Sports Betting ETFs, Stocks to Surge on More Legalization

Sports betting has been growing rapidly across the globe in recent years powered by legalization of gambling in the United States by the Supreme Court in 2018. According to the American Gaming Association, about 19 states and Washington, D.C. have legalized sports betting in the United States while 25 states allow casino gambling (read: Why Sports Betting Stocks & ETF Are Booming).

Legalization in More States

The election has paved the way for three more states to legalize the sports gambling and three others to either approve or expand casino gambling. Maryland, South Dakota and Louisiana approved sports betting. Meanwhile, Virginia approved casino gambling in four locations while Nebraska authorized adding casino games at its horse racing tracks. Colorado expanded the number and type of casino games it can offer, apart from eliminating some wagering limits.

The new additions bring the total to 26 states (plus Washington, D.C.) that have either launched legal sports betting or passed the legislation and are waiting to launch. The rapid expansion of legal sports betting would continue to drive this industry.

The U.S. sports betting market is expected to be worth about $1.5 billion next year and $2.75 billion by 2023, according to a study by GamblingCompliance. H2 Gambling Capital estimates it to be worth $81 billion by 2030. According to the American Gaming Association, about $150 billion is wagered illegally on sports through the likes of bookies and offshore sites every year. Data Bridge Market Research projects global sports betting market to witness a CAGR of 9.99% in the forecast period of 2020 to 2027.

Online Betting: A Hot Spot

Most of the growth will be driven by online sports betting, which comprises remote gaming activities by means of the Internet using desktop and mobile devices. An upsurge in smartphone adoption and improving Internet infrastructure across the world will fuel strong growth in the gambling market. Various new technologies like Virtual Reality, 3D Animation, Live Table Games, Blockchain, IoT and VR Headsets are driving the outlook for the gaming market over the coming years (read: ETFs to Soar on Resurgence in Coronavirus Cases).

Per a research report by Global Market Insights Inc., the online gambling market would likely exceed $160 billion by the end of 2026. Grandview Research stated that the global online gambling market size was valued at $53.7 billion in 2019 and is expected to witness a CAGR of 11.5% from 2020 to 2027. Per the data by Statista, the global online gambling market is expected to grow to more than $92.9 billion in 2023 from the current $59 billion. The sports betting market revenue is projected to exceed $134.5 billion by 2027, according to data provided by Transparency Market Research. projects the global online gambling market to grow from $58.9 billion in 2019 to $66.7 billion in…

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