All Sports Betting Picks Will Surpass a Trillion Dollar Handle
In May 2015, Nevada sports books monthly handle (gross revenue) set a monthly handle record of $295 million in bets. This is close to three straight years of month-to-month increased revenue for the books. It is estimated Las Vegas will surpass $5 billion in handle in 2017. In 2006, the industry brought in about $2.7 billion in handle and about $3 billion in 2010. The growth rates are way beyond expectations from the Vegas sportsbooks operators. With new mergers and international deals, all sports betting picks will soon surpass a trillion dollar handle. Estimates put the sports betting industry gross handle between 500 billion and 2 trillion dollars worldwide.
“I’m just flabbergasted,” said Jimmy Vaccaro, a long time Vegas sportsbook operator now at the Southpoint casino. “People can’t get enough of it. It’s growing and growing and growing, and it’s going to get bigger.” He mentioned the NFL bettors are filling his book to capacity.
Sports betting is booming. This was a small part of the casino to fill a need but not considered a priority before 2000. Then the uptick began in the 2001 to 2010 decade for the casino to revamp their facilities for more sports bettors. Today you can see the improved sportsbook environment with some putting 10 to 20 million dollars to expand and upgrade. The new sportsbook at Westgate is beyond anything in Vegas and others are following the trend towards sports betting.
These significant numbers are just in Las Vegas. These are sports books in Las Vegas only and don’t include offshore betting or illegal books all around the country and the world. This is not casino gambling where the house has the mathematical edge but sports betting where the house puts up a number and hopes it is accurate. Although slot machines are still a dominate force on the casino floor, casinos love a big sportsbook crowd to spill over to other casino games when the sports action is over.
How to explain this large increase in sports betting handle
Several years ago William Hill and CG Technology proposed downloading sports betting apps that could be used over mobile phones. With state gaming approval, most sportsbooks followed. During the March Madness tournament, mobile wagering was at an all time high for the tournament.
Mobile betting did add to revenues without being too intrusive on the sportsbook operation. A lot of bettors still went to their favorite sportsbook to bet and socialize which a small screen on your smart phone cannot provide. But it has a built in convenience to bet when you are at home and saves time. But only available in Nevada. Besides this technology is an extra tool the casino provides to get your money if you cannot step into the casino sportsbook for your NFL picks, NCAA picks and the other available sports betting options. This smart phone technology has increased the betting handle and fills a gap.
There is more than one technology that makes sport betting so much more popular. The fantasy league is another example with its huge participation in sports results and financial gains with a unique format. How the main stream media reports all this sports information has reached new heights for their readers to digest. The crossover between these technologies combined with the brick and mortar sportsbooks are interwoven to extend this giant industry to a new plateau. The Las Vegas sportsbooks have a legal monopoly with their sophisticated and very popular operation for a long time to come. Legal sports betting has become legal in all states, but it will still lag Las Vegas in structure and location. New state sports betting laws will not pass quickly. Maybe 25 states will regulate their own sports betting platform within a year or more but Vegas is unique and one of a kind.
A growth period that will surpass the trillion dollar mark
MGM and Boyd Gaming announced a market access agreement that could allow the companies to significantly expand the scope of their online and mobile gaming operations throughout the U.S. Under the agreement, the companies plan to offer sports betting, poker and other casino gaming platforms in jurisdictions where either Boyd Gaming or MGM Resorts operate physical casino resorts and online licenses are available.
“Our industry is evolving, providing opportunities for growth through new forms of gaming like online and mobile gaming,” Boyd Gaming President and CEO Keith Smith said. “Thanks to our partnership with MGM Resorts, Boyd Gaming will have the opportunity to potentially add an online presence in five additional states, positioning us for significant future growth as our respective companies take a leadership role in our industry’s evolution.”
