The sports betting landscape has seen monumental shifts in recent years. From pandemic-fuelled closures to the expansion of legal wagering across the US, market volatility has created no shortage of peaks and valleys for bettors and operators. As the market continues to grow and be regulated, let’s break down the key impacts of major sports betting developments and sportsbooks like 888 Bet.
Pandemic Brings Sports to a Halt
The COVID-19 crisis abruptly halted major sports in March 2020, leaving eager bettors stranded. With popular leagues like the NBA, NHL, and MLB postponing their seasons, over $20 billion in bets were estimated to be at stake. Some daring bettors turned to obscure events like Russian table tennis to get their fix, but most had to wait it out.
While customers itched for action, sportsbooks took a major hit. Industry leaders like DraftKings and FanDuel saw share prices plummet around 45% in the early weeks of the pandemic. And with leading credit agency S&P Global predicting an entire year revenue loss of $3 to $4 billion in the US, the future looked dire.
Key Stats
- $20+ billion in Yggdrasil Unveils New ReelPlay Slot Release at stake amid mass cancellations.
- 45% early share price drops for top sportsbooks.
- Up to $4 billion total revenue loss is predicted for the industry.
The Return and Growth of Sports
When the major leagues finally resumed in the summer of 2020, betting came roaring back. In what some called a “revenge betting” phenomenon, stuck-at-home customers wagered with a vengeance. October 2020 alone generated a record-breaking $3.05 billion in bets, up an astounding 63% from 2019.
With audiences desiring both entertainment and money-making opportunities, sports betting entered an upswing. From 2020 to 2021, year-over-year revenue more than doubled. And leading sportsbooks recorded triple-digit percentage growth throughout 2021.
This growth has kept climbing as more states expand legal betting. In 2021, revenue from legal wagers hit $53 billion, and some projects may quadruple by 2030. Online books have benefited in particular, making up over 80% of the legal market revenue.
Key Stats
- Record $3.05 billion wagered in Oct 2020; 63% yearly increase.
- 100%+ revenue growth for top sportsbooks (2020-2021).
- $53 billion in revenue in 2021; over 80% from online sources.
The Impact of Expanding Legality
While less than 3% of the US could legally bet on sports before 2018, over 50% of all Americans can now place legal wagers in their state as of 2023. This momentum kicked off in 2018 when the Supreme Court allowed states to legalize sports betting at their discretion.
So what’s the impact for bettors? Access to safe, regulated options. Previously, offshore sites and local bookies made up the overwhelming majority of US betting. But legalization brings secure payment processing, strict licensing protocols, authorized operating conditions, and resource programs for responsible gambling.
For sportsbook operators, the ability to legally acquire customers in new states provides obvious financial upside. But it also allows better allocation of marketing resources, operational scalability through state coordination, and the ability to operate retail locations.
As more states continue to adopt legal wagering frameworks, these benefits stand to compound for all stakeholders. And if powerhouse holdouts like California’s nearly 40 million residents join in, the US sports betting landscape could still transform drastically.
Key Stats
- 50%+ of the US population can now place legal wagers.
- Offshore sites previously made up the majority of US betting.
- 36 million CA residents are still without legal betting options.
Walking the Win Tightrope
While players may rejoice when their bankrolls inflate and sportsbooks pop champagne to celebrate milestones, no one in this space is ever standing on wholly solid ground. Teams tank out of playoff contention, odds algorithms falter, and even power outages can swing million-dollar events.
Yet despite the vertigo-inducing ups and downs, the thrill of victory and the prospect of jackpots continues to draw bettors and investors alike to sports betting volatile expanse. And with market hunger still far from satiated, this ever-changing industry could have many more gravity-defying moves still yet to come.
Key Stats
- 63% increase in year-over-year betting during the 2020 pandemic.
- 50%+ growth in US legal market revenue, 2021-2022.
- Probability of continued expansion as more states regulate.
The sports betting world has always been characterized by dynamic shifts, but recent years have seen particularly extreme peaks and valleys. With these momentous highs and lows impacting all market participants, further adjustments are likely to keep this lucrative landscape in flux for operators, bettors, and regulators moving forward. But one sure bet is that the rollercoaster ride is far from over.