Sports Betting Posts a Record-Setting Q3

The Gist:

• The sports betting industry had a massive 2022 Q3, posting $1.68 billion in revenue. This represents an 80.6% increase year over year.
• Seven new states have legalized betting since this time last year, most notably New York. However, even if you exclude those states, the industry is still up 33% over Q3 2021.
• This growth is happening despite the fact that sports betting remains illegal in California. The state rejected two separate propositions that would have legalized sports gambling in one form or another.

Tyler’s Thoughts:

Welcome to another edition of The Market Scale Sports Business Minute. I’m Tyler Kern. Today we’re talking about one of my favorite topics, and that is sports betting. Now, the sports betting industry had a record Q3 posting 1.68 billion in revenue in Q3. That is an 80.6% increase year over year, so massive, massive growth in the sports betting industry.

However, the industry is doing this despite America’s most populous state, California, still hasn’t legalized any form of sports betting, so there’s still more growth to go. In fact, if you look at the midterm elections, California roundly rejected two different ballot measures that would have legalized sports betting in some form or fashion in the state.

So Proposition 26 would’ve legalized sports betting on tribal lands and at race tracks and Prop 27 would’ve legalized mobile sports betting. Both of those were voted down in a massive way, meaning there’s still a lot of growth to go for sports betting in the United States, despite the fact we’re still seeing massive gains.

We’ll continue to follow which states are legalizing sports betting and in what Forms because that is where a lot of the growth still lies for the sports betting industry here in the United States. Stay tuned for more on that, but that is it for this episode of the Sports Business Minute.