The sports betting landscape in the United States is far from the norm.
Making vast changes to gambling laws in most mature gambling markets is messy, complex and sure to rub someone up the wrong way. So not much changes.
In contrast the USA has a variety of regulatory frameworks. Which provide a wealth of data to compare different market conditions whilst still retaining a core familiarities between states.
One interesting piece of data is displayed below.
The graph below plots the annual gross gaming revenue per capita for each state (May 2022-May 2023) against the total hold percentage for the same period.
Interestingly, we can see a clear trend. As the overall hold or vig percentage at the state level reduces the gross revenue per capita increases.
This is some what counter intuitive. You would expect the states with a higher hold to generate a higher revenue from there customers.
What are the potential reason for this trend?
- Customers betting at higher holds churn at a faster rate reducing lifetime value.
- More customers in high hold states opt to bet at offshore sportsbooks.
Do you have any thoughts on the potential cause or implications of this trend? Comment your thoughts below.
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