The world’s largest bank thinks the recent rise of sports betting only marks the beginning of what will be massive growth for the market.
The nascent industry, which brought in an estimated $1.5 billion in revenue in 2020, will balloon to $9.2 billion in revenue by 2025, according to a new 33-page report from JPMorgan.
The growth presents a huge opportunity for U.S. media companies in particular. “Media networks are only scratching the surface when it comes to the value they can drive for betting platforms,” the analysts wrote.
Even so, there has already been significant movement concerning the convergence of sports betting and media.
- In January 2020, Penn National Gaming announced a $163 million investment in Barstool Sports for a 36% equity stake, with warrants that, if exercised, would give Penn majority control after three years.
- PointsBet became the exclusive betting partner for NBC Sports in August in a five-year deal worth approximately $500 million.
- Streaming service FuboTV acquired gaming company Vigtory last month. Fubo expects to launch a sportsbook by the end of this year, leveraging Vigtory’s technology to integrate betting into broadcasts.
- BetMGM signed a deal with The Athletic last month making it the sports media company’s exclusive gambling partner in the U.S.
Sports betting has been legalized in 25 states, with all but five presently running operations.
The three most populous states, California, Texas, and Florida — which have a combined population of around 90 million — have all yet to legalize, but legislation that would do so has been proposed in each.
