How Big is The Gambling Market in America
The market for legal sports betting in the United States has exploded in recent years and is poised for enormous growth moving forward. What was once a relatively niche and underground industry confined to just a few states is transforming into a nationwide multi-billion dollar juggernaut.
Experts forecast the legal US sports betting market will surpass $10 billion in total wagers by 2025. To put that figure into perspective, just five years ago total annual wagers were under $5 billion. Fueled by a flurry of new state laws legalizing sports gambling and growing consumer acceptance, the market has doubled in size seemingly overnight.
New Jersey led the charge, outpacing all other states with over $6 billion wagered on sports in 2021 alone. But nearly every region of the country is getting in on the action now, as more than 30 US states now offer legalized sports betting in some form. National betting operators like DraftKings and FanDuel have flooded the market with app-based betting, making placing a wager as easy as checking social media on your phone.
Much of this growth has been accelerated by a crucial 2018 Supreme Court ruling that struck down a federal law prohibiting sports gambling in most states. That decision opened the floodgates for state legislatures to pass their own sports betting laws. In addition, the COVID-19 pandemic paradoxically helped betting volumes, as Americans cooped up at home sought new entertainment options online.
Across the pond in Europe, gambling has long been a popular leisure activity and regional giants like the UK are pioneers in the industry. However, expanding markets in the EU and developing nations present massive potential. Countries from France to Poland are liberalizing regulations to tax and license operators, paving the way for licensed providers to sweep in with the wind of change. Simultaneously, advancing technologies allow seamless integration of betting across offline and online mediums, blurring those boundaries.
It’s an amazing turnaround for an industry that was operating mostly in the shadows just a few short years ago. We may have only seen the beginning of how big this market can truly grow.
When it comes to sports betting, the best is yet to come.