US Sports Betting Update – New York drives the market to a record-breaking quarter
The US sports betting handle increased 102% year-on-year to reach a record $23.64 billion in the first three months of 2022. Revenue also shot up by 64.6% to hit $1.58 billion for Q1. Much of the growth can be attributed to the eagerly anticipated arrival of New York in the legal sports betting industry. The first online sportsbooks went live in the Empire State on January 9, and it quickly became the largest market in the country. Total wagers in Q1 hit $4.87, accounting for more than 20% of the nationwide handle.
In the first three months of 2021, US sportsbooks handled $13.02 billion, so the industry has more than doubled in size over the past year. States such as Connecticut and Louisiana have also joined the party since Q1 2021, increasing the overall size of the sector, but sports betting is also growing increasingly popular in established markets across the country.
It is four years since the Supreme Court overturned PASPA, the federal sports wagering ban, allowing individual states to legalize sports betting. “Four years post-PASPA, legal sports betting’s success is proving what we’ve known all along: American consumers are eager to wager within the protections of the regulated market,” said Bill Miller, chief executive at the American Gaming Association. “It also reinforces the need to stamp out offshore, illegal operators who prey on vulnerable customers.”
Maryland’s first retail sportsbooks went live in December 2021, and regulators hope that online sportsbooks will launch during the 2022 football season. Ohio is also gearing up to launch an online sports betting market no later than January 1, 2023, so the positive momentum should continue in the next 12 months. Miller also pointed out that the legal online sports betting market in New York has not cannibalized the markets in neighboring New Jersey and Pennsylvania. They saw wagering activity expand year-over-year by 34.9 and 25.0 percent respectively.
Kansas Governor Signs Sports Betting Bill
Kansas became the latest state to legalize sports betting when Governor Laura Kelly signed bipartisan legislation into law this week. SB 84 passed both chambers in April. It allows each of the state’s four casinos to launch retail sportsbooks. They can each host three online skins too, paving the way for 12 online sportsbooks to compete for market share in the Sunflower State.
It makes Kansas the 35th state to legalize sports betting. The industry is expected to get underway by the fall of 2022, in time to capitalize on the football season. Kansas is the 36th largest state by population and 33rd largest by GDP, so it is unlikely to rival the likes of New York and New Jersey for handle and revenue, but it should still be an attractive destination for leading sportsbooks such as FanDuel, DraftKings, BetMGM and Caesars Sportsbook. It will charge a reasonable 10% tax rate, which should help attract operators. Kansas should also receive visitors from neighboring Missouri, which has not yet legalized sports betting.
Gov. Kelly said the move will boost the state’s revenue and grow its economy. Senator Oletha Faust-Goudeau, Ranking Member of the Senate Federal and State Affairs Committee, said constitutents have been asking for legal sports betting for years. Senator Rob Olson, Chair of the
Senate Federal and State Affairs Committee, added: “I was excited to pass sports wagering in Kansas, it’s something that Kansans are already doing, and it will bring additional tax revenue to our state to help with our needs. My constituents have pushed for this legislation for years, and now, the next time we have a significant sporting event in our state, Kansans will be able to bet on their hometown team.”
Minnesota House Approves Sports Wagering
Minnesota inched closer towards introducing its own legal sports betting industry this week when the House passed HF 778 in a 70-57 vote. The bill had already made its way through five House committees, receiving only minor amendments along the way. However, legislators will need to work quickly. The deadline for the bill to pass the Senate is May 23, which makes it look unlikely.
A poll conducted last month suggests that Minnesotans are in favor of legalizing sports betting in the state. The KSTP-backed survey found that 64% want to see sports wagering made legal, while only 17% oppose the measure and 19% are undecided. The survey featured 556 Minnesotan adults. “Fewer than one in five Minnesotans are opposed, so that really does suggest there’s a lot of public momentum for sports betting,” said Steven Schier, political analyst at Carleton College.
BetMGM Named Exclusive Sports Betting Partner of Houston Astros
Texas is among a dwindling number of states without a legal sports betting industry. Yet BetMGM has made a major foray into the Lone Star State by tying up an exclusive partnership deal with the Houston Astros. It will see BetMGM signage featured heavily at Minute Maid Park during the MLB team’s home games. VIP customers at BetMGM will also be able to take part in exclusive events linked to the Astros, such as throwing out the first pitch, on-field access to batting practice and VIP getaways for away games.
BetMGM and the Astros also will team up to offer special betting promotions for BetMGM customers in neighboring Louisiana. “We are looking forward to our partnership with BetMGM,” said Houston Astros senior vice president Giles Kibbe. “As we continue to strive for new ways to add to the fan experience, this partnership will provide another way for the Astros to engage with our fans.”
BetMGM chief executive Adam Greenblatt added: “The Houston Astros are a monumental addition to our portfolio of strategic partnerships with professional sports teams across the US. The organization's passionate fan base will be key to the growth of BetMGM throughout the South as we look for new ways to engage fans with unique experiences that go beyond the game.”