Monthly Archives: August 2019

Iowa Sportsbooks to Generate Billions in Bets and Millions in Tax Revenue for the State

Iowa’s online and retail sportsbooks could generate more than $4 billion a year in bets once the fledgling industry in the Hawkeye State hits full maturity, according to analysts for PlayIA.com, which delivers news on the Iowa sports betting and gambling industries. 

On Thursday, when a number of physical and online sportsbooks launch, Iowa will become the 11th state to actively accept legal sports bets. And that will officially open the door to an industry that will eventually inject millions of dollars into state coffers.

“Once the Iowa market reaches maturity, its potential is on par with what Nevada is today,” said Dustin Gouker, lead analyst for PlayIA.com and a veteran observer of the legal sports betting markets across the U.S. “That means a handle that will exceed $4 billion a year, and perhaps approach $5 billion. And as we have seen with the success of the early adopters of legal sports betting, such as New Jersey, the state should reap millions in tax revenue.”

According to PlayIA.com:

  • It will take Iowa five years or more to reach full maturity. But once it does, the state’s handle should eclipse $4 billion and even approach $5 billion. Those estimates are based in part on the handle that Nevada generates with a population that is similar in size to Iowa.
  • If Iowa reaches its full potential as a market, operators could generate more than $300 million a year in revenue, or “win” in gaming parlance.
  • With a tax rate of 6.75%, Iowa would generate more than $20 million a year in tax revenue if the win reaches $300 million a year.

“We have seen in almost every legal jurisdiction that sports betting can be safely regulated and serve as an economic engine for the state, and Iowa should be no different,” Gouker said.

If there is a downside for Iowa it is that the opportunity to generate significant revenue and handle will be muted to start. That is almost entirely due to the  requirement that online bettors sign up in-person at a physical sportsbook until early 2021, which will initially slow the industry’s growth.

In New Jersey, where there is no such requirement, more than 80% of all sports bets are made online. That will be a level unreachable in Iowa until the in-person requirement is lifted.

“The requirement of in-person sign-ups until early 2021 will mean Iowa will not capture all of the market at the start,” Gouker said. “But once that requirement sunsets, Iowa sports betting should really take off.”

For more information and analysis on regulated sports betting in Iowa, visit PlayIA.com.

Report: Fantasy Sports Market To Reach More Than $1.5 Billion By 2024

Credit: Keith Allison

The fantasy sports market size is expected to reach more than $1.5 billion by 2024, growing at a CAGR of more than11% during 2018–2024.

Read the full report: https://www.reportlinker.com/p05806366/?utm_source=PRN

Increasing strategic collaborations and partnerships with diverse stakeholders, growing advertising and marketing spend, and rising interest of millennial are the major factors responsible for the increased growth of the fantasy sports market.
A major factor driving the growth of the fantasy sports business is the rise in the number of sporting events organized worldwide. The urge to participate in a sport event rather than view it has raised the bar of the market significantly. Technological advancements, coupled with the availability of streaming partners, are further driving the fantasy sports market.

The growing popularity of OTT platforms is expected to augur well for the fantasy sport segment. The OTT sports experience is set to observe innovation, which is mainly driven by fantasy sport business. Fantasy sport and OTT platforms have become an apt match for the overall entertainment business. With the growth in streaming service providers and digitalization, fantasy sport is expected to receive a major boost.

This research report on the fantasy sports market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The market study includes insights on segmentation by sports (football, soccer, basketball, baseball, hockey, golf, cricket, and other fantasy sports), gender (male and female), and geography (North America, APAC, Europe, Latin America, and MEA).

The study considers the present scenario of the fantasy sports market and its market dynamics for the period 2018?2024. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and examines leading companies and other prominent companies operating in the market.

Fantasy Sports Market: Segmentation

This market research report includes a detailed segmentation of the market by sports, gender, and geography. The worldwide popularity of football is a major reason for the highest share of the fantasy football segment. The segment captured around half of the fantasy sports market in 2018. The extensive fan engagement is another a major factor that is driving the fantasy football market segment. Strategic partnerships and the launch of supporting products across fantasy platforms have raised the standards of fantasy basketball in major playing countries.

As men have historically been receptive to sports and outdoor games, the male segment accounts for the highest share in the fantasy sports market by gender. However, over the last few years, the female population in fantasy sport has witnessed a reasonable surge. The growing number of women-centric sports events and the increasing awareness about games among womenfolk are the factors boosting market growth of female sports segment.