The Explosive Growth of Sports Betting

In 2022, the sports betting market showed the fastest growth in all commercial gaming segments, with a staggering 75% increase in revenue year-on-year.

This growth is more than that of all other streams of gaming revenue combined. This includes slots, table games, and iGaming.

In this infographic from Roundhill, we explore this explosive growth and the factors that are driving it.

What is Driving this Growth?
Legalization, innovation around the user experience, and other new business opportunities are all factors that are driving growth in the sports betting industry.

State-Level Legalization
Legalizing sports wagering at the state level has been a pivotal factor in this equation.

The federal ban was lifted in 2018. Since then, it has become live and legal, in-person and online, in 19 states as of 2020, and 33 states as of 2023.

Additionally, it’s now legal to bet online but not in person in Kentucky and Tennessee. Hence the entire industry in these states is being driven entirely by digital betting.

Innovative Technologies
This frictionless experience is proving to be quite the appeal to consumers, with 86% of sports wagers now being placed online.

In addition to mobile betting, other features are enhancing the sports wagering experience, such as:

In-play betting
Artificial intelligence (AI) and machine learning (ML) to increase prediction accuracy
Digital sportsbooks to create predictive models of customer behavior
Mobile applications for live streaming
All these advancements have opened the floodgates when it comes to new investment opportunities.

Sports Betting Investment Opportunities
A few major sportsbooks currently dominate the online betting market.

DraftKings and FanDuel are the most popular among U.S. bettors. In fact, both of these platforms are used by more than 70% of bettors.