In the US, Sports Betting is Booming, Thanks to Regulated Online Sports BettingPublished October 12, 2020 by Lee R
New market figures reveal the US market is embracing online sports betting at a historical rate.
A key betting market study has revealed a year-on-year US industry tripling for Q2 from 2019.
The Tripling Effect
Key research provider SafeBettingSites.com has reported online casino revenue's new figure of $402M for Q2 2020 to tripled Q2 2019's total.
The year-on-year growth rate for Q2 2020 totaled out at 253.8%, while H1 2020 turned in an increase of 189.7%.
This growth in the industry came against a drop in land-based casinos overall, to the tune of an almost equally astonishing 80% year-on-year, as sports betting platforms dropped 46.2%.
The exact figure for land-based brick-and-mortar casinos turned out to be a revenue contraction for the year of 78.8%.
Comparing to Q2 2019
The aforementioned figures compare to Q2 2019 which saw total revenue of $10.8 billion, with the Q2 2020 figure all the way down to $2.3 billion. This also represented a disconcerting sequential quarterly drop of 75.6% from Q1 2020. For H1 2020 year-on-year, the total contraction amounted to 45.6%.
A key additional metric of the comparative durations of 2019 and 2020 is the length of opening, with land-based casinos open for a cumulative 42,000 days during Q2 2019; and only open for 10,500 days in Q2 2020.
The Q2 Rubberband
At this juncture, approximately 80% of land-based casinos reopened across the United States by the end of Q2, with many showing spikes reflective of pent-up demand.
As a result, sample states of South Dakota; Ohio; and Oklahoma recorded revenue increases of 42.5%, 19.3% and 9.6% respectively.
Online Casinos Hit
According to the new data, online casinos also outperformed sports betting platforms--with sports betting platforms legal in 18 states, and online casinos operating in 5.
2019 Momentum Offsets Shutdowns
Sports betting came into the year with full momentum, as evinced by a “remarkable” Q4 2019 that saw revenue exceed $360 million.
2020 Covid Declines
However, the subsequent covid-related delays of major leagues and sporting events led to a 46.3% year-on-year decline. Nonetheless, they momentum of pre-covid 2020 saw revenue for H1 sustain a year-on-year increase of 10.4%.
More details can be found at the SafeBettingSites.com website, but one detail is clear: driven by online platforms, sports betting is positively booming in the US.