Five years after the PASPA law was repealed, the online gaming and sports betting industry in the USA has experienced many changes: exponential growth of online betting sites, many states legalizing online sports betting, new laws, restrictions, and regulations regarding advertising… What are the market prospects? What future trends can we expect?
The team at Miscasasdeapuestas.com/us, a Spanish online betting comparison site, tells us everything about the expansion of sports betting in the US market and its regulatory challenges.
Which are the latest states to legalize sports betting?
Massachusetts, Ohio, Kansas, and Maryland have been the latest states to legalize online betting sites in the past year. Kansas launched its mobile betting market in October 2022, after the Kansas Gaming and Racing Commission approved the regulation in collaboration with the Kansas Lottery. Kansas has some of the best betting sites in the country, with BetMGM, Fanduel, and Caesars operating in the market. Massachusetts, on the other hand, legalized online betting in March of this year, although in-person betting was already operational since January. This state also boasts the best sports betting pages, adding WynnBET and Fanatics Sportsbook to the mix.
And what about those planning to legalize soon?
Maine and Kentucky are two states that have already approved sports betting, although we are still awaiting their official regulations and for online betting sites to start applying for licenses – we don’t even have clear launch dates yet.
North Carolina, Vermont, Florida, and Kentucky have also done so, while California remains out of the game until at least 2024, after over two years of constant struggle between the state and local tribes.
Other states like Texas, for example, are very close to achieving some legislative progress to legalize online sports betting this year or the next. However, it is most likely that they will be implemented starting in 2025.
Florida is a state that has made headlines after online sports betting with Hard Rock was legalized and operated for a brief period of 34 days in 2021. They were annulled again due to misunderstandings between the state’s governor and the Seminole tribe.
Now, it is expected that online betting will once again become a reality in Florida, although it probably won’t happen until 2025.
Who bets online in the United States?
In 2022, there were about 19 million people in the USA who placed bets on occasion, and it is projected that this number will increase to 23 million by the end of this year, according to NASDAQ. According to a 2022 study, 6% of adults in the USA bet online, and 15% bet with friends, either online or at a betting shop. The expansion of sports betting in new states helps increase the number, as does the diversification of the player profile, which is increasingly younger and more versatile: both men and women (approximately 30%); Americans as well as Latin American and Spanish-speaking individuals, with this community growing larger. In fact, calculations made by the Leadstar Media team indicate that over 100,000 bettors in the United States are Spanish speakers. The projected number of online sports bets is around $16 billion by 2026. (Source: M&C Saatchi Performance).
Which betting sites dominate the market currently?
The main sports betting operators in the country that generate the most revenue, because they have more users, are present in more states, and are more popular, are Draftkings, Fanduel, Caesars, BetMGM, and Barstool Sportsbook.
Fanduel and Draftkings are undoubtedly the most important. As pioneers in the sports betting market as well as Daily Fantasy Sports, they also have an online casino concept.
The projected number of online sports bets is around $16 billion by 2026. (Source: M&C Saatchi Performance).
What are the main regulatory challenges in the USA for operators?
One of the most interesting things about Ontario’s entry into the iGaming market was the strict enforcement of their bonus advertising rules. In Ontario, operators are not allowed to advertise their welcome offers or betting bonuses; otherwise, they would be penalized with significant fines.
The prohibition of bonus advertising in Ontario has certainly had an impact on the US market. And now, more and more states are applying regulations and restrictions regarding offers and how they are advertised.
For example, terms and conditions must be visibly displayed in all cases, and the use of the term “free bets” has been prohibited. Ohio and Massachusetts recently launched with many concerns about advertising regulations, and the American Gaming Association has tightened the guidelines on how bonuses can be advertised.
What are the future trends for online gaming in the USA?
We expect to see many more states regulating and legalizing the mobile betting market, while regulations become stricter regarding brand advertising and promotions. Once Texas, California, or Florida enter the market, the state will start considering how to more uniformly control the market since the laws and regulations are currently in the hands of individual states, without an overarching federal law. When national regulation comes into play, the rules will become stricter. Nevertheless, the market is experiencing exponential growth and has no intention of stopping.