ANALYSIS: WHO’S SPORTS BETTING AND HOW MUCH?

Gaming America takes a look at figures and projections from Morgan Stanley Research, with surveys surrounding sports betting and its effects on sports, media and their intersection.

After the overturning of PASPA in 2018, sports betting was legal in 21 US jurisdictions by the end of its first full year, 2019. According to a December 2019 American Gaming Association (AGA) press release, Michigan was the last state to legalize that year. Currently, 34+ states and Washington

DC have legalized sports betting, with four more states legal but not yet operational. Morgan Stanley estimates that by 2025 there will be 20-30 million online sports bettors in the country, with FanDuel and DraftKings’ players representing over 10 million of that total. FanDuel's parent company, Flutter, reported in its Q1 results that the sportsbook had an average monthly playerbase of 12.3 million players in that quarter alone, up 30% year-on-year. The below graph assesses annual sports betting revenue from 2018 until 2022, also projecting 2023, 2024 and 2025.

GROSS HISTORICAL & FORECASTED US SPORTS BETTING REVENUES

SPORTS TYPICALLY BET ON (AMONG SPORTS BETTORS)

Sports Bettors

Online Sports Bettors

A Kagan sports survey conducted in Q3 of 2022 showed that those who self-iden�fied as sports be�ors were more engaged with sports media, including paying for a sport subscription service, and watching live spor�ng events at least once a week. With the highest percentage of sports be�ors (96%) watching sports from the comfort of their own home, it’s no wonder that mobile sports be�ng has taken off, and has added to the home-watching experience. Viewing sports from a smartphone or tablet also makes it convenient for mobile be�ors, as a device is already in the hands of 86% of those surveyed.

Sports betting is attracting younger people and the breakdown between demographics seems to mirror that of media companies. According to a recent statement from Betr, the sportsbook primarily targets the 21-34-year-old male demographic, which corroborates Morgan Stanley research suggesting that the average age of sports bettors, both online and in retail locations, was 21-34. The 45-64-year-old age demographic was still the largest for those who gambled in a casino, according to the same research. The sport bettors are taking the most chances on at any age, however, is football. The NFL holds around 40% of the market share. Sports with high viewership for their televised events (such as the NFL and the Super Bowl), and sports with many or frequent games (such as the NBA and MLB), are trending toward larger shares of the overall market.

Source: Alphawise, Morgan Stanley Research

Kagan Sports Viewership Survey

ALL RESPONSES

Sports

BETTORS