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Study: US sportsbooks post record US$7.5bn revenue in 2022

Legal sportsbooks handled US$93.2bn in bets last year, an annual increase of 63%.

17 February 2023 Ed Dixon

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  • Revenue up 75% YoY
  • Growth fuelled by operations in Kansas, Louisiana, Maryland and New York
  • Sports betting hit single quarter high in Q4 2022

Sportsbook revenue in the US hit a record US$7.5 billion in 2022, up 75 per cent from the 2021 total of US$4.29 billion, according to the American Gaming Association (AGA).

The AGA’s Commercial Gaming Revenue Tracker also found that legal sportsbooks handled US$93.2 billion in bets last year, marking a 63 per cent year-over-year (YoY) increase.

The growth in sports betting was fuelled in part by the state of Kansas, which operationalised both retail and mobile sports wagering, as well as the launch of mobile sports betting in Louisiana, Maryland and New York.

Total US commercial gambling revenue, which includes casino gaming and iGaming as well as sports betting, reached an annual record of US$60.4 billion in 2022, beating the 2021 high of US$53 billion.

This included an all-time record quarter of nearly US$15.9 billion in Q4 2022. The AGA added that sports betting and iGaming both marked single quarter highs, while traditional gaming grew 1.7 per cent YoY.

Last year, 34 states and the District of Columbia featured operational commercial gaming markets, compared to 33 in 2021.

For 2022, the Las Vegas Strip and Atlantic City retained their top commercial market positions. The Baltimore-Washington DC market retained third spot, besting Chicagoland in fourth and the Mississippi Gulf Coast in fifth.

“Our industry significantly outpaced expectations in 2022,” said AGA president and chief executive Bill Miller.

“Simply put, American adults are choosing casino gaming for entertainment in record numbers, benefitting communities, and taking market share from the predatory, illegal marketplace.

“Even as we navigate macroeconomic headwinds, I am optimistic about the year ahead.”

The AGA study comes as US betting brand DraftKings announced revenue of US$855 million for Q4 2022, up 81 per cent YoY. It posted a loss of US$232 million, down from US$369 million in Q4 2021.

Revenue for the full fiscal year was US$2.24 billion compared to US$1.29 billion for 2021. The company’s net loss for 2022 was US$1.38 billion, compared to US$1.52 billion the year prior. 

DraftKings added that it was raising its fiscal year 2023 revenue guidance to a range of US$2.85 billion to US$3.05 billion. The company also now expects losses for the year to be between US$350 million and US$450 million.

SportsPro says…

It was a record-breaking year for US sportsbooks and 2023 is on course to be another milestone period for the industry.

Last weekend’s Super Bowl highlighted America’s appetite for sports betting, with FanDuel alone accepting 50,000 bets per minute at its peak and averaging two million active users on its platform during the game.

Flutter-owned FanDuel is also mulling a listing on the US stock exchange, a move which could further lift the wider US sports betting industry. The brand is currently the market leader in America, but is not the only firm looking for a piece of the country’s sportsbook pie – Flutter reckons the total addressable US betting market will be worth more than US$40 billion by 2030.

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