When covering the US sports betting industry, you should learn to expect the unexpected. Thus, upsets will happen, and leads will be unsafe. Also, nothing is permanent. Just ask Twitter.
A year ago, few of us would have gambled on the NFL suspending an active, once-Pro Bowl wideout for a year for betting on NFL games. In addition, an even longer shot paid off recently when the Ohio Casino Control Commission fined Barstool Sportsbook $250,000. It was for an infraction the sportsbook made before it launched in the state. So we won’t call the exit of Fubo Sportsbook from the market a shocker. It was one of many events in the industry experts had predicted along with other mergers and market shifts.
That brings us to the present. It is a time for introspection and making somewhat educated but probably outrageously wrong forecasts.
2023 US Sports Betting Industry Predictions
According to sports betting software reviews, the 51% tax on mobile betting in New York has been the subject of many complaints. However, not everyone finds it challenging to generate a profit. For instance, in November, FanDuel made $78.3 million in New York. However, it paid more than half of that to the state. Despite that, the sportsbook has plenty of money left over for providing excessive CEO bonuses. DraftKings is also thriving, and BetMGM and Caesars are likely making enough money to pay all their expenses in New York.
The gap between the haves and the have-nots widens. Five smaller businesses are vying for a considerably smaller market share than the four giants that aren’t afraid to spend big. During football season, PointsBet and BetRivers each make a couple of million dollars in income each month before taxes. Unfortunately, WynnBET, Bally Bet, and Resorts World Bet fall far behind. Several of these medium-sized businesses can’t survive at this rate. However, independent bookies using affordable betting software solutions can keep up with the changes in the industry.
According to gambling news sources, rumors exist that a specific operator will pull out of the New York market. It is predicted that this will occur in 2023, so soon after shelling out $25 million for a license may be a bit of a stretch. And I expect that will be the case. So by the beginning of 2024, New York will have only eight sportsbooks left because one of them will have decided the road to profitability isn’t there.