US sports betting has rapidly grown into a $10 billion industry since a 2018 Supreme Court decision allowed US states to legalize the practice. Significant expansion could remain ahead, according to Goldman Sachs Research.
We expect growth to be driven by a combination of new state openings and a higher share of the consumer wallet being spent on sports betting over time, says Ben Andrews, head of leisure and travel research for Goldman Sachs Research in Europe, where legal sports betting companies have a longer history. Based on a model that evaluates states propensity to approve sports betting legislation and consumers spending potential, Andrews forecasts that Americans will legally spend $45 billion on sports betting each year when the market is mature.
Were in the middle innings of the development of the market, adds Noah Naparst, who evaluates sports betting companies for Goldman Sachs Asset Management. At this point, about half the states have legalized mobile sports betting. The product is continuing to get better, with more sports being offered. Promotions are continuing to come down. Existing markets are still growing at a rapid clip. So were not mature yet, but were not in the early wildcat days of the market anymore, either.
Interestingly, the rise of app-based betting has also changed the types of wagers that bettors make. While people often associate sports betting with predictions about what the games final score will be, parlays which combine multiple wagers into a single bet have become increasingly popular. Bettors like them for their potential lottery-like payouts, and operators value their high margins.
The rapid rise of parlays has been a distinctive feature of sports bettings rise in the US, Andrews says. We expect parlay penetration to continue to rise from here, along with improved in-game betting products, and greater personalization across the user experience, bets offered, and promotions.
Naparst highlights the rise of in-game betting as a development that could also have important implications for media companies.
The future of sports betting is the convergence of media and sports and betting, Naparst predicts. Youre watching a basketball game in your betting app, and a player is about to take a free throw. The odds that he or she makes it pop up on screen, and the app asks, Do you want to do this bet or not? Thats where the industry is heading.
Looking ahead to Sundays Super Bowl, Naparst notes that the annual event is quite significant from a customer acquisition and visibility standpoint. But he adds that since its only one game, its not so big from a revenue standpoint. And thats a good thing; because these companies are diversified across a lot of sports and a lot of events, if one event goes against them, they can make it up in the long run.
This article is being provided for educational purposes only. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.
View post:
Why US sports betting could become a $45 billion business - Goldman Sachs
- Iowa-based athletes in betting inquiry sue, say rights violated - ESPN - April 29th, 2024 [April 29th, 2024]
- Roger Goodell tries to reconcile the NFL's embrace of sports betting - NBC Sports - April 29th, 2024 [April 29th, 2024]
- Shedeur Sanders is the betting favorite to go first overall in the 2024 NFL draft - Yahoo Sports - April 29th, 2024 [April 29th, 2024]
- In its second full year, mobile sports betting in Arkansas is set to make over $500 million dollars | Arkansas Democrat ... - Arkansas Online - April 29th, 2024 [April 29th, 2024]
- Rhode Island sports betting revenue dips in March despite handle increase - iGaming Business - April 29th, 2024 [April 29th, 2024]
- Nevada Sports Betting Handle Fails To Hit $800 Million For March - Sports Handle - April 29th, 2024 [April 29th, 2024]
- ESPN BET Vermont Promo Code For April 29th, 2024: Everything You Need to Know - Bookies.com - April 29th, 2024 [April 29th, 2024]
- Minnesota senator's arrest could upend sports betting, other bills - iGaming Business - April 29th, 2024 [April 29th, 2024]
- An Under In A Braves Game? It Could Happen Tonight - Outkick - April 29th, 2024 [April 29th, 2024]
- BetMGM Bonus Code BOOKIES: Get Up To $1,500 In Bonuses On April 28th, 2024 - Bookies.com - April 29th, 2024 [April 29th, 2024]
- Boston Celtics vs Miami Heat Odds, Picks, Props & Injury Reports for Game 4 - Sports Betting Dime - April 29th, 2024 [April 29th, 2024]
