The Future of Sports Betting
How
many of you have been sitting at home during the pandemic not being able to
travel, go to a concert, or a sporting event asking, "Where am I going to get
entertainment?" The COVID-19 pandemic forced all major U.S. sports leagues into
shutdown in March of 2020 but as the year continued, leagues started up again
in differing formats. The success of the leagues upon returning varied. Major
League Baseball held a 60-game mini-season with no fans in the stands and lost
more than $3 billion in revenue. The NBA lost $1.5 billion and Major League
Soccer lost $1 billion in revenue with both leagues finishing their seasons in
a bubble at Disney World with no fans.
Enter
sports betting. With most fans stuck at home, and even live sports TV ratings
dipping, the sports betting industry has quickly grown in popularity across
America. It has even grown on Wall Street with stocks like DraftKings and Penn
National Gaming rising almost 336% and 263% respectively in 2020. Recent
lockdowns have provided an opportunity for these online sportsbooks to invest
in technology that enables more betting opportunities.
In
2018, the supreme court struck down a federal ban on sports betting, which left
the door open for states to legalize it. Currently there are at least 25 states
have legalized some form of sports betting, and as of December 2020, more than
$31 billion has been wagered on sports. The tax revenue opportunities are too
much for the states to pass up, especially given the COVID-19 pandemic. There
will be challenges such as lawsuits/litigation over losses from wagering
websites, teams, casinos, etc. but it has certainly taken off. Industry
observers and stakeholders are optimistic about the future of sports betting with
projections to reach about $13.5 billion by 2025, according to an estimate from
MGM Resorts International.
How
many of you have decided to cut cord and move to streaming tv? FuboTV Inc. has
confirmed plans to acquire an online sportsbook that it eventually plans to
integrate into its TV platform. As sports fans increasingly desire interactive
sports events, especially during the pandemic, sports betting is sure to become
a key component of fan engagement. So, imagine you sit on the couch and turn on
a game but before they show the game, they ask if you want to bet on it. Do all
the competitors in this space end up doing the same thing? Can you imagine
betting on drone races? What's next? We'll find out soon.
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!