The state of New York is set to overtake Nevada as the largest sports betting market in the U.S., according to the new GamblingCompliance projections.
A five-year projection of the U.S. sports betting market shows that New York will generate $700 million in annual sports wagering revenues, smashing Nevada’s $248 million record.
Nevada’s annual sports wagering revenue is also likely to be overtaken by the states of New Jersey, Massachusetts and Pennsylvania by 2023, according to the gambling market analyst, which forecast New Jersey and Pennsylvania’s revenues to eaach reach $300 million. The report touted the U.S. Northeast region to become “the epicenter of sports betting expansion in the years.”
GamblingCompliance noted that it might take time for majority of the states to enter the sports betting market. Five years from now, the report said that only seven states may join Nevada in the sports betting business.
The problem lies in shaping the sports betting policies of each state, according to the report. It cited California, Florida, and Texas as having the potential to become lucrative sports betting markets despite “local legal and lobbying obstacles.”
“A state-by-state expansion of sports betting is going to be complicated, with various stakeholders including gaming and fantasy-sports operators, major sports leagues, Indian tribes and others likely to lobby for divergent policies as they bid to shape legislation and regulations in their favor,” GamblingCompliance Managing Director (Americas) and analyst James Kilsby said in a statement.
Nevertheless, the report predicts the U.S. will eventually surpass UK and China as one of the largest sports betting markets in the world. By 2023, GamblingCompliance said the U.S. legal sports wagering market will be worth between $3.1 billion and $5.2 billion in annual revenue.
The latest sports betting market projection was issued after New Jersey and Delaware approved sports betting in their respective jurisdictions in the wake of the Supreme Court’s PASPA repeal. The states of Mississippi, Pennsylvania, Rhode Island, West Virginia and potentially New York are all set to follow before the close of the year.