Sports betting industry just 'in the middle innings' of its explosive growth, experts say

(TND) — The sports betting industry has seen explosive growth in the five years since the Supreme Court cleared the way for any state to .

And experts say the industry is still primed for significant expansion.

say sports gambling in the U.S. has become a $10 billion industry with the potential to grow to $45 billion.

“We’re in the middle innings of the development of the market,” Noah Naparst, who evaluates sports betting companies for Goldman Sachs Asset Management, said in an article on the firm’s website.

, an expert on the sports betting industry who teaches at the , said Goldman Sachs’ expectations are low.

Ohio alone saw $1 billion bet in a single month after legalizing sports betting in January 2023, he said.

And Vinturella said projections are calling for $30 billion to $35 billion to be put down on this weekend’s Super Bowl.

There is, of course, a difference between the amount bet and the amount the companies keep, which Vinturella said is typically in the 6-8% range.

Vinturella said Thursday that sports betting is going “to expand quicker than I think anyone is projecting.”

Sports betting was offered in five states the first year it was allowed nationwide, he said.

Now, we’re up to 39 states allowing some form of sports betting.

Ohio doubled its tax rate to 20% on sports gambling after seeing how successful its launch was, Vinturella said.

“I think these states (who haven’t made it legal) are looking at it like, you know, we're missing out on a significant amount of revenue that can help us do more things in the state,” he said.

And Vinturella said the “big three” of California, Florida and Texas “haven't fallen yet.”

“They'll control the future of sports betting,” he said.

Both California and Florida must reconcile existing tribal gambling operations with any desire for legalized statewide sports betting.

Vinturella thinks Florida will come online with legal sports betting soon, Texas in 2026, and finally California.

“Once California and Texas and Florida become legal, you'll just surpass anything that's happening now,” he said.

FanDuel and DraftKings are the industry behemoths, responsible for about 85% of online sports betting in the country, Vinturella said.

And he said 90% or more of all sports betting in the U.S. is done online.

“The younger generation, you know, let's say 21 to 35, they're not interested in going into the casino,” Vinturella said.

The Super Bowl is the biggest betting weekend on the sports calendar, followed by the opening weekend of the NCAA men’s basketball tournament, he said.

Sports betting operators make about 70% of their revenue from football, both college and pro.

The Goldman Sachs researchers also think innovation can fuel industry growth.

“The future of sports betting is the convergence of media and sports and betting,” Naparst said in the article. “You’re watching a basketball game in your betting app, and a player is about to take a free throw. The odds that he or she makes it pop up on screen, and the app asks, ‘Do you want to do this bet or not?’ That’s where the industry is heading.”