A new report conducted by management consulting company Activate has projected that the value of the sports betting market in the United States could go up as high as $149 billion in value by the year 2023.
The study, which was done by a firm that specializes in technology, media, and sports businesses, concluded that the US would be witnessing massive growth of around $13 billion each year in this particular industry in the next few years.
The yearly report indicated that when the market gets access to most states in a legal manner, more institutional investors could possibly get involved. There would also be more complex data sets and artificial intelligence used by firms to try and get an advantage over their competitors.
Esports is also prepared to play a substantial role in the development of the sector in the years to come. The report adds that esports could potentially rival traditional sports in the not too distant future when it comes to revenues and audience statistics, with the global esports sector to be worth about $7 billion by 2023.
Michael J. Wolf, Activate’s CEO, and co-founder said the company looked back at former predictions to see how it helped mold existing trends, such as in gaming, betting, and artificial intelligence.
The company also believes that in time, sportsbooks would offer many new kinds of markets that would go “beyond the outcome of a game”. The report also projects that sports betting would have an identical structure to financial trading markets.
At the moment, there are 14 states that have open legal sportsbooks. Five states have passed a sports betting legalization bill and are in the process of rolling out its sports betting offering.
This means that almost one in three adults in the US would soon be in a state where they could legally place a sports bet. Over 90 million Americans are either sports bettors or are likely to place bets in the future.
The Activate report also stresses those key areas that would allow the market to eventually reach its full potential. These include having federal regulation that allows interstate mobile gaming, network performance, reliability of live betting, and having sufficiently low taxes.