To the cheer of sports fans and bettors across the country, March Madness kicks off again after a two-year hiatus caused by COVID-19. Since the Final Four nets were last cut down in 2019, the legal sports betting market has been on a run that rivals that of reigning tournament champions the Virginia Cavaliers.
At the last March Madness, sports betting was legal and operational in just eight states. That number now stands at 20 states plus Washington, DC, with five more states soon to launch. New American Gaming Association (AGA) research projects that 47.4 million American adults will place a bet on the tournament. An estimated 17.8 million will place a bet online—up 206% from 2019.
The growth of legal sports betting has never been more important to the gaming industry than over the last year, as pandemic-related casino closures and capacity restrictions have stifled brick-and-mortar casino revenue. In 2020, sports betting generated more than $860 million for the commercial gaming industry, a 130% year-over-year increase and by far the largest share of annual gaming revenue that sports betting has ever accounted for in the modern gaming era. In January 2021—the latest month with fully available data—half of commercial states saw year-over-year gaming revenue increases, primarily driven by the sixth-straight month of record sports betting handle nationwide.
We can only expect these figures to rise as state legislators look to fill pandemic-induced budget shortfalls and have taken notice of the $124 million sports betting generated in tax revenue in 2020. As of March 9th, 17 states have active legislation to legalize sports betting, and the AGA expects that at least six states will pass legislation to legalize sports wagering this year.
Through this expansion, the AGA is prioritizing responsible sports betting education in tandem with the growth of the legal market. Our Have A Game Plan.® Bet Responsibly.™ campaign continues to make strides in these efforts, recently partnering with FanDuel, the National Hockey League (NHL), NASCAR, and PGA TOUR to educate sports fans on the fundamentals of responsible gaming.
As we press on into 2021, continuing to unite in our shared responsibility to promote responsible sports betting will be essential to sustainably growing the legal market. If we do, sports betting will continue to buoy the gaming industry as it makes its comeback and propel us to new heights once we emerge from pandemic.
Jess Feil
Senior Director, Government Relations
American Gaming Association