As the college football season commences and the NFL prepares to start its regular season next week, the sports betting industry is gearing up for what is anticipated to be a record-setting period. The American Gaming Association estimates that Americans will wager $30 billion on NFL games this season, reflecting an 8.5% increase from the previous year.
Key players in the sports betting market, including FanDuel and DraftKings, are facing intensified competition from BetMGM and Caesars. Additionally, new entrants are emerging, such as Robinhood, which has partnered with Kalshi to offer prediction markets for football.
Despite this growth, the industry faces significant challenges from offshore, unlicensed sportsbooks like Bovada and MyBookie. These operators have come under scrutiny, prompting legal action. The Los Angeles city attorney recently filed a civil enforcement action against Stake.us and related companies, accusing them of conducting illegal gambling operations and seeking to halt their activities while also demanding refunds for players.
The issue of unlicensed gambling is drawing attention from state officials, as 50 attorneys general have urged the federal government to enhance enforcement efforts. They argue that states are losing approximately $4 billion in tax revenue due to these illegal operations.
Data from GeoComply indicates that states that actively enforce against unlicensed sportsbooks see a 10% increase in active players year over year, and they reported 38% more new player registrations in August. This reinforces the notion that regulatory measures may positively impact the legal sports betting market's growth.