H2 Gambling Capital Archives

March 8, 2023

US sports betting in 2023: Where do we go from here?

H2 Gambling Capital's in-depth analysis of the current state of the US sports betting market, and its future growth trajectory, is now available as a report.

H2 Gambling Capital: US sports betting exceeding expectations

The fifth anniversary of the Supreme Court striking down the Professional and Amateur Sports Protection Act (PASPA), paving the way for legal betting in the US, is fast approaching.

Over this time there has been a wholesale reshaping of the US gaming sector, with mobile betting racing across multiple states, and a pandemic arguably accelerating rather than slowing its spread.

What next for the market?

It’s against this backdrop that H2 Gambling Capital, in partnership with iGB, is looking at what’s next. As the pace of new state launches slows, where is growth coming from?

Report author Ed Birkin, H2 Gambling Capital

For a sector in which a small cohort of brands tend to occupy podium positions in each state, there is there is perhaps more scope for upheav..

February 2, 2023

US sports betting: Is micro betting the sports equivalent of igaming?

As the US sports betting industry evolves, could this herald a new genre of products? H2 Gambling Capital examines micro betting, one of the first innovations to emerge.

Micro betting is a subset of in-play wagering that allows players to wager on individual moments in a game in real-time. It offers the instant gratification / continuous betting opportunities of igaming but with the skill of sports betting.

Jump to:

In-play betting – Market potential

Micro betting – Market potential

Micro betting – Current performance

Micro betting could be a key driver to increase in-play wagering of US sports to levels of that seen in Europe for basketball and tennis, with the majority of wagering activity being incremental to existing spend.

Other benefits of a high frequency, low price sports betting product include:

Attracting a younger generation of customers that prefer less time commitmentIncreasing player engagement and therefore LTVsIncreasing spend of “casual” players – therefore red..

February 1, 2023

US sports betting: What will drive future growth?

H2 Gambling Capital analyses the factors that could drive ongoing growth in the US sports betting market, and whether products or new markets will play decisive roles.

Jump to:

Expansion into new states

Growth in existing states

Expansion of in-play wagering

What drives gross win?

Expansion into new states

A material amount of sports betting gross win growth that H2 Gambling Capital has forecast is based on further expansion into new states.

H2 Gambling Capital forecasts US sports betting gross win to reach $23.2bn by 2030. Of this growth 57% is from states where sports betting is already legal, while 43% is from states where sports betting is expected to legalise in the coming years.

In terms of the importance of new potential states, California is by far the most important, although the recent ballot result means that H2 does not expect anything to pass in the state for at least another four years. By contrast, Ohio launched sports betting on 1 January 2023 with Massachusett..

January 31, 2023

US sports betting: Online market share

H2 breaks down market share in part three of this in-depth analysis of the US sports betting market, and whether today's dominant brands will stay in pole position.

H2 Gambling Capital produces state by state, monthly online, retail and total US sports betting market share data by operator, utilising state-reported data and estimates for states where data isn’t reported, as well as incorporating company reported data.

FanDuel’s dominant position

FanDuel has become the clear market leader in terms of online sports betting. While other operators may have managed to generate a similar market share of handle in some states, FanDuel’s structurally higher margin (due to a superior parlay betting product and arguably best in class risk management) has led to a substantial market share lead in terms of gross win.

While the focus is on gross win, a number of states split out promotional activity, and share of net revenue is the key metric. Looking at a state such as Pennsylvania shows..

January 30, 2023

US sports betting: The state of play

H2 Gambling Capital provides an overview of the state of the US sportsbook market today, with a sport-by-sport analysis, new insights on bet types and the role of free bets.

Sports betting is now legal in some form in 33 states, and $85bn of legal wagers have been made with licensed US sportsbooks in the past 12 months.

Jump to:

Sports betting gross win per adult

Free bets

By sport analysis

Bet type analysis

Despite a handful of states only allowing retail sports betting, over 90% of handle is generated through online / mobile sports betting.

In terms of gross win / customer losses, US-licensed sportsbooks have generated over $6.3bn in gross win (handle less prizes paid out) over the past 12 months, with just under 90% of this generated through online / mobile channels.

However, we note that gross win figures include free bets, so the actual net win (the actual customer losses) is much lower than this.

The hold margin can vary substantially on a month-by-month basis, due to s..

January 30, 2023

US sports betting in 2023: Where do we go from here?

May marks the fifth anniversary of PASPA's repeal, and US sports betting proliferating at pace. iGB's principal data partner H2 Gambling Capital analyses the current state of the market, and the forces that will drive continued growth.

Over the week starting 30 January, iGB will release H2 Gambling Capital’s latest in-depth analysis of the US sports betting market. Read part one here.

H2 Gambling Capital have assessed the major trends and developments of the past year of US sports betting which has seen over $85bn legal bets made across 33 states – 90% of which has taken place online.

The gross win generated over the same period totals over $6.3bn but H2 estimates that free-bets make up around 39% of this, indicating that net win came in at $3.8bn.

Commercially regulated sports betting is now available to 43% of the US adult population across 26 states which have a combined GDP of over $10tn. With this considered, H2 estimates that the average gross win per adult over th..

October 26, 2022

Ontario report

iGB’s new report on Ontario offers exclusive insight into Canada’s most populous province – the first to regulate betting and igaming.

When the Ontario market opened in April this year, it wasn’t quite brand new ground.

Anyone in the industry could tell you that the grey market in Canada’s largest province had been thriving for quite some time.

Still, bringing the province from grey to white offers certainty and new opportunities for many.

Six months on, we have a sense of the spoils available. Operators – excluding the lottery – brought in a combined CA$267m in the three months ended 30 September.

The biggest challenge in the province, however, may be marketing rules. Operators can offer bonuses, but may not promote them. As Marese O’Hagan writes in our progress report, that’s been difficult, but it hasn’t seriously dampened excitement about the jurisdiction.

And for now, those complying with the rules still need to compete with some unlicensed brands, which continue to do busin..

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