US Online Sports Betting Market Size Likely to Expand at a CAGR of 12.2% By 2033

As per the current market research conducted by the CMI Team, the US Online Sports Betting Market size is expected to record a CAGR of 12.2% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 5.66 Billion. By 2032, the valuation is anticipated to reach USD 16 Billion.

US Online Sports Betting Market: Growth Factors and Dynamics

• Market Expansion through Legalization: The progressive legalization of online sports betting across various US states acts as a primary driver for market growth. The lifting of the federal ban in 2018 has paved the way for states to individually regulate online sports betting, creating a conducive environment for operators to offer their services legally.

• Technological Innovations Driving Accessibility: The continuous evolution of technology, particularly the widespread adoption of smartphones and high-speed internet, has significantly contributed to the surge in online sports betting. Innovations such as live betting and interactive mobile applications have transformed the user experience, making it more accessible and appealing to a broader audience.

• Strategic Alliances and Collaborations: Partnerships between online sports betting platforms, sports leagues, teams, and casinos are key growth catalysts. Collaborative efforts enhance brand visibility, diversify offerings, and provide operators with a competitive edge. Strategic alliances and mergers within the industry contribute to the overall expansion of the market.

• Rising Fan Involvement: Increased engagement of sports enthusiasts plays a pivotal role in the flourishing online sports betting market. Platforms offering diverse betting options, real-time wagering, and interactive features capitalize on the growing interest of fans in making their sporting experiences more exciting, resulting in heightened user participation and revenue generation.

• Innovative Marketing Strategies: Aggressive marketing and advertising initiatives by online sports betting operators are integral to market growth. Leveraging various channels, including social media and sports event sponsorships, these strategies aim to build brand awareness and attract new users. Promotional incentives such as bonuses and loyalty programs further drive customer acquisition and retention.

• Economic Impact and Revenue Contributions: Beyond the entertainment sector, the US online sports betting market significantly impacts the economy through tax revenues and job creation. State governments benefit from taxation, directing funds towards public services. The economic ripple effect extends across technology, finance, and hospitality sectors, emphasizing the market’s potential for sustained revenue generation and positive economic contributions.

US Online Sports Betting Market: Partnership and Acquisitions

• In 2023, BetRivers is the first to launch EveryMatrix games in Michigan, aiming for increased competitiveness. With promotions like a no deposit bonus and a substantial gaming portfolio featuring 1,288 slots, it now holds the third-largest slots inventory in the state, enhancing its appeal to online casino enthusiasts in Michigan.

• In 2022, PointsBet, a prominent live betting sportsbook, has partnered with IMG ARENA for a two-year streaming collaboration. This venture enables PointsBet to provide bettors with on-demand streaming access to over 40,000 premium games and matches. IMG ARENA, known for its sports data and technology services, enhances the sports, sports betting, and sports media ecosystems through this strategic partnership.

Report Scope

US Online Sports Betting Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the US Online Sports Betting Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Sports Event Cancellations and Postponements: The widespread cancellation and postponement of sports events during the COVID-19 pandemic significantly impacted the US online sports betting market. With fewer sporting events available for betting, the market experienced a decline in user engagement and revenues.

• Economic Uncertainty and Consumer Spending: The economic uncertainty caused by the pandemic led to changes in consumer spending behavior. Many individuals faced financial challenges, resulting in a cautious approach towards discretionary spending, including online sports betting. This economic uncertainty further contributed to a temporary downturn in the market.

• Resumption of Sporting Events: The gradual resumption of sports events, following the easing of COVID-19 restrictions, played a crucial role in the recovery of the online sports betting market. As major leagues and tournaments resumed their schedules, operators gained access to a broader range of events, reigniting user interest and participation.

• Focus on Digital Engagement and Innovation: Online sports betting platforms responded to the challenges posed by the pandemic by intensifying their focus on digital engagement and innovation. This included the development of new features, enhanced user interfaces, and creative promotions to attract and retain users, creating a more resilient and adaptable market.

• Promotional Incentives and Bonuses: To lure back users and stimulate activity, online sports betting operators introduced attractive promotional incentives and bonuses. These included welcome bonuses, risk-free bets, and loyalty programs designed to entice both existing and new customers, fostering renewed interest and participation.

• Strategic Marketing and Partnerships: The recovery of the US online sports betting market involved strategic marketing efforts and partnerships. Operators collaborated with sports leagues, teams, and influencers to boost brand visibility. Aggressive advertising campaigns, both online and offline, played a vital role in re-establishing the market’s presence and attracting a larger audience.

In conclusion, the COVID-19 pandemic has had a mixed impact on the US Online Sports Betting Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the US Online Sports Betting Market:

• WynnBET
• Golden Nugget Online Gaming
• TwinSpires DraftKings Inc.
• FanDuel Group
• BetMGM
• Caesars Entertainment Corporation
• PointsBet
• William Hill
• Barstool Sportsbook
• 888 Holdings
• FOX Bet
• BetRivers
• Unibet (Kindred Group)
• theScore Bet
• Others

The US Online Sports Betting Market is segmented as follows:

By Type

• Line-In-Play
• Fixed Old Betting
• Daily Fantasy Sports
• E-Sports
• Sports Exchange
• Spread Betting
• Others

By Sports Type

• Football
• Cricket
• Tennis
• Baseball
• Volleyball
• Basketball
• Hockey
• Horse Riding
• Boxing
• Golf
• Racing
• Others

By Leagues

• Cricket
• MLB
• NBA
• NFL
• NHL
• LOL