H2GC Reports The US and Sports Betting | Page 8

Global vs US Sports Betting 2006-16
Global vs US Sports Betting
Global
GGR (US $bn)
Land-based
Online (White & Grey)
Total
Online % Grey
2006 2016
33.4
8.2 36.9
22.0
41.6
58.9
47%
44%
% CAGR
2006-16
1.0%
10.4%
3.5%
2022e
42.6
32.2
74.8
42%
% CAGR
2016-22
2.9%
7.9%
US
2006 2016
3.9
1.3 2.3*
1.6
4.9%
5.2
84%
3.9
67%
% CAGR
2006-16
-5.1%
2.1%
-2.8%
*Note: predominantly horse
Source: H2 Gambling Capital, 2017
•
•
•
• Global sports betting has grown by 3.5% CAGR over the last decade - from $41.6bn to now total $58.9bn GGR (or $1.2tn handle).
Significantly, online sports betting has grown at 10x the rate of its land-based equivalent during that time.
In comparison, US sports betting has declined – by -2.8% CAGR from $5.2bn to $3.9bn GGR in 2016 (or $78bn handle).
At $22.0bn GGR, online sports betting currently represents 50% of all global online gambling – split $10.1bn horse, $11.9bn sports.
• In terms of the world’s Top 30 Gambling Nations, the US currently ranks:
- No 1 for all gambling activity – with 29% of the global market;
- No 1 for land-based gambling – with 32% of the global market;
- No 4 for online gambling (behind the UK, Japan and China) – with 8.5% of the global market;
- But only No 28 for gambling spend as a % of GDP – with 0.65% (Singapore is No 1 with 2.09%);
- …and way outside the Top 30 for % online – with 2.7% (Ireland is No 1 with 45.5%)
• The Nevada ‘white’ market, by comparison, has grown at a steady 4.6% to now total $0.22bn GGR (or $4.8bn handle) – with forecast
growth to 2022 trebling - to 12.7% CAGR.
Driving the growth is the advent of mobile app betting which now represents 14% of all online activity, growing to 37% by 2022.
Of the sports bet on, over two-thirds made at the State’s 191 sports books are currently on American football (37%) and basketball
(31%) – with horse race betting declining from 20% of all bets to just 7% today, and 3% by 2022.
•
•
US Nevada ‘ White’ Market Sports Betting
US $bn
Handle
GGR
% Online (Mobile)
% Horse
2006 2016 % CAGR 2006-16 2022e % CAGR 2016-22
2.9
0.14
Negligible
20% 4.8
0.22
14%
7% 5.2%
4.6%
30.2%
-10.0% 7.4
0.4
37%
3% 9.0%
12.7%
21.5%
-15.6%
Source: H2 Gambling Capital, 2017
h2gc.com
© H2 Gambling Capital 2017
8