By late-August, MGM Resorts and Boyd Gaming will operate land-based gaming facilities in 15 states combined. MGM Resorts is scheduled to open MGM Springfield, a new facility in Western Massachusetts, on Aug. 24. Massachusetts State Rep. Joseph Wagner expressed optimism that the framework for a sports betting bill could be completed by early next year. MGM also owns properties in Maryland, Michigan, Mississippi, New Jersey, Pennsylvania and New York.
What can US bettors expect from a global merger of betting platforms
The sports betting landscape has joined the internet world especially in the last ten years. The global sports betting markets are more sophisticated and accessible through the vast extensive reach of fast connecting internet services and worldwide demand. Worldwide sports betting markets are produced and operated by well known large international companies that are listed on global trading stock exchanges.
This very large sports betting industry is growing worldwide with other major investment platforms like stocks, bonds and commodities. Some of the betting market systems were created to serve millions of people worldwide. US bettors are a major force for betting revenue. Betting the NFL is the biggest draw for sports bettors. The NFL adds games each season at Wembly stadium in London that are sold out. Betting kiosks around London supply the legal betting outlets.
The big sports betting markets are in Europe, especially the United Kingdom. Two of the biggest betting companies are Betfair and Sporting Index. William Hill is in the UK and was the first to expand to Nevada with heavy presence in Las Vegas. Their format or betting platform is called spread betting. Will spread betting be allowed in the US with these agreement deals between MGM and GVC Holding. Our betting platform is called fixed odds betting and spread betting is very similar with most US sporting events to bet on.
Spread Betting offers its prediction on the outcome of various sporting events in the form of two spread numbers. These two numbers are one less and one more than a fixed spread in the US. A US spread of -3 points would have a spread bet line of +2 to -4 points. The amount you may win or lose will vary according to how right or how wrong you are compared to their posted prediction. Unlike fixed odds used in the states, spread betting is more complex but very profitable for bettors if they cover the spread. The risk-reward outcome is in multiples of your bet amount. The profit or loss is determined by the difference between the final score and the spread number you bought or sold at multiplied by your bet amount.
To place a bet with spread betting you buy the favorite or sell the underdog. A -3 point line in the US books would be a spread betting line of +2 to -4 points in London. If you like the favorite you buy at -4 or if you like the dog you sell at +2 points. If the favorite wins by 10 points you win 6 times you bet (10-4=6). If the dog wins by 10 points you win 12 times your bet (+2+10=12). You can also lose multiple times your bet. You would lose on your favorite bet if the dog won by 10 points —- a loss of 14 times your money ( -4-10=-14 ).
Another global sports betting market is a Betting Exchange.
Although the intensity and risk-reward options of spread betting are amazing, the head to head challenge of a betting exchange is more subtle and simplified. A betting exchange is very similar to a Nevada sports book but you are matched up against other players like a poker game. The house (exchange) takes a small rake or percentage of each play. Instead of winning or losing to a sports book, you are exchanging funds with another bettor just like you. Exchange bettors have accounts to play against other bettors and winners or losers are determined by the exchange which makes the adjustments in the bettors accounts — all done by user friendly software.
The exchange is an intermediary that uses their software to regulate and operate the action. Their betting lines are the same as Las Vegas lines with the difference being the dollar odds or juice posted, not the bet amount. A dime line can become a nickel line in seconds. Betting the NFL is the most popular among exchange bettors.
This unique exchange between bettors produces much lower juice odds on the betting line. If you are laying -7 points or taking the dog, then you are usually risking $-110 to win a $100. However, with a betting exchange, you can easily find someone willing to take -102 or -106 for your bet instead of giving -110 to the sports book. Not legal in US but will probably be available online if internet betting becomes legal.
You can post your own money odds and actually become the book. If a bettor posts the best price on the board, why not get the best money odds for your bet while the actual point spread stays the same. A difference of opinion exists on all sporting events as you know. A betting exchange is not legal on US soil but is a popular format worldwide. Their revenue comes from a small commission on each bet and Nevada gaming commission should take notice. All of these betting formats are becoming part of a global sports betting market that forms a giant legal industry for bettors worldwide to reach that trillion dollar mark in total bets.