US Sports Betting: How Many Billions Will be Wagered?

There’s no question sports betting in the United States is big business. It has been for a number of years. But the states are now able to see that. The overturning of the Professional and Amateur Sports Protection Act of 1992 in 2018 moved sports gambling to the forefront. Legal US sports betting has become a $10 billion industry, according to Goldman Sachs. But the company says that’s just the beginning for US sports betting. It predicts sports betting can grow to a $45 billion business.

The majority of states now have some form of legalized sports gambling. But there are two notable exceptions, California and Texas. Those two states alone make-up a little more than 20% of the U.S. population. That translates to a lot of people who can’t legally wager on sports. But they will jump into the fray when their states get around to legalizing it.

“We expect growth to be driven by a combination of new state openings and a higher share of the consumer wallet being spent on sports betting over time,” said Ben Andrews, head of leisure and travel research for Goldman Sachs Research in Europe, in a company release.

New Bets Lead to More Wagers

Goldman Sachs’ research uncovered that parlay wagers have become very popular in US sports betting circles. As a result, more money is being wagered on those types of bets. While bettors can win a lot of money, the house enjoys a decided odds advantage on parlays. There’s a reason why parlays are loved by the nation’s top bookmakers.

“The rapid rise of parlays has been a distinctive feature of sports betting’s rise in the US,” Andrews said. “We expect parlay penetration to continue to rise from here, along with improved in-game betting products, and greater personalization across the user experience, bets offered, and promotions.”

The continued improvement of live betting platforms has also helped lead to more wagers. Sports gamblers can now place wagers during the game on adjusted point spreads, totals, player props and more. And it’s only to going to get better.

“The future of sports betting is the convergence of media and sports and betting,” said Noah Naparst, who analyzes sports gambling firms for Goldman Sachs Asset Management “You’re watching a basketball game in your betting app, and a player is about to take a free throw. The odds that he or she makes it pop up on screen, and the app asks, ‘Do you want to do this bet or not?’ That’s where the industry is heading.”

For gambling news, odds analysis, and more, visit Point Spreads Sports Magazine.

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