Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Acquirer Market Spotlight: Sports and E-sports Betting
Legal Sports Betting Market Growth During COVID-19:
- The legal sports betting market has experienced rapid growth in the past year, with a record setting $961.1 million in gross revenue in Q1 2021.
- This is greater than the $908.8 million in sports revenue generated during the entire year in 2019.
- Altogether, Americans bet nearly $13 billion with legal sports operators in Q1 2021.
- Market growth was hindered by the emergence of COVID-19, with a year-over-year decrease of 46.3% in sports betting gross gaming revenue in Q2 2020.
- A quick rebound in the latter half of 2020 took sports betting revenue above pre-pandemic levels.
- As sports leagues resume full schedules in 2021, Mercator Advisory Group estimates that the online sports gambling market could balloon to $20 billion.
Rapid growth in sports betting is gaining attention not only from investors and regulators but in the world of banking and fintech too. Even though the regulatory environment is friendlier, there are still risks in servicing this nascent industry.