In 2018, there was a major shift in how the world viewed sports gambling. The US Supreme Court overturned the controversial PASPA, which had prevented states from launching their own sports gambling markets since it was enacted in 1992. Since then, a number of states have sought the legalization of sports gambling and the list continues to grow almost on a weekly basis. This is increasing the competitiveness of the market as sportsbooks vie for a larger share of the action, and Nevada is no longer the go-to market it once was.
For what seemed like an eternity, Nevada had a virtual lock on sports gambling. However, Colorado, New Jersey, Pennsylvania and plenty of other states – more than 20 now – took away Nevada’s virtual monopoly. They are all seeing multimillion-dollar revenue streams being created through their legal sportsbooks, providing much-needed sources of cash as other wellsprings dry up. The latest to possibly join the growing list of legal states is Arizona, which just approved a sports gambling bill in the House of Representatives that now goes before the Senate.
As Nevada’s neighbor, Arizona can take a major chunk away from Nevada’s sports gambling business. As the Silver State is already reeling from a massive loss of revenue due to COVID-19, Arizona sports gamblers that once hopped across the border to place bets might soon be able to connect to a sportsbook from the comfort of their own home. With less casino gambling and sports wagering activity in Nevada, it will need to rapidly diversify its portfolio of attractions in order to stay relevant in the shifting gaming industry.
The Nevada Gaming Control Board just put its weight behind a massive acquisition that is going to change the outcome of the entire sports gambling market in the US. It believes that there’s no reason for Caesars Entertainment to be denied a chance to purchase William Hill US, which, if successful, would give Caesars an immediate influx of 120 sports gambling outlets in the US. Although Caesars was once a casino powerhouse in the US, it could soon become a sports gambling powerhouse, instead, threatening the domination currently held by DraftKings.
Some analysts have predicted that there will be at least 40 states with legal sports gambling markets by 2025. Given that the industry was worth around $920 million in 2019 and $1.57 billion last year, the amount of growth is going to be staggering. With forecasts of a total US handle of almost $6 billion in just two years, there doesn’t seem to be a limit on what is possible. What is certain, though, is that there is still a lot of room for growth and a lot of interest in becoming a part of the explosive sports gambling industry.
