The gambling hub of the world legalized sports betting in 2018, three years have passed since the substantial ruling, but the earning potential of the market has kept on increasing since, with more and more US states joining the decriminalization wave of sport betting activities. Earlier Nevada was the sole state to have legalized sports betting in the US but the multi-billion-dollar betting industry got a huge boost forward when US Supreme Court ruled the PASPA (Professional and Amateur Sports Protection Act) law unconstitutional which had been in effect since 1992 and allowed just a couple of states to legally continue sports betting while it banned other states from legalizing sports betting activities.
One of the key factors that led to the legalization of betting was to decrease activity with offshore operators and stop the money from bleeding outside of the economy. As per the data by AGA, about 52% of US sports bettors are engaging in illegal betting activities while some remain in the dark about its legality with numbers as high as 74% of betters who are not aware of the illegal nature of betting. With the wave of legalization number of sports fans has shifted to legal sportsbooks.
The pandemic though changed the face of the sport in 2020 but sports betting established itself as a game-changer in the US while the sports sector found itself on uncertain ground and continues to be in 2021. As per the data by American Gaming Association, the people spent about US$3 billion on sports, the highest ever in a single month in October 2020, and year on year in America the revenue increased at an astonishing rate of 53.5 percent to US$237.5 million. As the opportunity for growth remains immense in a few years 80 percent of all US states would have legalized betting.
Major Players in the Industry
In a short span of time, two players have established themselves as the leaders of the U.S. gambling industry- FanDuel and DraftKings. They established themselves with daily fantasy sports and are now known as bookmakers and online casino operators and cut through the competition to take a larger part of the pie in the New Jersey market first and thereafter rest of the country.
COVID-19 pandemic forced the traditional casinos to close down, forced the users to shift online and hence an opportunity opened up for both the players to engage more audience, and now their market share is about 80% of the U.S. market.
The industry has leveraged the opportunity and many betting partnerships have been inked already, most notable ones being multi-year sportsbook deals between Major League Baseball’s (MLB) Chicago Cubs' contracts with DraftKings which has been valued at US$100 million. NBA has been active as well and signed many betting data partnerships of which 20 are with gambling companies. Scott Kaufman-Ross on the topic shared that, “The goal is to partner with every sportsbook in the United States,”. The industry serves as a rich and easy way to make up for the losses, leagues and clubs have suffered due to Covid-19, MLB’s loss was upwards of US$3 billion in 2020 because of a short season.
The Big Picture
While the industry instead of being restricted as just an income source could be targeted for a wholesome approach for a company and a way to engage fans while indulging in multiple marketing opportunities, as part of the big picture. While the commercialization of sports and the increased dependence on digital media has been a major boon to the sports industry, NBA saw a major increase in revenue after the sports betting USA market was legalized and the amount was approx. $585 million.
Technological advancements have forced the field to stay competitive and engage the audience by proving up-to-date odds and betting features that would help in retaining the customer in the long run. By partnering with sports data providers to provide ball-by-ball and in-depth data they could support online wagering, which essentially contributes to more than 80% of the gaming industry revenue.
Choosing a good sports betting data provider is of utmost importance now more than ever. Taking the liberty to save time and effort, Data Sports Group is the right choice for all the sports betting data needs, betting operators could access an extensive sports database that would help in the informative and insightful analysis and faster decision making. The data could be adapted with odds from leading bookmakers and combined in a single interface for seamless integration. The rich database could also serve as a secondary validation source for the operators. Their interactive widgets system makes presentation easy as well. With the pandemic showing no signs of slowing down and the second wave again threatening the world economy, the dependence on online betting is much higher than before, take advantage of the unique opportunity and sail ahead.