Published on: September 25, 2024, 02:36h.
Last updated on: September 25, 2024, 02:36h.
According to recent research conducted by a prominent gaming intelligence firm, the legal sports betting sector in the United States is just beginning to flourish.
Vixio Regulatory Intelligence, the research arm of Washington, D.C.-based Vixio Gambling Compliance, a company specializing in regulatory technology that offers clients independent and authoritative regulatory intelligence for compliance, strategy, and development, projects significant growth in the legal sports wagering market in the upcoming years. Vixio predicts that sportsbook revenue will surge from approximately $10.1 billion in 2023 to $24.2 billion by 2028, indicating an increase of nearly 140%.
If more states decide to join the legal sports betting sector, the market’s growth potential could be even greater.
The Vixio report stated, “We forecast the U.S. online sports betting market to be worth $24.2 billion to $27.8 billion in total annual gross revenue by 2028, depending on whether legislative trends align with our base-case or more optimistic bull-case scenarios.”
The surge in U.S. sports betting activity followed the Supreme Court’s decision in May 2018 to overturn PASPA — the Professional and Amateur Sports Protection Act — a federal law that restricted single-game wagering to Nevada. PASPA, enacted in 1992, permitted only Nevada to offer legal sports betting.
Key States in Focus
Currently, 38 states and D.C. have legalized sportsbooks. In the upcoming November 2024 elections, voters in Missouri will decide on authorizing sports wagering, potentially making it the 39th state to do so through a ballot referendum.
Out of the existing 39 sports betting jurisdictions, 31, including D.C., allow mobile wagering. Vixio’s forecast anticipates a total of 33 online sports betting markets by 2028.
Recent polls indicate strong support for the Missouri sports betting referendum. An Emerson College Polling survey revealed that 52% of likely voters would vote in favor of the ballot measure, while only 25% would not. About 23% remained undecided.
Vixio did not speculate on which state could follow Missouri’s lead in expanding the online sports betting market to 33 jurisdictions by 2028.
In recent legislative sessions, states like Georgia, Minnesota, and South Carolina have considered sports betting legislation. However, the real boost in sports betting revenue would come if California and/or Texas also embraced online sportsbooks, two states that have yet to enter the legal sports gambling arena.
California and Texas are the most populous states in the U.S., with a combined population of nearly 70 million people.
iGaming Expansion
Currently, iGaming, which includes online slots and table games, is legal in seven states only — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. While Vixio doesn’t foresee an expansion of this market to eight states by 2028, it does project continued growth in online casino gambling revenue.
Vixio predicts that the iGaming market will generate $18.2 billion to $20.9 billion in gross gaming revenue by 2028. In 2023, the legal iGaming industry earned close to $7 billion from remote players.
If Vixio’s forecasts for sports betting and iGaming materialize, the total legal online gambling market in the U.S. could reach $38.2 billion to $41.8 billion within the next four years.