iGaming Weekly Recap (November 18 – 24): U.S. Market Powering Forward
This past week showcased the incredible potential of U.S. gambling markets. States like Massachusetts saw higher betting handle in October, but bigger payouts to players meant operators had to settle for lower revenues. The industry’s strength was also highlighted in the latest AGA report, which revealed record-breaking growth, fueled by the launch of new markets. Will we see more states stepping up to regulate new markets soon? Conversations last week, especially around Texas and Alabama, suggest it’s a real possibility. Catch all the details in our Weekly Recap!
The Eilers & Krejcik study highlights the potential to generate $360 million in tax revenue and create 8,000 jobs through the legalization of sports betting in Texas. Despite previous legislative setbacks, pressure continues to mount from sports team owners and neighboring states that have already legalized sports betting. The next opportunity to address legislative changes will arise in 2025.
The American gambling industry achieved a record-breaking profit in the third quarter of 2024, reaching $17.7 billion in revenue. This growth is primarily driven by sports betting and iGaming, despite a decline in revenues from traditional brick-and-mortar casinos. The sector is now in its fourth consecutive year of record-breaking performance, contributing significantly to state and local budgets. This market expansion is a direct result of the legalization of online sports betting in several states.
October 2024 saw a decline in sports betting revenue in Massachusetts, despite an increase in overall handle. While the total amount wagered rose, higher payouts to players resulted in lower profits for operators. DraftKings maintained its position as the market leader, followed by FanDuel and BetMGM. Smaller companies like Fanatics and ESPN BET continue to compete for smaller shares of the market. Overall, October’s results reflect a broader trend observed across sports betting markets last month.
Following the unsuccessful attempt to pass comprehensive gambling legislation last year, discussions in Alabama continue about revisiting the issue of legalization in 2025. A key role in this process is played by the Poarch Band of Creek Indians, who are investing in the gambling industry and actively engaging lobbyists. However, disagreements between legislative chambers and the lack of public consultations present significant challenges. Illegal gambling remains a major issue in the state, and legalization aims to address this by introducing regulation and bringing benefits to Alabama. The future of the proposed legislation, however, remains uncertain.
The investigation conducted by the Attorney General’s Office of the District of Columbia into the contract awarded to Intralot in 2019 for managing sports betting and lottery operations is gaining momentum. The contract, valued at $215 million, has faced sharp criticism due to the failures of GambetDC. As a result, the District of Columbia held a new bidding process, awarding the contract to FanDuel. The investigation focuses on potential irregularities in the awarding of the Intralot contract, particularly concerning the role of subcontractor Veterans Services Corp. Ultimately, the full opening of the sports betting market in 2024 led to increased revenue for the District of Columbia. In October, betting handle rose by 10% month-over-month to $65 million.
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Make sure to follow our weekly roundups to stay up to date on the trends, challenges and stories shaping the future of iGaming world. The next few weeks will be big – don’t miss out!
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