Sports Betting ETF Soars On Mega-Event Fervor

Sports betting has been gaining immense popularity globally following the legalization of gambling in the United States by the Supreme Court in 2018. About 22 states have legalized sports betting in the United States and more working toward it.

The U.S. sports betting market is expected to be worth about $1.5 billion next year and $2.75 billion by 2023, according to a study by GamblingCompliance. H2 Gambling Capital estimates it to be worth $81 billion by 2030. According to the American Gaming Association, about $150 billion is wagered illegally on sports through the likes of bookies and offshore sites every year.

Now, a mega sports event in the United States has set the stage for an online betting boom in the weeks ahead. This is because the National Hockey League and National Basketball Association playoffs have been pushed to September due to the pandemic. This is the first time in the history of America that these two sports along with the U.S. Open tennis finals will overlap with week one of the National Football League (NFL) season.

The professional basketball and hockey playoffs simultaneously will be a boon for sportsbooks. Notably, the NFL’s 2020 Kickoff game on Sep 10 between Kansas City Chiefs and Houston Texans drew 19.3 million viewers. Though it is down 12% from last year, the game was easily the most-watched sporting event since the pandemic started in March.

FanDuel is expecting one of the biggest betting weekends of the year. Total “Thursday Night Football” gambling increased about 300% year over year as the gaming company is now legal and operational in several states for the first time, including Colorado and Illinois. DraftKings (DKNG - Free Report), which has dominance in New Jersey’s betting market with FanDuel, saw “record engagement across its sportsbook and daily fantasy products” on Sep 10 for NFL’s opening Kansas City Chiefs-Houston Texans game. Early this week, DraftKings became the exclusive provider of daily fantasy sports and a co-exclusive partner for gambling link-outs from ESPN through an agreement.

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