Five years to the day after the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA), opening the floodgates for legalized sports betting in the United States, a major player finally made its move in the market.
Fanatics announced its purchase of Australian-based sportsbook PointsBet on May 14, marking the apparel and collectibles giant’s foray into the world of sports gambling for the price of $150 million.
The sale spotlighted the consolidation that has defined an industry expected to be a marketplace of variety and competition. Instead, the first five years of legal sports gambling saw four companies assume the vast majority of the market share, while corporations like Fanatics sat on the sidelines — until recently, prompting the question:
How will the next five years of sports betting look?
How many states have legalized online sports betting?
Thirty-three states, plus the District of Columbia and Puerto Rico, have legalized betting. Three more states are preparing for a launch later this year.
According to the American Gaming Association, 39.2 million people placed a traditional sports bet in the last 12 months. A Harris Poll from November 2022 revealed that 71% of sports gamblers bet on sports at least once a week, with 20% of people betting on sports at least once a day.
The average bet spend is between $30-35, with less than two percent of wagers being more than $100. Which points to the idea of the “recreational bettor,” said Sportradar’s North American president and chief operating officer Andrew Bimson, who noted the increasing bets on multipliers and same-game parlays.
According to a December 2022 report from Variety Intelligence, 56% of gamblers said betting is entertaining and 42% determined that it makes games more exciting.
“People are just looking to be entertained,” Bimson told USA TODAY Sports. “They’re looking at this as a component of being a sports fan.”
Since May 2018, the AGA said, $220 billion has been wagered with U.S. sportsbooks. Nearly $90 billion of that figure took place between May of 2022 and April 2023 — a roughly 22% increase year-over-year — as three more states opened markets.
Four major sports leagues (NFL, MLB, NBA, MLS) have deals with sportsbook operators. There are 12 sportsbooks attached to professional stadiums. In his ownership prospectus obtained by ESPN, Washington Commanders soon-to-be owner Josh Harris said sports betting could add $10 million to $15…
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