The growth potential in the nascent market for American sports betting is huge. But for now, operators are still losing money a lot of it.<\/p>\n
The big picture: Sports betting is taking a page from the playbook of tech giants like Netflix, Amazon and Twitter, sacrificing profitability in the early days in the hope of ingraining themselves in customers lives.<\/p>\n
Even if youre not a sports fan, youve probably seen or heard the deluge of ads from online sports betting companies offering major financial incentives to use their apps. <\/p>\n
What we're watching: This NFL season will go a long way in determining which companies live to fight another day in the ultra-competitive sports betting arena.<\/p>\n
Where it stands: The Supreme Court only opened the door to widespread legal, online sports betting in 2018, and the sector is still in its infancy.<\/p>\n
State of play: The weekly fantasy sports operators FanDuel and DraftKings have taken the lead with market shares of 33% and 19% respectively, in the first half of 2021, the Wells report says. <\/p>\n
Those companies are shoveling money into marketing and promotions, sometimes including hundreds of dollars of free bets.<\/p>\n
What's next: The operators are chasing a market that has massive growth potential Politzer estimates annual U.S. sports betting revenue could grow to $11.3 billion in 2025, compared to $3.8 billion estimated this year. <\/p>\n
Yes, but: Analysts think consolidation is ultimately the most likely endgame, with 3 to 4 players all but dominating the field. <\/p>\n
There's a Catch-22 for sports books: Making too little money is obviously bad for business, but if they start making too much money it may attract the attention of regulators. <\/p>\n
The big question: Whether regulators become concerned about the gamification of the old in-person betting process too easy, too fun, too instantaneous similar to the scrutiny that Robinhood's received for gamifying stock trading. <\/p>\n
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Competition in online sports betting is fierce and not profitable - Axios<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The growth potential in the nascent market for American sports betting is huge. But for now, operators are still losing money a lot of it. The big picture: Sports betting is taking a page from the playbook of tech giants like Netflix, Amazon and Twitter, sacrificing profitability in the early days in the hope of ingraining themselves in customers lives Continue reading