- Thanks to NCAA Tournament, Delaware sees uptick in sports betting numbers in March - Delaware First Media - April 29th, 2024 [April 29th, 2024]
- The impacts of banning bonuses on the sports betting and online gaming market in Brazil - Games Magazine Brasil - GAMES MAGAZINE BRASIL - April 29th, 2024 [April 29th, 2024]
- Elon faculty featured in FOX8 report on legalized sports betting in N.C. - Today at Elon - April 29th, 2024 [April 29th, 2024]
- NASCAR Dover 2024 Weekend Betting Recap I NASCAR Gambling Podcast (Ep. 401) - SGPN - April 29th, 2024 [April 29th, 2024]
- MLB Betting and DFS Podcast: The Solo Shot, Monday 4/29/24 - FanDuel Research - April 29th, 2024 [April 29th, 2024]
- Iowa athletes file federal lawsuit against DCI over sports betting probe - The Gazette - April 29th, 2024 [April 29th, 2024]
- Fanatics Sportsbook North Carolina Promo: Bet And Get $1K In Bonuses For April 29th, 2024 - Bookies.com - April 29th, 2024 [April 29th, 2024]
- The Coyotes Are Now Inactive. Their Sports Betting License Is Not - Sportico - April 29th, 2024 [April 29th, 2024]
- DraftKings $200 Promo Code: Bet $5, Get $200 In Bonuses On April 29th, 2024 - Bookies.com - April 29th, 2024 [April 29th, 2024]
- SeguroBet sees sports betting and iGaming strengthened after participation in BiS SiGMA Americas - Games Magazine ... - GAMES MAGAZINE BRASIL - April 29th, 2024 [April 29th, 2024]
- Iowa College Athletes Going to Federal Courts Over Sports Betting Violations - OddsShopper.com - April 29th, 2024 [April 29th, 2024]
- What are the Main Differences Between Esports and Traditional Sports Betting? - Esports News UK - April 29th, 2024 [April 29th, 2024]
- Iowa athletes file federal lawsuit against DCI after sports betting investigation - UI The Daily Iowan - April 29th, 2024 [April 29th, 2024]
- Minnesota Timberwolves vs Phoenix Suns Game 4 Predictions, Player Props & Odds (April 28) - Sports Betting Dime - April 29th, 2024 [April 29th, 2024]
- Sports betting CPI hears from Brazilian Footbal Confederation representatives this Monday - Games Magazine Brasil - GAMES MAGAZINE BRASIL - April 29th, 2024 [April 29th, 2024]
- NBA Betting Promos For Heat vs. Celtics, Game 4 - Winners and Whiners - April 29th, 2024 [April 29th, 2024]
- Betway Sportsbook Promo Code: Grab A First Bet Reset Of Up To $250 For NBA On April 29th 2024 - Bookies.com - April 29th, 2024 [April 29th, 2024]
- Kentucky Derby Projected to Receive More Attention in 2024 - Covers - April 29th, 2024 [April 29th, 2024]
- 38 states rake in millions in sports betting while Oklahoma still waits for legalization - KOKI FOX 23 TULSA - March 29th, 2024 [March 29th, 2024]
- Sports Betting Scandals Are Piling Up. What It Means for Gambling Stocks. - Barron's - March 29th, 2024 [March 29th, 2024]
- Sports betting: How gambling can impact the integrity of the game - WRAL News - March 29th, 2024 [March 29th, 2024]
- A new coalition wants to address the risks of youth sports betting in Massachusetts - Boston Herald - March 29th, 2024 [March 29th, 2024]
- A Better East Texas: Professional sports betting scandals - KLTV - March 29th, 2024 [March 29th, 2024]
- Sports betting won't be legal in Georgia after lawmakers couldn't agree on how to spend taxes - goskagit.com - March 29th, 2024 [March 29th, 2024]
- Sports betting bill will help MN veterans, charities - ECM Publishers - March 29th, 2024 [March 29th, 2024]
- Sports betting won't be legal in Georgia after lawmakers couldn't agree on how to spend taxes - Bowling Green Daily News - March 29th, 2024 [March 29th, 2024]
- NCAA set to push states with legalized sports betting to ban prop bets for all college sporting events - Yahoo Sports - March 29th, 2024 [March 29th, 2024]
- Sports betting addiction on the rise - Toledo - WTVG - March 29th, 2024 [March 29th, 2024]
- Pritzker eyes bigger piece of Illinois sports betting action after 4 booming years - WVIK - March 29th, 2024 [March 29th, 2024]
- All Eyes on Georgia Sports Betting During Final Legislative Day - Sports Betting Dime - March 29th, 2024 [March 29th, 2024]
- Best North Carolina sports betting promos for UNC vs. Alabama in Sweet 16: Claim thousands in NC sportsbook ... - Sporting News - March 29th, 2024 [March 29th, 2024]
- South Carolina Sports Betting 2024: Best SC Sportsbooks - The Hudson Reporter - March 29th, 2024 [March 29th, 2024]
- A Better East Texas: Professional sports betting scandals - KTRE - March 29th, 2024 [March 29th, 2024]
- Sports betting hits ground running | wltx.com - WLTX.com - March 29th, 2024 [March 29th, 2024]
