Big Growth Predicted For US Sports BettingDavid Burgundy | 14 Nov 2019
The NYC Sports Betting Investor Summit took place recently, and the industry experts had some very interesting things to say. Last year, the US Supreme Court overturned the federal ban on sports betting across the USA. Since this happened in May 2018, all states were allowed to regulate the industry and grant licences to operators, should they so choose.
As things stand, 14 states have already created regulations and begun sports betting operations. Several more are likely to follow suit over the next year or so. This has meant that the industry in 2019 has generated around 833 million dollars in revenue so far. Not a bad start for such a newly legalised and regulated industry. The most important thing to note, though, is the fact that industry experts are saying that by 2025, this industry could grow to be worth as much as 8 billion dollars.
An Interesting Summit
This was the word from the panellists at the NYC Sports Betting Investor Summit earlier this week. What’s more, various experts back up these kinds of figures across the industry. The bank, Morgan Stanley, reckons the industry could grow to anywhere between 5 and 7 billion dollars. Major operators in the US have also given their thoughts, saying that the sports betting industry could be worth between 6 and 8 billion dollars by 2025.
This is very exciting news for operators. However, it’s not all positive from the panellists at the summit. They were quick to warn that the competition in the industry in the USA is going to be fierce and not all who enter it will survive. In order to break into the market, an operator will need to put forward a significant amount of capital for promoting their new business and to attract customers away from the competition. Chief information officer of PointsBet, Seth Young, said that the industry in the US is a lot like war and there is likely to be a lot of collateral damage over the coming years.
Space For 10 More Operators
The panellists at the summit did go further to say that it is worth trying to gain a foothold in the US market, if the company has the capital to break in. There are already some major names taking swings at it. These include Mohegan Sun, MGM Resorts International and Hard Rock International. Looking at the numbers, the experts from the summit reckon there is enough room for another 10 operators in the market.