Back in May, sports betting experts predicted that the market for legal sports betting in the U.S. had a good chance of growing to $3-$5 billion by 2023. The market has grown at an incredible pace in the months following that prediction. This is a result of more states offering legal betting avenues (especially online) and the NFL season starting.
On Monday, the New York City Sports Betting Investor Summit was hosted by the investment company Morgan Stanley. During the event, panelists predicted that the legal U.S. sports betting market would actually grow beyond $3-$5 billion.
Morgan Stanley in particular estimates that almost $7 billion in sports betting revenue will be created in 2025. Less than a year ago, the firm had previously set the mark at $5 billion, which is a clear indicator that the market has experienced incredible growth since then. The company was not alone in their projections, as Hard Rock, Mohegan Sun, and MGM Resorts all projected similar figures for the legal sports betting market.
To date, the sports wagering market has made more than $800 million in revenue this year. Morgan Stanley is definitely betting on continued exponential growth. Their projection is based off the assumption that there will be 36 states offering legal sports betting by 2025.
This is a huge jump from the 13 states that currently do, but 5 years is plenty of time to pass legislation. There are 6 more states that have or are very close to legalized sports betting, and Colorado voters will decide the fate of a sports betting bill later today. Assuming all of these states move forward with legalization, there will still need to be 16 states that follow suit.
Considering the success that many states like Pennsylvania and New Jersey have experienced so far, other states have a great example of the benefits that legal sports betting provides. However, there are also a few states like Mississippi and Delaware that have floundered, which may dissuade smaller states to legalize.
This is why Morgan Stanley is expecting just 36 states to legalize rather than the full 50. In the unlikely event that all 50 U.S. states do legalize sports betting, Morgan Stanley estimates that the market revenue would double to $15 billion.
While the full 50 and $15 billion isn’t likely, at least 30 states with legal sports betting and $7 billion in market revenue is a great bet. This growth will surely attract a lot of new sportsbook operators looking to cash in on a hot market.
There’s a good chance that many aren’t successful though, considering how expensive it is to grow a customer base. There are already several big operators in the U.S. right now, especially Flutter Entertainment. Flutter owns FanDuel, Paddy Power Betfair, Sky Bet, and PokerStars. The legal sports betting market seems extremely exclusive and reserved for already-successful companies.
Regardless of new operators trying to enter the fray, the market will surely grow and this means great news for bettors looking to place a wager. If your state doesn’t currently offer legal sports betting, there’s a great chance that it will in the next few years.