Since 2018, when the US Supreme Court struck down a ban on sports betting, the world has watched as American gambling has come out of the shadows and into the fore. Investors have watched companies like Draft Kings, Flutter, MGM, Caesars and Penn Entertainment move to centre themselves in this new world. Here in Australia, companies like Betmakers and PointsBet have also tried to capitalise in the US as the world’s largest sports market transforms itself into the world’s largest sports-betting market.
As a new NFL season kicks off, a recent survey has shown just how quickly sports betting is growing in the United States. A survey from the American Gaming Association (so be wary of the source here) suggests that 73 million Americans plan to wager on the NFL this season, which is an increase of almost 60% from last season.
A lot of this increase can be attributed to legalisation in more and more states. Sports betting is now legal in 34 states and Washington DC, and is also legal but not yet operational in another 4 states. Once legal, these sports books have also been able to start advertising in many of these states, further contributing to growth. But this growth can also be attributed to the growing embrace of sports-betting by the leagues themselves. In 2021, the NFL signed five-year deals worth an estimated $1 billion combined with DraftKings, FanDuel and Caesars to become the league’s official sportsbook partners. And recently, the NFL signed a deal with Australia’s poker-machine maker Aristocrat, to allow NFL-branded slot machines on casino floors across the country.
The ultimate sign of sports betting’s mainstream acceptance came in August when Disney moved into the space. Disney owns sports broadcaster ESPN, but the family-friendly brand has been reluctant to move into the sports betting space. Until now. ESPN signed a 10-year, $2 billion deal with Penn National to license the ESPN brand for Penn’s sports book. If Disney are willing to move into this space, it is a sign that American’s attitudes towards sports betting are changing.
As this flood of money moves into the space there have been challenges. Over the past two years, at least 10 players have been suspended for betting on NFL games in violation of the NFL’s gambling policy. And recent studies have suggested that rates of gambling addiction are reaching all time highs in the United States.
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