Interest in U.S. Sports Betting and Gaming is Increasing
Betting platforms have seen interest of new users rise significantly after going live in six more US states in 2021, bringing the total to 26 states. It is therefore no surprise that both online sportsbooks and traditional casinos are expected to bring in around $1.5 billion in revenue this year. This according to PlayUSA.
Estimates that college and professional football bets will triple have seen the shares of DraftKings, Penn National Gaming, and Caesars Entertainment to rally more than 20% in the past three weeks.
The U.S. Head online operator 888 Holdings, Yaniv Sherman, commented on recent developments:
“It’s very seldom to see the market segment grow in front of you so quickly. There’s no way around it. The US represents the biggest regulated online gaming opportunity in recent history.”
Investors’ profit is not a guarantee though. While there are millions spent on expensive advertising campaigns, fierce competition, promotions that reward first-time users, legislation and taxation all have effect on profit.
U.S. Sportsbooks do generate revenue, but not necessarily a profit. They cannot control what happens during a game or season. They can only make money by moving odds and balance gamblers on both sides of a given wager.
Nonetheless, during the pandemic, online bookmakers have gained even more attention and interest than before.
Wall Street, however, remains conservative, as data compiled by Bloomberg shows DraftKings’ shares are expected to gain only 13% over the next 12 months.
On this, Jason Ader, Chief Exectuve Officer at SpringOwl Asset Management, said:
“There will be massive sector growth, but the reason to be skeptical in the medium-term is that you can’t spend more money than you’re making forever. It’s going to be fun for the bettors. For the shareholders of the company? We’ll see.”
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Author: iGaming Team