A New Report By Bank Of America Says There Is No Stopping Sports Betting
A new report by Bank Of America says as sports betting becomes legal in more and more states, more bets will be placed. The year of 2019 brought in close to a $ billion dollars of sports betting revenue across the United States. Gaming experts say the number of revenue in the years to come can be anywhere from $4 billion to $20 billion and beyond. Shaun Kelley a research analyst for Bank Of America conducted a two year study on sports betting for the banking giant.
Kelley said, “we think the success, adoption and technology behind online and mobile sports can be a catalyst for wider iGaming penetration. A notable shift for an industry that has thus far not been widely impacted by the internet.” That statement was released by Kelley to Bank Of America’s commercial client base. Kelley also explained that sports betting and online gaming has been the hottest topic in the last decade with investors.
Sports Betting Provider DraftKings Became Public In December Of 2019
Giant sports betting provider Draftkings signed a multilevel deal to merge with Diamond Eagle Acquisition last year. That deal enabled DraftKings to be a publicly-traded company and forgoing the traditional IPO process. Last week the stock of casino company Penn National Gaming went up by 12% after news of the acquisition was made. Penn National had acquired 36% shares of Barstool Sports, a digital sports media company. The deal cost Penn National $163 million in cash.
The deal is supposed to officially close in the first quarter of 2020. Prior to the deal, Barstool had been believed to be valued at $450 million. Investors have their antennas up regarding sports betting, and more and more are positioning themselves to make moves. Sports betting revenues for 2018 were around $240 million, 2018 was not a full year of sports betting. The first full year of 2019 saw an almost 50% increase in sports betting revenue from the year before. Thomas Allen an analysis with Morgan Stanley said, ‘Investors are getting in on the sports betting book in very impressive numbers.
A Record Number Of Investors Into Sports Betting Are Expected In 2020
Allen said 2020 is going to be the year that we see investors putting their stake in sports betting in record numbers. Allen estimates that by the year 2025 sports betting revenue could top $25 billion dollars. Allen added, “those numbers make it impossible for serious investors to ignore.’ Allen also said that the predictions being made by gaming analysts are very conservative.
The truth of the matter is, that as more states come online, the numbers are expected to explode with astronomical figures. Allen said the predictions being made on the conservative side, due to the time it takes from legalization to implementation. However, Allen said as time goes on, the process will become smoother for states and thus speeding up the process. ‘’
Is sports betting LEGAL where you are?