Sports Betting in the US Predicted to Explode by 2025

Sports betting in the USA is only just taking a foothold now but experts believe that in the next five years it’s going to become seriously big business. Projections from gambling experts and industry investors have suggested that by 2025 the industry could be worth as much as $8 billion.

A ruling by the Supreme Court in May 2018 paved the way for individual states to start bringing in their own laws on betting and many have chosen to do so, legalising gambling as a result.

Growing number taking part

Each state is free to make up its own legislation on the subject of gambling, and an increasing number are choosing to rip up the old rules and introduce new, more lenient legislation which permits controlled betting. In little more than a year, 14 states have already introduced sports betting and many more are considering following suit.

At the NYC Sports Betting Investor Summit which took place this week, it was estimated that a minimum of 10 new gambling operators could join the market in the coming years, boosting opportunities for customers to bet.

At present the market is worth around $833 but this figure is expected to rocket in the next few years, hitting $7-8 billion by 2025. Previous estimates released suggested revenue of $5 billion by 2025, so it’s clear that the market is continuing to expand even faster than previous expected.

Caution required

Although there are clear and multiple opportunities presenting themselves within the US sports betting market, investors were quick to warn that not every operator will succeed. Huge costs relating to the acquisition and retention of customers will eat into profits and this along with intense competition could mean that many simply don’t survive.

Another hurdle that many panellists would continue to present a problem was the difficulty with crediting funds to accounts. Credit card companies in the US refuse to allow gambling transactions and this has hampered the ability of some to be able to bet. Approximately 30% of betting transactions in the US are financed from credit cards compared to 80% of bets in Europe. This could be changing in Europe however, as many countries are exploring whether a ban on credit cards in casinos would be appropriate and helpful in combating gambling addiction.