Online Sports Betting Industry Projected to Grow From $9.5 Billion Last Year To $37 Billion In 2025

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Oct 12, 2021, 08:55 ET

PALM BEACH, Fla., Oct. 12, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Despite shortened seasons, canceled tournaments, and low sports programming viewership in 2020, online sports betting thrived in the U.S. According to reported figures from Legal Sports Report, sports bets placed, or 'the handle,' soared by 39% on a year over year basis from roughly $13 billion in 2019 to $18 billion. Sports betting in various formats is legal in 21 states and Washington DC, but online betting has accounted for most of the incremental growth. Another report from Ark-Invest said that: "While only 15 states and Washington DC have legalized 'online' sports betting, in our view the market has burgeoned based on its convenience and entertainment value." It added: "Since it legalized online sports betting in mid-2018, for example, New Jersey has seen its online handle soar to $15 billion, half of which took place in 2020. Today, 90% of all bets in the state are placed online… Based on its $15 billion handle, New Jersey probably has enjoyed a $115 million tax windfall as sports betting companies have generated nearly $1 billion in revenue. New Jersey now rivals Nevada, home of Las Vegas, in total betting volume, as shown in the chart above. Potentially, every state could replicate New Jersey's success with online sports betting. Excluding New Jersey and Nevada, the latest data from states with the largest reported handles provides compelling evidence that consumers prefer mobile and online sports to onsite alternatives." Active gaming and tech companies in the markets today include: Esports Technologies (NASDAQ: EBET), NextPlay Technologies, Inc. (NASDAQ: NXTP), Wynn Resorts, Limited (NASDAQ: WYNN), DraftKings Inc. (NASDAQ: DKNG), Melco Resorts & Entertainment Limited (NASDAQ: MLCO).

Ark-Invest also said: "Data from Pennsylvania and Indiana suggest that that the adoption of online sports betting today is in line with that before the COVID crisis halted all onsite sports betting activities for approximately two months. Since the summer of 2020, for example, the percentage of mobile or online sports betting handles in Pennsylvania, Illinois, and Indiana has been 75% or higher. While the share of online sports betting in Nevada, one of the largest in-person gambling destinations in the world, is lower, it still has topped 50% consistently. Opportunity? Legalized online sports betting is presenting sport book operators and sports leagues with an opportunity not only to offer exciting interactive online experiences but also to capitalize on a highly efficient fan demand curve and generate new sources of revenues. A die-hard New York Giants fan who lives in Illinois but otherwise would be a season ticket holder, for example, can reallocate that capital to an online sports betting viewing experience. According to our research, during the next five years, as the handle for online sports betting scales 10-fold from roughly $18 billion to $180 billion, the three major sports betting categories combined could generate 31% revenue growth at a compound annual rate, increasing the online sports betting category from $9.5 billion last year to $37 billion in 2025."

Esports Technologies (NASDAQ: EBET) – BREAKING NEWS - Esports Technologies Announces Expansion with Addition of Third Office, in Malta - Esports Technologies, a leading global provider of advanced esports wagering products and technology, announced today the planned opening of a new state-of-the-art office in Malta. The Malta location will house the majority of the Esports Technologies team and direct European market operations, working closely with the Esports Technologies office in Dublin. The additional office location will help accelerate Esports Technologies' aspirations to expand into Western Europe, including the UK, Germany, France, Italy, Spain, Belgium, Denmark, Netherlands and Ireland. The new office is scheduled to be operational on November 15.

The Esports Technologies Malta office will join the company's existing locations in Las Vegas and Dublin. The office will have an open floor plan that includes breakout spaces for individual work or small-group collaboration, a full boardroom, and a modern design incorporating esports themes. The workplace will also feature an esports-focused leisure area with gaming consoles, a full kitchen and bar, and direct access to Balluta Bay from the terrace.

Aaron Speach, CEO, Esports Technologies, said, "Europe's esports engagement is on a steep growth trajectory, and we foresee tremendous growth in its esports wagering market. With its educated and talented workforce, strong tech infrastructure, and business-friendly environment, Malta offers the ideal location for us to create new opportunities across Europe. We look forward to providing a work setting designed to foster meaningful collaboration, increase productivity and spark creativity."

