Betting on sports is about to become one of the largest growing industries in the United States of America. The US Federal Government lifted its ban on online sports betting, which has brought on enthusiasm from sporting fans in the nation. There has also been scepticism since the ban was lifted in 2018 with multiple consulting firms compiling extensive collections of data to determine how much citizens of America will spend on sportsbetting by 2023. Activate, the consulting firm behind this data, said that Americans would spend $150 Billion a year by 2023 as legalization becomes widely known.
This hasn’t accounted for the numerous ways that online sportsbooks will appeal to Americans with new products. FanDuel, Barstool Sports and Fan Sports are all fighting to create different products that will enable the majority of bettors to play with their services. However, regulatory rulings on what these sportsbooks can do have limited the way advertisements can be marketed to players. Regardless, the Activate Firm anticipates that the industry will generate $19 Billion in net revenue through media rights and advertising. This will extend to sponsorships and data licensing of sports bettors. There will also be multiple unknown ways in which revenue will be generated for FanDuel and any other notable American sportsbook.
There are multiple hurdles that these sportsbooks must overcome before their goal of $19 Billion in industry profits becomes a reality. Below we have comprised those five hurdles and what’s required to overcome those problems.
- State Approval: Numerous states across America haven’t begun providing their legal sportsbetting services, even after the federal government lifted the ban. Before sportsbooks can accumulate mass profits, all states in America will need to support the new sportsbetting laws.
- Tech Upgrades: These sportsbooks need to account for continuous changes to technology with mobile phones and desktop computers. Refusal to upgrade systems will show potential players that their services aren’t reliable.
- Taxes: These sportsbooks need to convince the Federal Government that tax rates on sportsbetting must be low. This will be the only way to incentivize individuals to bet with the sportsbooks.
- New Standards: The American Federal Government will need to enforce new laws and regulations for sportsbooks, ensuring that responsible gambling standards are being maintained.
- Data Security: The final hurdle that sportsbooks need to overcome is data collecting, which needs to become more private and secure. The federal government needs to sanction data security to guarantee the safety of American Citizens.