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2024 Record Highs in Sports Betting: An Unanticipated Surge
SportsGrid
Follow
12/27/2024
Category
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Sports
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00:00
A record-breaking year in sports betting, despite the fact that very few states went
00:08
online, it didn't stop the people who are out there from betting quite a bit, did it?
00:15
No, to your point, Craig, usually when we've talked in the past about new records being
00:20
broken and more money bet than ever before every year, it's kind of a no-brainer.
00:25
You turn a state like New York on, of course you're going to have, you have more states
00:29
now than you did then, it's going to be up.
00:31
But this year we only really had North Carolina, yet total betting is expected to exceed last
00:36
year by about 20%, which is just a huge jump considering we didn't really have many new
00:42
states.
00:43
We're expecting about $150 billion bet total this year.
00:48
And a lot of that is because of operators just frankly making more money and pushing
00:53
the higher margin bets.
00:54
We talk about it all the time with parlays and the same game parlays, at LSR our projections
00:59
have that most operators are going to finish with an average of 9.5% hold, which historically
01:06
is record-breaking.
01:09
Nevada has held about 6% to 7% ever since it legalized sports betting.
01:13
So you see operators are making more money and getting people to bet more frequently,
01:18
getting people to reinvest their bets as well, which is really driving up this hold.
01:23
So you even have a state like Nevada where online sports betting isn't so big because
01:29
of the presence of casinos and because the laws are written in a way that makes it hard
01:34
to register and they want people betting in person.
01:37
But this is going to be the first year Nevada finishes outside of the top five in total
01:41
dollars bet since the 1940s when it first legalized gambling.
01:45
So used to obviously talk about Nevada as the king of sports betting, but it's not even
01:50
in the top five anymore.
01:51
You have states like New York making a billion dollars in taxes in just one year, which is
01:57
much more than lawmakers really could ever have conceived when this industry first became
02:02
legal.
02:03
You know, we've talked a lot about sportsbooks raising their expectations for the total addressable
02:07
market in the next couple of years.
02:09
It seems like this industry is just growing at a much faster pace than we ever imagined.
02:15
And with that, I'd also expect some other players to get squeezed out.
02:18
I think if you took the over on over 0.5 sportsbooks exiting the space every year,
02:24
you'd be a pretty rich, a pretty rich person.
02:27
And we saw points bet drop out.
02:28
We saw, you know, Maxim bet.
02:30
We've seen SI sportsbook.
02:32
We've seen all these Fox bet.
02:33
We've seen all these guys, you know, try and fail.
02:36
So I would expect probably at least one more next year, especially as a lot of them feel
02:40
pressure, especially, you know, from investors and the market continues to go towards Fandula
02:45
DraftKings at the top.
02:47
Yeah, I would agree on that.
02:49
OK, so a lot of scandals in the first half of the year, not as many in the second half
02:53
of the year.
02:54
Is that fair to say?
02:55
Yeah, that's definitely fair to say.
02:57
I think a lot of it, I don't know if it was timing.
02:59
It all came to a head in January through March.
03:01
You obviously had the Shogayetani interpreter.
03:03
You had John T Porter later than that.
03:06
But we've seen the industry recover and move on from it.
03:09
Hopefully no more scandals next year.
03:11
But you never really know.
03:12
Sometimes it's just a product of the legal industry working the way it's supposed to.
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