- North Carolina reports nearly $200m in handle in first week of legalized sports gambling - EGR Global - March 29th, 2024 [March 29th, 2024]
- I got over 100 messages telling me I suck: UNC basketball star concerned with hate messages after sports betting takes off - WGHP FOX8 Greensboro - March 29th, 2024 [March 29th, 2024]
- Fanatics replaces PointsBet in Kansas - Sports betting - iGB - iGaming Business - March 29th, 2024 [March 29th, 2024]
- Sports betting addiction on the rise - Wichita - KWCH - March 29th, 2024 [March 29th, 2024]
- 'March Madness' Sports Betting Is Big Business - Investopedia - March 29th, 2024 [March 29th, 2024]
- Get $250 in bonus bets for UNC vs. Alabama with this NC sports betting bonus before tonight's 9:39 p.m. ET tip-off - syracuse.com - March 29th, 2024 [March 29th, 2024]
- IGA executive director confident of California sports betting with tribal help - iGaming Business - March 29th, 2024 [March 29th, 2024]
- Georgia Sports Betting Legislation Fails Once Again - Winners and Whiners - March 29th, 2024 [March 29th, 2024]
- Sports betting won't be legal in Georgia after lawmakers couldn't agree on how to spend taxes - The Caledonian-Record - March 29th, 2024 [March 29th, 2024]
- Sports Betting Scandals: Ohtani Fallout and NCAA Prop Betting Ban - SportsGrid - March 29th, 2024 [March 29th, 2024]
- Sports gambling has gotten out of control - The Philadelphia Inquirer - March 29th, 2024 [March 29th, 2024]
- Best Sports Betting Apps in the US in March 2024 - Gaming Today - March 29th, 2024 [March 29th, 2024]
- Survey finds majority of Canadians want immediate nationwide sports betting ad ban - EGR Global - March 29th, 2024 [March 29th, 2024]
- Authorizing sports betting in Georgia may lack needed votes from lawmakers - goskagit.com - March 29th, 2024 [March 29th, 2024]
- Sports Betting is coming to NC in one month - WWAY NewsChannel 3 - February 13th, 2024 [February 13th, 2024]
- $3.5 million wagered across Maine in first Super Bowl since launch of online sports betting - Maine Public - February 13th, 2024 [February 13th, 2024]
- Sports Betting Bill Clears Another Missouri House Committee - Covers - February 13th, 2024 [February 13th, 2024]
- I-TEAM: Sports Betting/Online Gambling Addictions growing on CT college campuses - Eyewitness News 3 - February 13th, 2024 [February 13th, 2024]
- Ohio gamblers place more than $7.6B in bets in first year - Dayton Daily News - February 13th, 2024 [February 13th, 2024]
- Sports betting in Minnesota: What are the odds it becomes legal? - KARE11.com - February 13th, 2024 [February 13th, 2024]
- North Carolina Issues First Batch of Sports Betting Licenses to Suppliers - Covers - February 13th, 2024 [February 13th, 2024]
- Will Kentucky cover the spread vs. Ole Miss? Betting Trends, Record ATS - WYMT - February 13th, 2024 [February 13th, 2024]
- NFL Playoffs Fuel Record-Breaking Contributions From Maryland's Sports Betting - Bay Net - February 13th, 2024 [February 13th, 2024]
- Will Louisville cover the spread vs. Boston College? Betting Trends, Record ATS - WYMT - February 13th, 2024 [February 13th, 2024]
- BetMGM and X Sign Exclusive Sports Betting Partnership - PR Newswire - February 13th, 2024 [February 13th, 2024]
- Gambling disorders on the rise nationwide after legalization of sports betting - Q2 News - February 13th, 2024 [February 13th, 2024]
- Will Colorado State cover the spread vs. San Diego State? Betting Trends, Record ATS - Wyoming News Now - February 13th, 2024 [February 13th, 2024]
- Will Michigan cover the spread vs. Illinois? Betting Trends, Record ATS - WLUC - February 13th, 2024 [February 13th, 2024]
- Are the Suns favored vs. the Kings on February 13? Game odds, spread, over/under - WYMT - February 13th, 2024 [February 13th, 2024]
- With three months in the books, Maine sports betting readies for Super Bowl - Press Herald - February 13th, 2024 [February 13th, 2024]
- Sports betting is coming to X as Musk's site partners with BetMGM - Washington Times - February 13th, 2024 [February 13th, 2024]
- Hard Rock Bet Promo Code: Sign Up And Claim $100 In Bonuses - RotoWire - February 13th, 2024 [February 13th, 2024]
- Will North Carolina cover the spread vs. Syracuse? Betting Trends, Record ATS - KNOP - February 13th, 2024 [February 13th, 2024]
- State Rep. Blackshear: 'Nave' to think sports betting isn't already taking place in Alabama - Yellowhammer News - February 13th, 2024 [February 13th, 2024]
- Will Creighton cover the spread vs. Georgetown? Betting Trends, Record ATS - WYMT - February 13th, 2024 [February 13th, 2024]