In the US, two huge trends have emerged over recent years. The 1st, online sports betting being legalized in over 30 states, and the 2nd, the rise in online casino gaming, which has seen a slower uptake across the US.
These trends have swept the country on such a scale that 39.2 million Americans have placed a sports bet in the last 12 months (American Gambling Association). People have done this using different sportsbooks, which can be seen on gamble-usa.com. Additionally, America’s casinos and gambling apps have started pulling in crazy amounts of money, with 2022 alone seeing a total of $54.93 billion in revenue come from these avenues.
So, with the US gambling boom in full swing, you would think that most gambling operators would be experiencing major success, right? Wrong. The truth is that so many operators have struggled to truly make it in the US, with some of them closing within a matter of months.
Why Gambling Operators Struggle for Success in the US
If you’re racking your brain trying to make sense of that, you’re not alone. After all, you would think that being a gambling operator in the US would mean non-stop revenue. However, this simply isn’t the case.
🚨 Unibet closed operations in the US to boost its profits
🚨 FuboTV shut down due to lack of subscribers
🚨 MaximBet ceased operations because of rising costs
Even big names like bet365 (one of the most popular sports betting platforms in the world) have struggled to make it in America. In the case of bet365, the company has so far been unable to attract a high number of American users and is only available in seven US states, which hasn’t helped bet365 in terms of growth.
So, why do so many gambling operators struggle to break the American market? Here are some of the main reasons.
The Dominance of DraftKings and FanDuel
The number one reason why countless sportsbooks and casinos have failed in the US is because of DraftKings and FanDuel. These two companies are the biggest betting operators in the US and have 39.3% (FanDuel) and 34.1% (DraftKings) market shares, which makes it extremely difficult for new competitors, such as Unibet and bet365, to get a hold in the market. Simply put, the brand recognition of FanDuel and DraftKings is too strong, which is why most Americans aren’t willing to make the switch.
Gambling Legalisation
Another major problem with the US gambling market is legalisation. Online gambling (despite being extremely popular) is still illegal in many US states, such as:
📍Alabama
📍Oklahoma
In terms of overall reach, this makes life difficult for gambling operators in the US, especially new ones who don’t have a big market share to begin with.
Conclusion
Moving into the future, it’s highly likely that gambling operators will struggle to gain market share in the US. Gambling legalization is still a major problem in some states and FanDuel and DraftKings are going from strength to strength, with FanDuel recently joining the New York Stock Exchange. This isn’t good news for other gambling operators, as it seems like these two gambling giants will dominate for decades to come.
