Goldman Sachs Report Sports Betting Could Reach $39 Billion by 2033

Sports Betting undoubtedly has room to grow. Every year several states are legalizing online sports gambling, and in the states that it is legal, the sportsbooks are consistently breaking revenue and wagering records. However, how far can sports gambling go in the United States is a massive question for many in the industry.

Goldman Sachs Comments

According to Casino.org, Goldman Sachs recently released a note to clients in which it stated that it believes Sports Gaming will grow from the current $900 million value in the United States to $39 billion in 2033. This is a monstrous growth projection, even on a yearly basis.

Goldman Sachs points to the new friendlier legislation that is being passed in the United States, as well as the adoption and normality that sports betting is becoming as the major driving forces for this forecast.

Which States Can Grow Sports Betting

One thing that could give a massive boost to the sports betting revenue is big states legalizing. There is currently legislation in place in New York to legalize mobile sports wagering. While sports betting is legal at casinos, this would be the first massive state to allow mobile sports betting.

However, there are other big-ticket states like Florida, Texas, and California that could possibly change the swing of sports betting. Between these three states, there are almost 90 million people. Each one of these states also offers a lucrative sports betting environment as there are several popular professionals and collegiate sports teams in each one.

Projections from experts have ranged between $1-$4 billion in possible monthly handles for each one of these massive states. This kind of betting and revenue would be significant in the market. While there is no guarantee of success in these states, it is easy to see why sports betting would benefit greatly from these populous states legalizing.

Biggest States Right Now

Currently, the largest states for sports betting are New Jersey and Pennsylvania. Pennsylvania brought in around $189 million in revenue in 2020. Meanwhile, New Jersey reached about $358 million in sports betting revenue for 2020. Keep in mind that the pandemic significantly hampered the ability to wager on sports by closing down retail sportsbooks, reducing disposable income, and canceling sporting events.

These two states brought in a majority of that revenue through mobile apps, which simply have higher margins due to lower fixed costs. Mobile apps also have the ability to reach more consumers since there is no transportation needed on the bettor’s part.

It is interesting to note that neither of these states even come close to the population of larger potential states like California, Texas, Florida. Not to mention the sports teams and economy that each one of those states has. When looking at the current trend and the sheer amount of cash being thrown into sports gambling, you can start to see why Goldman Sachs may be so high on sports wagering.

However, a lot of the success hinges on what the big states do with their legislation. Some states have much easier paths to legalization for sports gambling than others. It is possible that the number of states that legalize plateau at some point if roadblocks become too much in certain states.