How Much Will People Bet This NFL Season?

Ever since the 2018 repeal of the Professional and Amateur Sports Protection Act of 1992 (PASPA), the gambling industry in the U.S. has experienced incredible growth. This has been greatly helped by the growing number of states that have legalized sports betting in some capacity (either mobile or in-person sportsbooks). Not only has the increase in states with legalized markets helped to grow the popularity of sports betting apps like DraftKings, FanDuel, and BetMGM, but it has also meant big money for the gambling industry.

According to the American Gaming Association's year-end report, 2023 marked the gambling industry's best year ever recorded, with revenue topping $66.65 billion (it's worth mentioning this was a 10% increase over 2022 revenues). While the majority of this revenue is still based on in-person sportsbook and casino gambling, sports betting — both land-based and online — is quickly becoming a significant part of the industry's record-breaking revenues. In 2023, $11.04 billion of the industry's total came from sports betting, representing a 46.1% increase in year-over-year revenue growth. In fact, Americans reportedly wagered $121.06 billion just on sports in 2023 (a 29.1% increase from 2022). All of this is to say, the industry shows no signs of slowing down.

Given the upward trajectory of the market, things are only expected to continue growing with the start of the NFL's 2024 season. In fact, projections look so good the American Gaming Association published its first ever wagering estimate ahead of the season. The AGA estimates that Americans will legally bet a whopping $35 billion this NFL season.

While there exists a profitable gambling market across all major sports leagues, perhaps none are as financially significant as the NFL. According to 2022 data from CRG Global for Variety Intelligence Platform, 81% of mobile gamblers had placed bets on the NFL compared to the next highest league, the NBA, with 54% of gamblers. NFL bettors were also more likely to bet weekly, and total wagers for online sportsbooks experienced notably higher numbers during the months of the NFL season and its postseason. In short, the NFL is, by far, America's favorite sport to bet on and this also means the NFL easily brings in the most money for the gambling industry (not to mention how much people bet on events like the Super Bowl).

According to AGA data, Americans placed $26.7 billion in legal bets for the 2023 NFL season (or $8.3 billion less than what the gaming association forecasts for 2024). Part of this continual growth in revenue is tied to new states legalizing sports betting. For instance, for the current NFL season, Maine, North Carolina, and Vermont will have newly launched sports betting markets in their states. This maintains the novelty of sports betting, which in turn helps grow the industry's revenues. Jane Bokunewicz, director of the Lloyd D. Levenson Institute for Gaming, Hospitality, and Tourism at New Jersey's Stockton University, explained to The Associated Press, "As a form of entertainment, legal sports betting might be a new and novel experience for many patrons, and with its relatively low cost of entry, may be attractive to them even if their discretionary spending budget is limited."

As of September 2024, the number of states that have legalized sports betting has reached 38 (plus the District of Columbia). It's also worth mentioning that Missouri voters will have a ballot initiative regarding legalization in the upcoming November 5 election. Plus, Oklahoma currently has active legislation, proposed by the state's governor no less, to legalize sports betting in the state. While a few states remain holdouts in the battle for sports betting legalization, every new state brings new revenue potential for the industry.

However, despite the gaming industry's impressive growth, and even more impressive revenues, there are some dark sides to the sports betting industry that consumers should be aware of. Namely, the noticeable increase in calls, texts, and chats to problem-gambling hotlines. According to the National Council on Problem Gambling, its national helpline experienced a 43% increase in calls, 59.8% increase in texts, and an 84.1% increase in chat volume just in 2021 alone. Not to mention, research suggests problem-gambling behaviors can be especially detrimental for kids. This can be exacerbated by the video-game like quality of many of the current sports betting apps out there, as well as the youth-targeting marketing campaigns of popular sportsbooks like FanDuel.