This move will help accelerate the company's growth strategy in Europe, which has an estimated esports audience of 92 million. Malta has emerged as an influential hub for esports on the continent. The Mediterranean country was chosen as the host location for both 2021 seasons of ESL Pro League, one of the major professional leagues in esports. Malta, a multilingual country and a hotbed for tech and blockchain, has worked closely with the private sector to establish the country as a global leader in the esports sector. CONTINUED… READ THIS AND MORE NEWS FOR EBET BY VISITING: https://esportstechnologies.com/news/

In other entertainment and gaming recent news of interest:

NextPlay Technologies, Inc. (NASDAQ: NXTP) recently entered into a definitive agreement to acquire 100% of the assets of Token IQ, a leading innovator in digital asset management with its smart compliant token technology. Token IQ has many unique capabilities, but its greatest attributes are its ability to afford cryptocurrency owners a solution to replace their assets should they lose access to, or control of, their assets and its handling of "Know Your Customer" (KYC) issues -- solving many key regulatory requirements. NextPlay will not only look to license the IP, but also plans to integrate the service into its wholly owned Bank – NextBank International to better serve its cryptocurrency customers.

Mark Vange, CTO of NextPlay and founder and CEO of Token IQ, stated, "Token IQ was built upon the early recognition that many digital assets may in the future be treated as securities. I'm excited that we can now make Token IQ part of NextPlay, given the many synergies that have developed around digital asset management across NextPlay's ecosystem."

Wynn Resorts, Limited (NASDAQ: WYNN) WynnBET, the premier online sports betting and casino ("iGaming") app from the global leader in luxury hospitality, Wynn Resorts, recently announced it has obtained market access in Louisiana. Louisiana represents the 17th jurisdiction in a rapidly growing footprint of states in which WynnBET has secured varying degrees of market access.

WynnBET is currently available in Arizona, Colorado, Indiana, Michigan, New Jersey, Tennessee and Virginia. In addition, WynnBET currently has varying degrees of market access to 17* states covering approximately 46% of the U.S. population and is in negotiations to obtain access in seven additional states, which would result in WynnBET's footprint covering approximately 77% of the U.S. adult population.

The online sports betting and iGaming industry's legislative and regulatory landscape is rapidly evolving and WynnBET's access is subject to change as a result. WynnBET has market access agreements or opportunities which will become effective if legalized and regulatory requirements, licensee eligibility, and suitability standards are met. Such market access and licensure are subject to legalization and required approvals by regulatory authorities in each jurisdiction.

DraftKings Inc. (NASDAQ: DKNG), a leader in the digital sports entertainment and gaming industries, recently announced its latest, state-of-the art office location to be based out of Las Vegas, where the company expects to eventually have an expanded team of more than 1,000 employees. The company's new 90,000-square-foot technology hub will occupy much of an entire building at UnCommons, Matter Real Estate Group 's 40-acre modern workplace and stylized mixed-use community coming to Southwest Las Vegas in early 2022.

"Our new office space and Las Vegas expansion further exemplifies DraftKings' investment in its employees and the future of the company, as well as the local community," said Matt Kalish, DraftKings co-founder and president, North America. "Our goal is to create another world-class workplace environment that will foster DraftKings' innovation, further bolster our local presence, and deepen community involvement. With these lofty aspirations, we were thrilled to discover that UnCommons mirrors these high standards."

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) recently reported its unaudited financial results for the second quarter of 2021.

Total operating revenues for the second quarter of 2021 were US$566.4 million, representing an increase of approximately 222% from US$175.9 million for the comparable period in 2020. The increase in total operating revenues was primarily attributable to an improved performance in all gaming segments and non-gaming operations as a result of a year-over-year increase in inbound tourism in Macau. Operating loss for the second quarter of 2021 was US$128.1 million, compared with operating loss of US$370.8 million in the second quarter of 2020.

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