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Expanding sports betting in the U.S. could generate a staggering $5 billion in revenues by the year 2023.

U.S. sports betting market growth may yield $5 billion in profits by 2023, sparking a rise in British betting stocks. Analysts at Jefferies have bumped up their target price on the U.K.-listed trio Flutter Entertainment, formerly known as Paddy Power, anticipating this upward trend.

Anticipated profits from U.S. sports betting could surge to an impressive $5 billion by the year...
Anticipated profits from U.S. sports betting could surge to an impressive $5 billion by the year 2023.

Expanding sports betting in the U.S. could generate a staggering $5 billion in revenues by the year 2023.

In the dynamic landscape of the U.S. sports betting market by 2023, three key players emerged as dominant forces: Flutter Entertainment, GVC Holdings (now Entain), and William Hill.

Flutter Entertainment, previously known as Paddy Power, made a significant move by acquiring The Stars Group in 2020. This strategic move integrated popular brands like FanDuel, positioning Flutter as a market leader. The company's focus on expanding its online presence and capitalizing on the growing legalization of sports betting across various U.S. states paid off, with substantial revenue contributions from the U.S. segment.

GVC Holdings, which rebranded as Entain in late 2020, played a crucial role in both the U.S. and global sports betting markets. Its acquisition of Ladbrokes Coral expanded its footprint, including in the U.S. via online platforms. Entain emphasizes ethical betting, compliance, and technological innovation, which supports its growth in regulated markets like the U.S. While Entain holds a significant share of the market, its U.S. presence is typically smaller compared to Flutter’s FanDuel brand.

William Hill, historically a leader in sports betting, was acquired by Caesars Entertainment in 2021. This integration has enhanced William Hill's competitiveness in U.S. states where sports betting is legalized, leveraging both its physical sportsbook locations and online platform.

By 2023, these companies held substantial market shares and generated notable profits. Flutter was generally the largest player, often cited as holding the largest share among operators. Entain maintained a growing, yet smaller share, focusing on technological integration and compliance. William Hill, under Caesars, sustained a strong presence through both retail and digital operations.

The predicted profits for these companies in the U.S. market by 2023 were influenced by rapid market expansion and growing acceptance of sports betting. For example, the broader cricket and sports betting market in North America is projected to grow significantly, supporting these companies’ upward revenue trajectories.

Jefferies, a leading investment bank, predicted that the U.S. sports betting market would bring $5 billion in profits by 2023. However, James Wheatcroft, a Jefferies analyst, stated that current valuations of Flutter, GVC, and William Hill do not attribute any material value for the U.S. market, suggesting that there is room for further growth.

In the competitive U.S. sports betting market, these major players continue to shape the industry's future, with their strategic acquisitions, focus on innovation, and commitment to compliance shaping the market's trajectory. The precise financial figures and market shares are subject to proprietary company data and state regulatory disclosures, but align with the trends of rapid growth and consolidation in the U.S. sports betting market around that time.

Flutter Entertainment, with its acquisition of The Stars Group and strategic positioning of brands like FanDuel, has ventured into investing in the sports-betting sector, aiming to capitalize on the growing legalization of sports betting across U.S. states.

Jefferies, a leading investment bank, forecasted that the U.S. sports-betting market, including companies like Flutter, GVC, and William Hill, would yield substantial profits by 2023, suggesting there's potential for further growth in this market.

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