Key statistics show massive growth in US sports betting market
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Economic figures from the first quarter of 2022 are becoming finalized, and Q2 numbers are coming in. In brief, we can say of the US sports betting market that, not unexpectedly, growth continues at its rapid and steady pace as more state governments join in legalizing sports betting. Some of the key statistics coming out recently include the following.
• Already the single heaviest bet-upon event of them all, Super Bowl LVII drew $76.1 billion in bets in 2022, according to American Gaming Association estimates, representing a massive 78% year-on-year increase.
• U.S.-based sports betting companies earned some $211 million in gaming revenue in February 2022, a 39% y.o.y. increase, according to US News and World Report.
• Based on the early 2022 numbers, financial consultancy Grand View Research has forecast the U.S. sports betting market to be w orth some $140.3 billion by 2028.
• Draft Kings now claims an approximate 25% share of the US sports betting market. For Q1 2022, company revenues were reported at $417.2 million, a 33.6% y.o.y. Draft Kings CEO Jason Robbins has announced his company’s increase to their projections for FY 2022 from $1.86 billion-$2.0 billion to $1.93 billion to $2.03 billion. However, the value of Draft Kings stock seemed to have peaked on March 1 at $23.22; five months late, the price was down to $15.37/share, a 33.9% drop in value.
• Nielsen Research estimates show that some $725 million was spent on television advertising for online gambling outlets in 2021, a nearly 250% increase y.o.y. Bloomberg News has estimated the average cost of acquisition is $500 per customer.
With Massachusetts legislators recently passing a bill to legalize sports betting in the state, the number of states which have now legalized numbers 35, with California voters to decide on the issue in November. For the time being, the only conclusion is that the US sports betting market will continue to grow for some time yet.
