betting odds. Without legal restrictions and constraints, it often benefits customers.
Still, if you’re unsure of where you’re placing your wagers, you’ll need to be careful. That comes with any financial transaction, certainly.
In fact, a major part of the worldwide economy remains offshore. Sports betting comes from a wide variety of markets. Players spend their money wherever they can.
The culture of America and how it views sports betting changed a lot in the last few years. Reputable sportsbooks in the market remain as successful as ever.
Final Thoughts
Sports betting in the U.S. emerged from an outdated law that prohibited gambling in certain jurisdictions. Once that law got overturned, the entire industry became mainstream.
The COVID-19 pandemic slowed the sports world down in 2020. It quickly came back to life when sports returned to normalcy.
At the start of a new NFL season, sportsbooks and states that legalized sports betting were already seeing record-breaking profits. New partnerships intertwined broadcast media, professional leagues, and the gambling industry.
In many ways, the sports betting revolution in America has only begun.
Author’s Bio
Bryan Myers is a freelance writer from the U.S. In 2019, he traveled to 12 countries around the world. Currently, he’s in Puerto Rico after being away from the U.S. for three years. He’s been writing for Safest Betting Sites since August 2019, covering the 2020 U.S. Election, entertainment, crypto, online casinos, and sports betting.
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