Forecasts for the US Sports Betting Sector in 2023: Expert Opinions Revealed

Embracing unpredictability is key when diving headfirst into the dynamic world of sports betting. Last year, few foresaw an active receiver receiving a year-long NFL suspension for betting on NFL matches, or the $250,000 fine slapped on Barstool Sportsbook by the Ohio Casino Control Commission for a pre-launch violation. As expected, some operators have bowed out (like Fubo Sportsbook), but the unexpected keeps on coming. Let's peer into the crystal ball and make some educated (or possibly way off base) predictions about what the sports betting industry might hold in the coming year. Here's what my colleagues had to share:

Eric Raskin, US Bets managing editor and media director: One of New York's nine mobile sportsbooks will shutter its operations in the state. We hear plenty of complaints about the 51% tax rate on mobile betting in New York and the tough profit margin, but some operators are struggling to stay afloat. With the mid-sized operators lagging behind even modest numbers, one may decide the path to profitability isn't there and exit the New York market in 2023.

Jeff Edelstein, analyst and opinionist: Brace yourself for a year of increased scrutiny and squirming as the sports betting industry faces increased scrutiny, accusations of infiltrating college campuses, and concerns about bonusing practices; recall the challenges faced by daily fantasy sports in 2015-16. State legislators are paying closer attention, and bills intent on curbing such practices are already being introduced in places like New York. The scrutiny could even extend to the federal level in 2023.

Matt Rybaltowski, senior reporter/analyst: Fanatics' shares will go up if the company decides to go public in 2023. Fanatics, a popular vendor of licensed sports merchandise, will soon launch its online sportsbook division, BetFanatics. With a $31 billion valuation and plans to acquire major sportsbook players, Fanatics looks set to shake up the market, securing a good start on public markets when it goes public later in 2023.

Brett Smiley, editorial director: Forget about risk-free bets - get ready for new laws reeling in sportsbook marketing and advertising. In 2023, a state that's already legalized sports wagering will pass restrictions concerning marketing and advertising, or impose limits on permitted betting activity. Whether it's a state or federal level intervention, the regulatory sentiment is becoming more restrictive, and policymakers are stepping up to regulate practices that may have been overlooked by the industry itself.

Mike Seely, associate editor: The XFL wagering scene will be robust as the league's innovative marketing strategies create opportunities for sportsbooks. Expect Dwayne "The Rock" Johnson's newly acquired XFL to attract interested bettors with novel schemes and financial incentives.

Chris David, SVP operations and marketing at VegasInsider: Ohio will challenge New York for the title of the second-largest betting market in the U.S. With a large college football audience and major professional sports teams in all four major leagues, Ohio seems positioned for increased betting activity. In fact, some projections have Ohio reaching close to $9 billion in bets in 2023, but bet on it topping that number and coming in over $10 billion.

Dan Back, SVP RotoGrinders & ScoresAndOdds: 2023 will see Missouri and Kentucky join the legal sports betting party. As these states continue to lose revenue to neighboring ones, it's only a matter of time before they legalize online sports betting.

Matt Schmitto, commercial content lead at RotoGrinders & ScoresAndOdds: Prepare for the Texas Legislature to pass a mobile sports betting bill, clearing the way for a constitutional amendment and legal sports betting in the Lone Star State. Given the growing support of key stakeholders, 2023 could be the year Texas finally jumps on the bandwagon.

Patrick Everson, senior reporter at VegasInsider: Legal political betting will land in the U.S. in 2023, opening up a new market for operators and bettors alike. With political betting being massively popular in countries such as the UK, it's only a matter of time before a smart state with lawmakers and regulators who recognize the opportunity steps up to the plate.

As we move into 2023, expect an ongoing expansion of legalized sports betting across states, accompanied by increased market fragmentation, technological innovation, and growing revenue. Despite the challenges, the sports betting industry continues to evolve and promises new opportunities for growth in the year ahead.

The sports betting industry may face increased scrutiny and regulatory intervention in terms of marketing and advertising, potentially limiting permitted betting activities in certain states. [Brett Smiley]
Some mid-sized operators may find the New York market's high tax rate and tough profit margin too challenging and decide to exit the market in 2023. [Eric Raskin]
The XFL, under Dwayne "The Rock" Johnson's ownership, is expected to attract bettors with innovative marketing strategies and financial incentives in the sports betting scene. [Mike Seely]
Missouri and Kentucky are predicted to join the legal sports betting party in 2023, as they continue to lose revenue to neighboring states with legal betting. [Dan Back]