Will ESPN Wager On Sports Betting?

Big news: ESPN is looking to license their brand for sports betting with a rumored deal size of $3B+.

Big question #1: How many states have legalized betting on sports?

Quick answer: 32 states and the District of Columbia.

Big question #2: How large is the U.S. sports betting market? 

Estimated U.S. sports betting wagers (YoY growth) according to Activate Consulting:
1) 2017 – $5B
2) 2018 – $7B (↑ 40%)
3) 2019P – $13B (↑ 86%)
4) 2020P – $31B (↑ 138%)
5) 2021P – $63B (↑ 103%)
6) 2022P – $102B (↑ 62%)
7) 2023P – $149B (↑ 46%)

Quick math on annual sports betting per adult:
1) $63B wagered in 2021
2) 258M adults in the U.S.
3) $244 bet on sports by average U.S. adult in 2021

Big question #3: Why are media companies interested in sports betting? 

Quick answer: Improved ratings/viewership and secondary sources of revenue.

Indirect sports betting revenue (YoY growth):
1) 2020P – $1.9B
2) 2021P – $5.8B (↑ 205%)
3) 2022P – $9.2B (↑ 59%)
4) 2023P – $11.7B (↑ 27%)
5) 2024P – $13.2B (↑ 13%)

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