From News To Moves
Sports betting revenue is soaring with live in-game wagers, with regulation closing in. Here’s how investors can play both sides of the rising tide.
By William Bronson
Sports bettors in Maryland wagered $651 million in September, up 50% compared to August. In North Carolina, sports betting totaled $686.1 million, a 43.3% month-over-month increase. And in New York State, sports wagers reached almost $2.3 billion, the fourth-highest monthly wagering amount in both state history and nationally.
America’s love affair with sports is strong. Sports wagering has exploded since the Supreme Court cleared the way for states to legalize it in 2018, and it is now legal in 39 states and D.C.
Regulators are scrambling to catch up. This year, Illinois, Louisiana, Maryland, and New Jersey passed laws that increase taxes on sports betting, internet gaming, and fantasy sports. And North Carolina doubled their sports betting tax rate to 36%. States now want their piece of the pie.
But it’s not all about revenue. Some states are trying to help curb the addictive nature of gambling while still allowing gambling. In Massachusetts, officials rolled out a program called GameSense, which places responsible-gaming advisers inside casinos and even in betting apps.
Meanwhile, the sports betting industry is looking for ways to increase its products’ appeal. Now you can bet on the next drive, pitch, or shot. The New York Times reports that live in-game betting is now the fastest-growing feature in the business. It makes gambling more interactive, more frequent, and for some, more addictive.
The sports betting pot of money is staggering. In 2024, U.S. sportsbooks pulled in $13.71 billion in revenue on nearly $150 billion in total bets placed, which are both record highs, according to the American Gaming Association. The wider gaming industry hit $71.9 billion in commercial revenue, marking its fourth straight record year. And the market isn’t slowing down: analysts see it climbing about 11% a year, with operators pulling in close to $30 billion by 2030.
Gambling giants are expanding like a tidal wave through partnerships and acquisitions. Sportradar recently acquired IMG Arena’s sports betting rights portfolio, giving it control over vast content tied to big events like Wimbledon, U.S. Open, soccer, and basketball leagues. Meanwhile, ALT Sports Data is set to expand into Formula 1 racing, surfing, and the X Games. In addition to expansion, the backbone of sports betting platforms is in the consolidation of data, which amplifies the power of data suppliers, increases profit margins, and expands consumer access.
Legal wins and corporate deals set the stage, but product design is what makes this market addictive. Same-game parlays and live play-by-play bets turn sportsbooks into sticky media platforms, engineered to hold attention as tightly as a video streaming app.
The opportunity in this sector lies in whoever sits behind the betting apps themselves:
Data suppliers like Genius Sports and Sportradar profit because live betting requires official, real-time game data delivered in milliseconds. Payment processors such as Paysafe and Nuvei win as transaction volumes soar, and every wager needs a secure ID check.
Meanwhile, media affiliates like Gambling.com Group benefit because operators must market under stricter advertising rules, and compliant affiliates capture more share. Then, the casinos and resorts cross-sell sports bettors into hotels, dining, and entertainment, turning betting apps into gateways for additional revenue.
Sports betting is now a $150 billion industry, with state regulators tightening their grip on it. Despite the regulatory actions, rising taxes, and shrinking margins, stocks like DraftKings and FanDuel continue to thrive. Here are our bets on the industry.
Sports betting is fast-growing and increasingly regulated, while sportsbooks dominate headlines, casinos, ad-tech leaders, and fintech rails capture the spoils. BETZ delivers pure exposure, while BJK, MRAD, and ARKF round out the broader ecosystem of this high-growth industry.
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