2024 Record Highs in Sports Betting: An Unanticipated Surge

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00:00A record-breaking year in sports betting, despite the fact that very few states went

00:08online, it didn't stop the people who are out there from betting quite a bit, did it?

00:15No, to your point, Craig, usually when we've talked in the past about new records being

00:20broken and more money bet than ever before every year, it's kind of a no-brainer.

00:25You turn a state like New York on, of course you're going to have, you have more states

00:29now than you did then, it's going to be up.

00:31But this year we only really had North Carolina, yet total betting is expected to exceed last

00:36year by about 20%, which is just a huge jump considering we didn't really have many new

00:42states.

00:43We're expecting about $150 billion bet total this year.

00:48And a lot of that is because of operators just frankly making more money and pushing

00:53the higher margin bets.

00:54We talk about it all the time with parlays and the same game parlays, at LSR our projections

00:59have that most operators are going to finish with an average of 9.5% hold, which historically

01:06is record-breaking.

01:09Nevada has held about 6% to 7% ever since it legalized sports betting.

01:13So you see operators are making more money and getting people to bet more frequently,

01:18getting people to reinvest their bets as well, which is really driving up this hold.

01:23So you even have a state like Nevada where online sports betting isn't so big because

01:29of the presence of casinos and because the laws are written in a way that makes it hard

01:34to register and they want people betting in person.

01:37But this is going to be the first year Nevada finishes outside of the top five in total

01:41dollars bet since the 1940s when it first legalized gambling.

01:45So used to obviously talk about Nevada as the king of sports betting, but it's not even

01:50in the top five anymore.

01:51You have states like New York making a billion dollars in taxes in just one year, which is

01:57much more than lawmakers really could ever have conceived when this industry first became

02:02legal.

02:03You know, we've talked a lot about sportsbooks raising their expectations for the total addressable

02:07market in the next couple of years.

02:09It seems like this industry is just growing at a much faster pace than we ever imagined.

02:15And with that, I'd also expect some other players to get squeezed out.

02:18I think if you took the over on over 0.5 sportsbooks exiting the space every year,

02:24you'd be a pretty rich, a pretty rich person.

02:27And we saw points bet drop out.

02:28We saw, you know, Maxim bet.

02:30We've seen SI sportsbook.

02:32We've seen all these Fox bet.

02:33We've seen all these guys, you know, try and fail.

02:36So I would expect probably at least one more next year, especially as a lot of them feel

02:40pressure, especially, you know, from investors and the market continues to go towards Fandula

02:45DraftKings at the top.

02:47Yeah, I would agree on that.

02:49OK, so a lot of scandals in the first half of the year, not as many in the second half

02:53of the year.

02:54Is that fair to say?

02:55Yeah, that's definitely fair to say.

02:57I think a lot of it, I don't know if it was timing.

02:59It all came to a head in January through March.

03:01You obviously had the Shogayetani interpreter.

03:03You had John T Porter later than that.

03:06But we've seen the industry recover and move on from it.

03:09Hopefully no more scandals next year.

03:11But you never really know.

03:12Sometimes it's just a product of the legal industry working the way it's supposed to.

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