NFL and college football betting is forecast to reach $20 billion in 2021
Bettors are desperate to get their hands on football, with one research firm predicting that U.S. regulated betting operators will attract more than $20 billion in NFL and college football bets this year.
The forecast comes from PlayUSA, which says the $20 billion amount could generate $1.5 billion in revenue for carriers. If the $20 billion comes to fruition, it would be nearly three times the $7.5 billion projected for football in 2020.
The 2020 numbers may be lower because some colleges are not playing all games due to the coronavirus pandemic, reducing the number of games available for betting.
Last year's expansion of the list of states with live and legal sports betting is one reason why 2021 is expected to see a significant increase in football games.
The U.S. market has grown significantly since the start of the 2020 football season,” said PlayUSA analyst Dustin Goucker.
Currently, 22 states and Washington, D.C., allow legal sports betting. But much to the delight of betters and operators, that number will soon rise.
Unreasonable $20 Billion Football Deal
While the $20 billion amount may seem ambitious compared to 2020 estimates, it is not unreasonable given a number of factors.
First, football is the most popular sport in the United States, and the NFL has increased the number of regular season games from 16 to 17 this year. Additionally, NCAA teams are expected to play a full schedule. Translation: There will be more football for bettors to bet on.
Second, some of the states that just added live and legal parties this year have large populations and are home to college and pro football teams. As Gook pointed out, Michigan and Virginia are two prime examples.
Speaking of new states, Arizona has been confirmed to begin regulated sports betting on August 9, while Connecticut, Florida, Louisiana, Maryland, Nebraska, New York, South Dakota Washington State, Wisconsin and Wyoming will likely begin operations at some point before the end of the 2021 football season.
Good news for operators
How $20 billion or more will impact operators remains to be seen. But Flutter Entertainment's (OTC:PDYPY) FanDuel unit, MGM Resorts' BetMGM and Entain Plc (OTC:GMVHY) and DraftKings (NASDAQ:DKNG) are the three largest online sportsbooks in the United States.
Of the three, FanDuel is the leader, with around 45% share in the US. However, it's a competitive industry with many other wealthy players, including Caesars Entertainment Inc. (NASDAQ: CZR ) and Penn National Gaming Inc. (NASDAQ: PENN ).
The start of the football season may lead to increased advertising and marketing spend by operators as they struggle to attract and retain customers. Wall Street will be watching the payout closely as some investors want to see profits from companies like DraftKings.
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Source: www.casino.org
