U.S. eSports and Sports Betting Market All Set to Enjoy a Meteoric Rise—Projected to Reach USD 17,715.0 Million by 2027
Published | 07 July 2021
A
study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the U.S.
eSports and Sports Betting market was worth USD 1,915.6 million in 2020 and is further projected to reach USD
17,715.0 million by 2027 at a CAGR of 27.0%
during the forecast period (2021-2027). Several factors are driving the U.S.
eSports and Sports Betting market, including the record viewership of sports
amid the pandemic across the US, an increase in live streaming of games and
eSports, temporary closure of casinos, and expanding interest in betting across
the US. These factors are expected to drive the growth of the U.S. eSports and
Sports Betting market during the forecast period.
Record Viewership of Sports amid the Pandemic across the
U.S. favoring the Growth
of U.S. eSports and Sports Betting Market
As a result of the coronavirus-induced pandemic, sports fans
had difficulty watching their favorite events in the stadiums, which in turn affected
the U.S. eSports and sports betting market in the United States. However, it
has helped in the viewership of sports across the television and other online
platforms which have even registered record levels of viewership. According to
Athletic Panda Sports Editors Report, the NFL (National Football League) draft
that took place in the year 2020 amid COVID-19 was viewed by a record 15.6 million
people across various platforms.
When NASCAR became the first sport to reappear on TV after
the lockdown in mid-May, 2020, the viewership increased by almost 38% compared
to the last event and reached 6.32 million. A broadcast of the final day of the
PGA Tour’s Charles Schwab Open in Texas towards the end of June 2020, garnered 3.091 million
viewers, the tournament's highest viewership in 16 years. The viewership was up
more than 50% from the previous year. eSports also registered a
viewership increase of almost 70% in the U.S. in 2020. A rise in viewership of
eSports, along with the legalization of eSports and sports betting, has
resulted in more customers joining the betting scene than ever before, causing
the U.S. eSports and Sports betting market to flourish.
The Rising interest in betting across the U.S. is expected to propel the growth of the U.S.
eSports and Sports Betting market
According to the American Gaming Association, in 2020, an
estimated 33.1 million adults in the US, which amounts to approximately 10% of
the population, had planned to place a bet on NFL games. Of these people, 34%
were expected to make a bet over legal and illegal online platforms, an
increase of 28% from 2019. Meanwhile, 20% of them stated they had wagered at
legal sportsbooks, an 18% increase over 2019. Even though people have access to
a much safer and regulated legal setup for sports betting, 18% of the bettors
had planned to make bets with the help of a bookie, showcasing a jump of 12%
from 2019. Statistics indicate a rising trend in the interest for betting
across the U.S. Moreover, with the government easing regulations on sports and
eSports betting platforms, the trend is set to attract even more customers,
which will drive demand for eSports and sports betting during the forecast
period.
Increasing Skepticism around Illegal Bookies may Hinder the
Growth of the U.S. eSports and Sports Betting market
Until a few years ago, the U.S. eSports and Sports betting
market was dominated by illegal betting. With the advent of the internet,
illegal betting and bookies have taken advantage of lax or non-existent
gambling laws in many countries like Costa Rica, Panama and Latvia, by setting
up online sportsbooks for American customers. It's illegal for sportsbooks to
operate in the United States as they prey on unwary Americans despite claims of
regulations and licensing in their home countries. Despite the Supreme Court's
decision to legalize sports betting in nearly half of US states, these
operators are still operating and taking advantage of the unsuspecting public,
which has been a bottleneck for the market. These factors are expected to
impede the growth of the U.S. eSports and Sports betting market during the
forecast period.
The sports
betting segment accounted for the largest share in the U.S. eSports and Sports
Betting market in 2020
The U.S. eSports and Sports betting market is segmented into
Sports betting and eSports betting, with the sports betting segment holding the
majority of the market share in 2020. A sports bet is a wager placed on the
outcome of an event that takes place within a specific sport. Bettors place
their bets on specific sports events via mobile apps or sportsbooks and attempt
to predict the possibility that an event will take place. In 2016, Leicester
City won the English Premier League in England with odds of 5,000 to 1. With
such odds, a wager of USD 5 would have returned USD 25,000 to the winning
bettor.
