AGA Pleased With Sports Betting Growth After Vegas Super Bowl

In the wake of the first-ever Super Bowl in Las Vegas, the American Gaming Association is bullish on the growth of sports betting in 2024.

Ahead of the Super Bowl, nearly 68 million American adults signaled their intention to place a wager on the NFL’s signature event, according to an AGA survey. With February data still trickling in, the volume on Super Bowl wagers would represent a spike of about 35% from 2023 if the ticket count is in line with forecasts. Moreover, bettors planned to wager an estimated $23.1 billion on the NFL championship, up from about $16 billion a year ago, the survey found.

The Super Bowl capped a successful season on the legal sports betting market, where several new states kicked off their first full season with offerings on the NFL. The launch of sports betting in Ohio and Massachusetts helped contribute to new records in 2023 for handle and gross gaming revenue (GGR). The addition of the two sports-crazed states led to nationwide GGR of $10.9 billion on handle of $119.8 billion, according to statistics released on Tuesday.

That represented an increase of 44.5% and 27.8% respectively, in the two categories. The AGA is the nation’s leading casino and gaming industry trade group.

Mainstream news coverage

Prior to the Super Bowl, two mainstream news magazines examined the state of the U.S. legal sports betting market, nearly six years after the historic PASPA decision.

First, ESPN’s Outside The Lines ran a four-part series the week between the conference championships and the Super Bowl. The series included former Colts defensive back Isaiah Rodgers Sr.’s first interview since his gambling suspension last year for wagering on the NFL.

On the same day that ESPN concluded its series, 60 Minutes aired a lengthy segment later that evening. The news magazine, which is reputed for segments on professional sports bettor Billy Walters and offshore bookmaker Ron Sacco, tackled a number of weighty topics in a segment authored by Jon Wertheim.

Following a 4-part series from @OTLonESPN, @60Minutes will air a segment on Sun examining the confluence of advertising, data privacy, A.I. and promotional inducements on the psyche of incipient sports bettors. Our preview in @sports_handle : https://t.co/9gldYgBscI @jon_wertheim

— Matt Rybaltowski (@MattRybaltowski) February 3, 2024

During his report, Wertheim documented the cat-and-mouse game that often transpires between major sportsbooks and inveterate gamblers. Armed with vast troves of customer data and cutting edge technologies such as artificial intelligence, sportsbooks have created an unfair playing field, Wertheim argued.

To buttress his point, Wertheim interviewed a U.K. problem gaming specialist who claimed that Flutter employed methods to gauge the type of advertising inducements that had the most lasting impact on customers. The expert, Matt Zarb-Cousin, gathered information from a public records request which indicated that Flutter collected 93 different data points on a single customer.

Wertheim also interviewed AGA CEO Miller from the organization’s headquarters in Washington, D.C. While Miller noted Tuesday that his portion of the segment aired for just one minute and 37 seconds, he emphasized that the interview altogether took about 90 minutes. Following the episode, Miller received some criticism from social media users for allegedly downplaying the rise of problem gambling caused by mobile sports betting.

“I don’t believe that there is an addiction to mobile betting any more than there is an addiction to utilization of your phone for any other reason,” says Bill Miller, who represents the gambling industry. pic.twitter.com/8HwTiFTjoT

— 60 Minutes (@60Minutes) February 5, 2024

“Do I think it was the best articulation of our view of the industry? No, I don’t,” Miller said Tuesday in a conference call with reporters.

Miller stressed Tuesday that there are still “outdated or stereotypical dynamics” of legal gambling that are misconstrued, particularly for an industry that contributes so much in tax revenue and economic impact through new jobs. The industry’s investment in problem and responsible gambling initiatives did not receive enough attention in the piece, Miller contended, adding that the lack of coverage was “a shame.”

Responsible gambling plans for 2024

The AGA held Tuesday’s State of the Industry presentation against the backdrop of two closely watched federal bills.

Last year, U.S. Congressman Paul Tonko (D-New York) introduced legislation that calls for a federal ban on sports betting advertising. Then, last month, Sen. Richard Blumenthal (D-CT) and Rep. Andrea Salinas (D-OR) introduced legislation that would earmark revenue from the federal excise tax on sports wagering for gambling addiction treatment and research.

The industry’s ability to strengthen responsible gambling outreach in 2024 will prove critical for its long-term sustainability, said Cait DeBaun, who serves as the AGA’s vice president of strategic communications and responsibility. The AGA has plans this year to bring together members, advocates, regulators, and other key stakeholders to bolster responsible gambling nationwide. This includes strengthening responsible gambling standards and improving communication to vulnerable players.

“It certainly won’t be easy, but our potential success will be transformative for decades to come,” she said, while Miller reiterated that people who struggle with gambling addiction should receive the help they need.

While fewer states are expected to legalize sports betting this year in comparison with 2023, North Carolina online sports betting is set to go live next month. Further south, legislators in Alabama are making progress with attempts to bring sports wagering to the state.