The Deputy President for Sportradar US has predicted a chaotic post-PASPA period, as the sports betting market prepares for an estimated $190 billion in annual activity to come “out of the shadows”.
Dr. Laila Mintas stressed that the benefits of legal sports betting in the US far outweigh “misperceived fears and unfounded concerns”, but acknowledged that because every state’s approach to regulation will be different, it will be a complex marketplace with the need for clear strategic counsel.
She also believes that this approach to regulation will dictate the emergence of the market, as bookmakers weigh up the costs involved and how attractive it is as a safe and secure avenue for legal sports betting, including how quickly black-market bettors will switch to regulated offers.
“The actual, factually proven benefits to legalized, regulated betting on sports far outweigh the misperceived fears and unfounded concerns many have on this topic,” said Mintas.
“In addition to the obvious benefit, which is taking a significant amount of this activity, estimated by some to be in the range of $190 billion annually, out of the shadows and into the light where it can be administered and regulated appropriately, there is also the obvious benefits of tax revenue, job creation, consumer protection and broader overall economic impact to consider.”
In her final US predictions, Mintas thinks it’s likely that big media companies will enter the marketplace, either by becoming bookmakers or adding turnkey solutions to their current offerings, as they have the existing customer base and access to those consumers’ wallets.
The money spent by online bookies on marketing, said to be on average over 25% of total revenues, is set to be the next big driver of growth in sports sponsorship, but it remains to be seen how the leagues will supplement their existing business with fantasy sports organisations.
Sportradar CEO Carsten Koerl concluded: “In the aftermath of this landmark decision, and considering the many ways this seismic shift will impact the landscape, it is critical to create a framework that enables U.S. sports fans to engage in the sports and competitions they follow and love, through a safe and secure wagering infrastructure that balances the priorities and needs of all stakeholders.”