DKNG - Sports betting revenue in U.S. is forecast to top $10B this year

2023-03-29 15:52:11 ET

The U.S. sports betting industry is forecast to see a 45% jump in betting handle this year to $136.6B with new states in the mix. The forecast from research firm Insider Intelligence includes legal bets at retail sportsbooks, online sportsbook, and lottery parlay cards.

The firm also expects the total U.S. sports handle betting handle to exceed $200B in two years after standing at only $4.62B just five years ago.

As for the what the house keeps, total sports betting revenue is anticipated to climb 46.0% this year to surpass $10B for the first time. Double-digit revenue is expected to continue over the next two years as revenue approaches $20B. The average bettor is seen increasing the size of their annual betting action by 26.9% to an average of $4.4K this year. By 2025, the average amount wagered in a year by a bettor is forecast to exceed $6K.

Sector watch: DraftKings ( DKNG ) expects its first positive adjusted EBITDA year in FY24, while Caesars Entertainment ( CZR ) thinks it will see a positive profit in its digital gaming business by the end of FY23. See Seeking Alpha Quant Ratings across the casino sector.

Read details on the gaming win numbers from Nevada.

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