The Exponential Growth of the Sports Betting Industry
In recent years, the sports betting industry has grown rapidly. The growth is especially prominent in the U.S. market. According to the American Gaming Association, the annual Gross Gaming Revenue (GGR) of the sports betting industry has been steadily increasing. GGR refers to the total amount of bets minus the winnings paid out, which is an important indicator of the industry’s growth.
History and Current Status of Sports Betting in the U.S.
Sports betting was first legalized in the U.S. in 2018. This became possible after the Professional and Amateur Sports Protection Act (PASPA), enacted in 1992, was overturned by the Supreme Court. This law had effectively made sports betting illegal nationwide, so its nullification marked a major turning point for the sports betting industry.
In 2018, the total sports betting revenue in the U.S. was $400 million, but by 2023, it had surged to $11 billion. Notably, Nevada, New Jersey, and Pennsylvania boast large betting volumes. Nevada, centered around Las Vegas, recorded over $5 billion in commercial gaming revenue, while New Jersey and Pennsylvania each generated over $2 billion.
Introduction to ETFs Related to Sports Betting
With the growth of the sports betting industry, related ETFs have also garnered attention. The two most notable ETFs are BETZ and BJK.
BETZ (Roundhill Sports Betting & iGaming ETF)
- Management Fee: 0.75%
- Assets Under Management: $80.9 million
- Top 15 Holdings: DraftKings, Flutter Entertainment, etc.
BJK (VanEck Gaming ETF)
- Management Fee: 0.65%
- Assets Under Management: $35.9 million
- Top 15 Holdings: Las Vegas Sands, MGM Resorts, etc.
Advantages of BETZ and BJK
These two ETFs each have their strengths. BETZ has a relatively high management fee but invests in a variety of iGaming companies, offering significant growth potential. On the other hand, BJK has a lower management fee and focuses on traditional casino companies, providing stable returns.
Future of the Sports Betting Industry
The sports betting industry is expected to continue its growth. So far, 38 states and DC have legalized sports betting, and more states are moving towards legalization. This is expected to lead to industry expansion and a rise in the stock prices of related companies.
Conclusion
The growth of the sports betting industry is likely to continue. Investing in ETFs like BETZ and BJK could be a smart choice to capitalize on this growth. Readers considering investment should carefully compare the advantages and disadvantages of each ETF before making a decision.
If you want to experience the growth of the sports betting industry firsthand, consider investing in related ETFs now!
Reference: Visual Capitalist, “Visualizing the Growth of U.S. Sports Betting”