Venture Capital Firms Zoom In On Sports Betting
More and more venture capital firms are starting to show a definite interest in the legalised US sports betting market. The 2019 strike-down of the federal ban on sports betting by the US Supreme Court has literally opened up a world of new business opportunities for a variety of sectors across the globe.
Operators, data analysts, investors, major sports leagues; you name the industry, and it’s bound to in some way either be connected to the sports betting industry already, or interested to do so in future. The industry’s success up until now, albeit still in its infant’s shoes in terms of full regulation, paints the promise of a rosy future for many.
8 Down – 24 More To Follow
To date, a total of 8 US states have legalised sports betting within their territories. These are New Jersey, Nevada, Delaware, New Mexico, Pennsylvania, West Virginia, Mississippi and Rhode Island. At least 24 more have confirmed that regulatory processes are currently at an advanced stage within their own ranks.
New Jersey, in particular, has achieved massive levels of success in the sports betting industry. The state is quickly closing in on Nevada in terms of revenue, and has confirmed that the bulk of its revenue; as much as 80%; is generated by mobile sources.
New York is another state has been making headlines of late due to its push for the legalisation of mobile sports betting. The expectation is that once this has been passed successfully, the Big Apple can expect to see a boom second to no other.
Getting In Early
Considering all of the above and a definite promise of much more to come, it’s no surprise that venture capital firms are swarming towards the industry in their drones, eager to get in early whilst it’s still reasonably affordable to do so, with the hope of seeing massive returns later on when the industry has grown to the point of no allowing no new investors in on any of the action unless a King’s ransom is offered as payment.
Data services are vital to the sports betting industry. Operators like William Hill, DraftKings and FanDuel have bigger fish to fry than to analyse trillions of reams of data in the interest of its own books and bettors. These operators rely heavily on third party service providers to supply data services; something that the industry cannot do without. Capital venture companies have shown a lot of interest in funding the companies that provide data services.
Technology is another definite area of interest. Sports betting operators have to ensure that their tech-systems are up to date and fully in line with the latest regulations. Providing hardware and software to achieve this goal is deemed to be an area of business that holds a lot of promise for returns.