The legalization of sports betting in the United States has drastically altered the country’s economic landscape. Since its introduction, it has provided an additional source of revenue for states and created dozens of new jobs and industries related to sports gambling. This new source of income has been particularly beneficial for state governments struggling with budget deficits and tight finances, providing them with a much-needed injection of cash.
Sports betting is now a multi-billion dollar industry in the US, but how much has it impacted the economy, and what can be expected from this industry in the coming years?
Size of the Market
States have different laws when it comes to sports wagering. Depending on the state, there are different types of sports betting available. For example, some states allow for online sports betting, while others only allow in-person wagers at licensed casinos or racetracks. Additionally, some states may also offer mobile sportsbook apps that enable you to place bets from your smartphone or tablet.
Despite the peculiarities of each state, the betting market has grown a lot since 2018. Currently, a total of 36 states have legalized sports gambling, and another three could get into the game this year.
As far as mobile sports betting is concerned, it is legal in 26 states.
According to data from the American Gaming Association, in the first ten months of 2022 alone, Americans wagered $73 billion legally on sports, which represents up to 70% year-over-year.
For their part, betting companies generated $5.77 billion of those wagers in 2022. In contrast, the states and the federal government generated an estimated $1.3 billion.
Casey Clark, a senior vice president at the American Gaming Association (AGA), says that 2022 has been the best year for sports betting and when the most significant growth has been recorded.
“Last year was a record-breaking year for the gaming industry,” says Clark. “And certainly, the continued expansion and adoption of and maturation of legal sports betting across the country contributed to that.”
In terms of job creation, the betting industry employs 1.7 million people in 40 states.
Betting Activity
Las Vegas is no longer the mecca for betting. However, the state is still the favorite to visit a casino and enjoy a show during a weekend getaway; New York is the state that is positioned as number one in sports betting revenue, with $1.07 billion from January through October 2022.
“It has been a remarkable, record-setting first year for online sports betting in New York with only nine operators,” Sen. Joe Addabbo told LSR.
“I’m grateful to have joined others in the state in putting for a product that New Yorkers deserved, and appreciate the benefits to our economy, in addition to educational and addition program funding.”
During the same period, Illinois is second with $616 million, and New Jersey is in third place with $595 million.
The Future of the Industry
The future of legalized sports gambling looks promising, especially as the number of states with legal bets is expected to increase by 2023. The ‘sports betting revolution’ has been gaining momentum in recent years as more and more states are legalizing the activity.
Massachusetts is a state that is looking forward to the arrival of legal betting in the first months of 2023. Bettors are already beginning to take advantage of the Massachusetts Sports Betting Promo and lawyers estimate that the state could generate $60 million in betting revenue.
Experts predict that the industry will continue to boom across America over the next few years, with forecasts expected to reach $167.66 billion by 2029.
In the coming years, the betting industry will be one of the most relevant and lucrative in the USA, contributing enormously to the economy and society.
