Sports betting is hot but not without challenges

The recipe for building a legal sports betting market in the U.S. includes two ingredients found in just about every household:  football fans and the ubiquitous smartphone. 

As of October, about 27 states had approved measures to allow for legal sports betting. While some states offer retail betting options (usually at brick-and-mortar casinos), online sports betting is the most common method of wagering and Kagan believes the vast majority of bets in the future will be placed by users on mobile devices.

The Kagan third-quarter 2021 U.S. Consumer Insights survey found that 17% of surveyed internet adults placed a sports bet (in person or online) over the past twelve months.  Over half (53%) of internet adults report watching football, making it the most popular live TV sport in the U.S. Yet, Kagan’s U.S. survey results show that only 22% of TV football viewers placed a sports bet over the past year. 

The prime target consumer group for sports betting is smartphone-centric adults who frequently view live TV sports (at least once a week).  Smartphone-centric refers to using a smartphone to perform a variety of activities, including online purchases.  The survey data shows that three-quarters (77%) of current sports bettors watch live TV sports at least once a week.  The majority of current sports bettors (55%) being are both smartphone-centric, and frequent live TV sports viewers.   But only 25% of total internet adults fit this same description.  By expanding the target market to include both frequent and infrequent sports viewers (such as NFL football only viewers), approximately two-thirds (64%) of current sports bettors and 36% of total internet adults could be potential users of mobile sportsbook apps.

Current sports bettors tend to be younger male adults under 40 years of age. Growing the overall sportsbook market in the U.S. will require attracting older adults and casual sports fans, along with promoting female participation and low-dollar wagers. Overcoming the hesitancy of some consumers to use their phones for online purchases may also be a key to the future expansion of the U.S. sportsbook market.