4 minute read
The state of play in the us gambling market
THE STATE OF PLAY IN THE US SPORTS GAMBLING MARKET
Advertisement
Nicole-Robyn Caldwell, International Sales Manager at Because We Can Media, the leading digital marketing agency for sportsbook, gambling, and Esports clients worldwide, previews the US sports gambling market for 2021.
In 2018, U.S. states secured the power to legalise sports betting. Approaching three years on from that historical ruling, what is the situation in the country’s multi-billion-dollar betting market and how influential will gambling be in shaping the U.S. sporting industry?
What is the current situation with U.S. sports gambling?
“Until 2018, Nevada was the only state allowed to offer sports betting, legally. At the start of 2020; 14 states legalised and launched sports betting. Some states allow sports betting online and at physical sites; some do not allow online wagering; others permit sports betting only at specific casinos. However, COVID-19 has had an unfortunate effect on the mobile betting opening up in states, as most legislation sessions were delayed, cancelled, or postponed indefinitely.
“Sports betting is currently legal in over two-dozen states and this is positioned to increase as the year progresses and delayed legislation has been resumed. As a result of the pandemic’s impact, with many states struggling after Covid-19, they are likely to need to reap the benefit from gambling institutions’ taxes.
“Legislation is likely to open up again for online gambling. For example, previously, legalised gambling in Texas
What opportunities are there to market U.S. sports gambling? How influential will gambling be in shaping U.S. sports earnings?
“The one thing that sets the sports industry apart from any other, is the fans. Sports play a hugely important role in society globally, uniting people from all backgrounds with one common interest
would have been impossible for the highly conservative state. The Texas Legislature only meets every two years, and a lot has changed since they last met in 2019. Many of their neighbouring states have changed legislation, putting pressure on Texas to do the same. If successful, Texas will be the largest sports betting market in the U.S.” and shaping memories with sporting moments from a young age. During the pandemic, many have seen sports as a welcome distraction and this has largely been reflected in the uplift in global sports betting. In 2020, the global sports betting industry reached a market size of $203 billion and sports betting revenue
in the U.S. alone is predicted to grow as much as £8 billion by 2025.
“When the pandemic hit, sports teams and events had to quickly pivot amid the absence of live sports to limit the spread of COVID-19. From fake crowd noise to cardboard cut-outs and virtual fans via Zoom, innovation has been the key driver for fan engagement and sustainable commercial success. According to Reuters, Covid-related revenue losses for the four major North American sports leagues - the NBA, NFL, NHL, and MLB - is estimated to be about $12 billion, a 30% drop from the entire last season before the pandemic.
“Now, as teams slowly begin to open up their stadiums and arenas to fans again, the question looms - when is it safe to do so, and will fans return? In a post-pandemic world, 2021 promises to be even more disruptive and game-changing as our minds shift to adjusting from the “New Normal” to the “New Different.”
“Without a doubt, there will be plenty of pent-up demand for sports spectating. In recent history, fans have roared back to the stands following disasters like 9/11. While many people have suffered extreme financial hardship during the pandemic, others have banked their disposable income over the past year.”
What has been done by those looking to thrive in the market and how will this engage fans?
“Many sports leagues and teams have seen the opportunities and lucrative deals linked with sports betting and partnerships. Such as the NBA, which currently holds more than 20 sports betting partnerships with gambling companies, a number that is only set to rise.
“Additionally, Bally’s Corporation, a leading U.S. provider of land-based gaming and interactive entertainment, has been designated as an Authorized Gaming Operator of NHL, NBA, and now the MLB.
“This gives Bally’s access to team marks, logos, and data, which it intends to incorporate across its growing portfolio of sports betting products. The firm will also combine these assets with innovative content created for fans. Sports teams and gambling brands both benefit from the partnership of sharing data and driving fan engagement, and we expect this trend to continue across the market throughout 2021.
“BWCM works with the biggest names in the sportsbooks, gambling, and Esports industry, globally. We know how to reach the most engaged and enthusiastic sports fans on an international scale on a daily basis. With years of experience in the market, we understand the challenges faced by the sports industry and how to implement robust marketing and performance strategies best to encourage the sports industry, as a whole, to grow at the same rate as sports betting revenue.
“This year will be consequential for the sporting calendar. We believe that the state-by-state opening up of U.S. gambling legislation will be crucial for communications between sporting teams and their fans. As a digital marketing agency, we are fully prepared to ensure these communications are efficient and effective for all parties across all platforms.” ◆
