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Fueled by new states going online, Americans bet a record $119.84 billion on sports betting in 2023. Source: svetikd/E+ (via Getty Images). |
Spending on legal sports betting reached new heights in 2023, but the rate of growth may slow this year as no new states adopt the practice.
Americans bet a record $119.84 billion on sports betting in 2023, an increase of 27.5% from 2022, according to the American Gaming Association’s Commercial Gaming Revenue Tracker. These bets translated into revenue of $10.92 billion in 2023, an increase of 44.5% year over year. According to the gaming industry trade group, the difference between all wagers combined and revenue growth was linked to a domestic hold rate of 9.1% last year, up from 8.1% in 2022. Hold refers to the percentage of money that a sportsbook or bookmaker retains after all bets have been settled.
The American Gaming Association (AGA) notes that the latest data for Kentucky and Arizona is not yet included, so the numbers for the end of 2023 will continue to rise.
AGA executives attribute the industry-wide improvement to the expansion of legal sports betting to 38 states and the District of Columbia.
The sports betting industry benefited from five states taking effect in 2023: Kentucky, Maine, Massachusetts, Nebraska, and Ohio. Combined, these five states brought him $1.49 billion in sports betting revenue last year.
Ohio finished the year fourth among states in sports betting revenue with $936.6 million. Massachusetts was ninth with $483.2 million.
The legal sportsbook ended 2023 on a high note, with $40.02 billion in wagers in the fourth quarter, an increase of 34.4% from the final period of 2022. The start of the NFL and college football, MLB postseason, and new NBA and NHL seasons. Revenues totaled $3.41 billion, an increase of 30.8% year over year.
Prospects for enactment
Industry earnings should remain strong in the first quarter of 2024 as well.AGA estimates that Americans are betting $23.1 billion on the 2024 Super Bowl and the upcoming new states. North Carolina State plans to offer online sports betting on March 11 in conjunction with the March Madness college basketball tournament.
Although 2024 has gotten off to a strong start, it will be a difficult year compared to 2023. Chris Silk, AGA’s senior vice president of government relations, told reporters on February 20 that it was unclear how many more states, if any, would join the legal sports betting roster. . this year.
“Some of them have pretty significant political challenges in terms of legislating sports betting itself.” Silke “If you look at the map, there are potentially two or three states that could do some activity this year and cross the finish line. It could be zero, and that would be unfortunate,” he said. But that’s the situation now.” That’s the progress we’ve made over the past almost six years. ”
Alabama, Georgia, and Missouri are among the states likely to pass legislation this year.
Absent significant additions by states, growth in 2024 and 2025 is likely to come from increased activity in maturing jurisdictions, said David Forman, AGA’s vice president of research. Forman specifically pointed to gains made in 2023 by New Jersey and Illinois. New Jersey legalized sports betting in June 2018, just one month after the Supreme Court struck down a federal ban on sports betting. Illinois legalized sports betting in 2020.
The legal sports betting market will continue to grow with bettors migrating from illegal betting establishments and new customers entering sports betting in general. Forman said.
In 2023, New York was the state with the highest revenue at just under $1.7 billion, an increase of 24.2% from the previous year.New Jersey, up 31.9% to $1.01 billion, slightly ahead of Illinois To regain second place.illinois income Sales increased by 26.1% to $1 billion. After Ohio State, Pennsylvania ranked fifth with a 15% increase in revenue to $686.9 million.
total game
Overall, the U.S. commercial gaming industry achieved a new revenue record for the third year in a row, with each sector recording its best performance. Total revenue from land-based casino games, sports betting, and iGaming reached $66.52 billion in the calendar year, an increase of 10% from the previous record set in 2022, AGA reported.
When the National Gaming Commission of India reports later this year, total annual gaming revenue in the United States is expected to approach $110 billion.
All told, brick-and-mortar casinos will grow 3.3% in revenue from slots and table games to $49.36 billion in 2023, while iGaming, which is currently only available in six states, will bring in revenue by 22.9% to $6.17 billion. have become.
Gambling taxes in 2023 generated $14.4 billion for state and local governments, a 9.7% increase from 2022 levels, according to the AGA.
Commercial land-based gaming, including casino slot machines, table games, and retail sports betting, accounted for $50.02 billion, or 75.3% of total revenue in 2023. Online gaming generated $16.43 billion and accounted for 24.7% of total revenue.
Jurisdictional monitoring
Of the 35 commercial gaming jurisdictions that operated in 2022 and 2023, 31 jurisdictions reported increases in total revenue from land-based casino gaming, sports betting, and iGaming. 28 new annual records were registered.
Three states continued to see low-single-digit declines in 2023: Florida, Indiana, and Mississippi. Washington, D.C., which only offers sports betting, saw a 17.6% withdrawal, the largest decline of all jurisdictions. Washington is home to the NFL’s Commanders, the NBA team Wizards, the NHL’s Capitals, and the MLB team Nationals.
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