In the U.S., people prefer to bet on football, basketball,
baseball, hockey, horse racing, tennis, soccer, and many other sports. Moreover,
some states allow wagering on university sports, while others prohibit it. With
Tokyo Olympics, Premier League 2021-2022, Champions League 2021-2022, t-20
cricket world cup 2021, Football World Cup 20222, and many other major sporting
events approaching, the sports segment in U.S. eSports and Sports Betting
market is expected to register significant growth in upcoming years.
U.S. eSports and
Sports Betting Market: Regional Insights
The U.S. eSports and Sports Betting market is grouped into the following states—New Jersey, Nevada, Colorado,
Tennessee, West Virginia, Pennsylvania,
Indiana, Illinois, Mississippi, Iowa, and others for sports betting. For
eSports betting, the market is categorized into the following states—New
Jersey, Nevada, Colorado, Tennessee, West Virginia, Arizona, Wyoming, and
others. New Jersey
dominated the U.S. eSports and Sports Betting market in 2020 and accounted for
the largest market share. New
Jersey sports betting alone exceeded USD 4.5 billion New Jersey is
quickly moving to widely legalize eSports betting with Bill A637. This bill
allows New Jersey sportsbooks to offer eSports wagering on most college and
professional events and tournaments. Aside from that, the Division of Gaming
Enforcement in the state of New Jersey has granted special permissions to
operators of eSports in the state, such as iNASCAR during the 2020 COVID-19
Pandemic.
COVID-19
Impact on U.S. eSports and Sports Betting Market
The majority of the industries have been negatively
impacted by COVID-19. While some have started to recover, others are still
trying to figure a way out. COVID-19 wreaked havoc on the eSports and sports
betting industries, with all sporting and eSporting events throughout the world
being canceled or halted. It started with the suspension of the soccer league
(Seria A) in Italy, followed by the suspension of all major soccer leagues
(Bundesliga in Germany, Ligue 1 in France, La Liga in Spain, English Premier
League in England, and others) and other sports. This started a domino effect
and consequently, other countries also ended up suspending all sporting
activities to control the rampaging pandemic. The lockdown restrictions also
resulted in the closure of casinos and other offline sports betting platforms.
However, as governments began to relax their
lockdown restrictions and sports leagues were permitted to resume under
stringent conditions, the number of viewers and bettors increased dramatically.
To take advantage of the scenario, many states in the United States authorized
online betting, resulting in some of the largest eSports and Sports betting
revenues in history. As things return to normal slowly, the surge in the growth
of the U.S. eSports and Sports betting market is expected to slow down a bit,
however, it is still expected to maintain a high growth rate with several
states looking to legalize eSports and Sports betting. This is expected to
attract more sports betters and propel the growth of the U.S. eSports and
Sports Betting market in upcoming years.
The
Leading Players operating in the U.S. eSports and Sports Betting market are 888 Holdings, Entain PLC, William Hill, Kindred
Group PLC, Draftkings Inc., Flutter Entertainment PLC, Fubotv Inc., Elys Game
Technology Corp., Score Media Ventures Inc, Real Luck Group Ltd., and others. The key market players are entering into
collaborations, partnerships and engaging in mergers & acquisitions to
capture a more significant market share. Furthermore, the market participants
are focused on improving their product quality to attain a competitive edge
over other players.
Recent
Developments
On March
22, 2021, BetMGM, a
brand of Entain announced the launch of its BetMGM Poker in Michigan. Michigan
would be the 2nd state in the U.S. to introduce BetMGM Poker, the
company’s primary online poker offering powered by the partypoker US network.
On
February 03, 2021, William Hill US collaborated with Caesars
Entertainment to launch its mobile and online sportsbook in Virginia. The app,
which is based on William Hill's proprietary platform, provides a wide range of
markets and betting options, including live InPlay wagering. The app has a
simple and secure registration process as well as a variety of deposit and
withdrawal methods.
The in-depth
analysis of the report provides information about growth potential, upcoming
trends, and statistics of the U.S. eSports and Sports Betting market. It also
highlights the factors driving forecasts of total market size. The report
promises to provide recent technology trends, along with industry insights to
help decision-makers make sound strategic decisions. Furthermore, the report
also analyzes the growth drivers, challenges, and competitive dynamics of the
market.
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