Commercial sports betting in the United States hit an all-time high in 2021, as the expansion of legal wagering across the country combined with strong activity in already mature markets to shatter previous records.
The American Gaming Association reported Tuesday that wagering with commercial sportsbooks last year was a record $57.22 billion, up 164.8% from 2020.
Bookmakers also generated a record amount of revenue from that handle. Commercial sports betting receipts climbed to $4.29 billion in 2021, an increase of 177.1% over 2020.
According to the AGA, an industry group, the boom in 2021 was due in part to the legalization and launch of sports betting in states like Arizona and Connecticut. Those new markets joined existing ones that continue to see strong wagering volume, such as New Jersey.
“Much of the increase in sports betting activity was due to the market launch in seven new commercial markets, as well as four tribal-only sports betting states,” the AGA said. “Continued market expansion across the U.S. also led to record annual wagering in 17 of 18 existing markets, including a steep surge in Michigan following the addition of legal, mobile wagering options.”
???????? NEW: 2021 set a new record as the highest-grossing year ever for the U.S. commercial gaming industry, reaching $53B in revenue.
— American Gaming Association (@AmericanGaming) February 15, 2022
The total shatters 2019’s previous industry record of $43.65B by more than 21 percent.
Read the release ?? https://t.co/a6SYTTHqyl pic.twitter.com/E4w2weKg8E
The expansion of sports betting in the U.S. helped drive what was the highest-grossing year yet for the country’s overall commercial gaming industry, which notched $53 billion in total revenue in 2021, the AGA said. That topped the previous record of $43.65 billion in 2019, before the effects of the COVID-19 pandemic were felt.
Tuesday's figures do not include the handle and revenue realized by Native American tribes with casinos and sports-betting operations either. Those businesses likely had a strong year as well.
“Tribal leaders have similarly shared with me that 2021 was their best year on record, and suppliers’ new technologies are driving impressive sales,” AGA President and CEO Bill Miller said in a speech during a webinar on Tuesday.
There may be even higher highs to come for U.S. casinos and sportsbooks. Business and international travel are still being affected by the pandemic, which has also weighed on the operations of brick-and-mortar gaming facilities.
Some of the gaming industry's additional growth is expected to come from sports betting, such as the recent launch of online wagering in Louisiana and New York.
“But that's just the beginning,” Miller said. “Sports betting in Nebraska and Ohio will come online and Maryland's mobile launch is in the works. Seven new states are considering sports betting legislation this year, and four states are considering iGaming.”
Purposeful promos
Yet the growth in sports betting has been accompanied by huge marketing expenditures and increased concerns about problem gambling.
Miller took aim at both those themes in his speech, saying the gaming industry is making “significant investments” in problem-gambling services and independent scientific research.
“You only have to look to the U.K., Spain, or Italy to see what happens when we don't make those investments,” the AGA head said, referencing the various regulatory measures taken in Europe.
On advertising, Miller said sports betting-related ads only really made up 1% of the total last year in the U.S. While ad spending can spike around big events like the Super Bowl, Miller said marketing serves to draw consumers away from illegal sportsbooks.
“Just look at New York or Louisiana,” Miller said. “Does anybody reasonably think that millions of people just decided to try out sports betting for the first time last month? Of course not. Americans have been betting on sports as long as there have been sports to bet on; they just haven't had the legal opportunity to do it before.”
