U.S. Gambling Industry Hits Record $25 Billion in Handle During August
October 17, 2020
Any doubts about the tremendous impact legalized sports and online betting might have in America can now be set aside. After only 27 months since the U.S. Supreme court lifted the nation’s ban on sports and online betting outside of Nevada, the U.S. gambling industry is fast becoming America’s latest success story.
It’s been about two years since New Jersey, Pennsylvania, and Delaware joined Nevada as the only states where residents were able to legally bet on sports and online casino games. In subsequent months, we have seen another 13 states join in the fray with another 6 or 7 states waiting in the wings.
In those approximately two years, the U.S. gambling industry has grown beyond anyone’s wildest dreams. In August 2020, the industry pulled in more than $25 billion in gross handle for the month. That incredible handle translated to over $1.9 billion of revenue with approximately 9% of that going into state coffers.
While established gambling states like Nevada and New Jersey led the way, it was surprising to see states like Pennsylvania and Indiana contributing so much to the industry’s success. For the month, Pennsylvania and Indiana recorded $2.695 billion and $1.202 billion in the handle, respectively.
Why the Sudden Explosion of Gambling in the U.S?
In all likelihood, the U.S. gambling industry might have seen these kinds of numbers coming in earlier this year. However, the COVID19 pandemic brought the entire industry to a complete standstill all the way up until July.
Clearly, the gambling handle and revenue numbers were drastically affected by the fact sports bettors couldn’t wager on March Madness or the NBA and NHL playoffs. That’s not to mention that bettors also missed out on getting access to the first four months of the MLB season.
Not to be deterred, the nation’s gambling enthusiasts were evidently standing by, waiting for the opportunity to strike. When the sports world came back to life in July, U.S. sports gamblers went to work.
The numbers in July were not strong, but they showed great promise. It’s important to remember that it wasn’t until the end of July that the NHL, MLB, and NBA finally got back to work. With all of the pent up demand that was building going into August, it’s not really a surprise that the August numbers destroyed all prior monthly records.
With the August numbers now in the books, the real fun begins. The NFL regular season is underway. As big as the numbers were in August, it’s very likely September’s numbers will be even bigger.