Despite many states' hesitation to authorize sports betting activity, sports betting has continued to grow in popularity in the United States.
It appears as if the proponents of its legalization have struck a fortune as is evident by how significantly the betting market in the US economy has grown over the years.
The market for sports betting was worth USD 83.65 billion in 2022, and it is anticipated to rise at a CAGR of 10.3% from 2023 to 2030.
The significant change in the gambling industry's legal environment in the US can be traced back to the prevalence of connected devices, and the growth of the digital infrastructure which has collectively influenced the demand for sports betting. Unfortunately, a few years back due to worldwide limits on sporting events, the COVID-19 epidemic had a significant impact on the global sports industry. Nonetheless, the global gambling sector gained popularity throughout the pandemic with the rise of eSports and other comparable types of betting.
There are several variables, including growing acceptance of online gambling, increased disposable incomes, and technical improvements which has made it simpler for consumers to gamble on their preferred teams or players.
But mainly, the two main attributes that have had a huge impact on the Sports Betting Industry, especially the US economy have been:
Digitalization and technological developments:
Sports betting providers have been able to streamline their platforms and give customers a satisfying betting experience as a result of global technological advancements in betting software and smartphone trends. Also, the adoption of digital technology is luring new customers to the sports betting business, spurring market expansion.
Legalization of Sports Betting:
Governments all over the world are likely to loosen the restrictions on betting and gambling, which will present profitable prospects for both betting operators and customers. For instance, Sports betting is already permitted in 36 states as of January 2023, up from 32 in 2021, according to the American Gaming Association, it has accelerated the gambling industry expansion.
If we analyze the impact of sports betting in the United States alone, from the legal standpoint, the decision to invalidate The Professional and Amateur Sports Protection Act by the Supreme Court in 2018 (PASPA), has opened the curtains for growth in the country.
Legalized sports gambling has not only given states and local governments a new source of income, it has also led to creation of thousands of new employment and increased investment in athletic facilities.
The prevalence of a vibrant betting industry is evident in the US as per a survey by Pew Research Center survey, which reports that one-in-five American adults (19%) have personally wagered money on sports in some capacity in the previous year, whether it was with friends or family, in person at a casino or other gambling establishment, online, or through a betting app.
Usually, bets are placed through sportsbooks, sometimes referred to as bookmakers or bookies. Sportsbooks are available online as well as in physical locations like casinos or betting shops. With the growth of the sports betting industry, the number of bookmakers in the market has seen a significant risen as well, also as seen by the Pew Research Center survey mentioned above, even bettors are increasingly interested. The amount wagered by online bettors also broke the record in 2022 as NCAA’s March Madness and NFL spiked the number of wagers made in the US Market and set a new record for the industry.
Now, what does the future entail now for legalized sports gambling?
Legalized sports gambling appears to have a bright future. States are now free to legalize and regulate sports betting within their borders after the Supreme Court decision in 2018 that invalidated the Professional and Amateur Sports Protection Act (PASPA). It had given state economies a much-needed boost while also opening up a whole new universe of opportunity for operators and bettors alike. In the end, it is becoming obvious that regulated sports gambling will gain more and more traction in the upcoming years, presenting thrilling chances for all parties concerned.
In the past year itself, Online sports betting was introduced in five states, including the hub of gambling, New York. With more states legalizing sports gambling it is bound to raise the number of total wagers, the industry would continue to witness this trend in the near future as 2023 and onward, and more states will jump on the bandwagon. But the only way for sportsbooks to successfully penetrate the potential market would be to partner with the right sports data provider. In order to provide authentic data, many sports data companies have even entered exclusive rights agreements with leagues.
We offer the ideal answer if you are having trouble deciding which sports betting data providers to use. Try out our Data Sports Group sports betting data API for free. Take advantage of the thriving the US betting market and advance your betting platform ahead.