“There’s little certainty right now, but a case can be made that sports betting, because of its popularity online, could explode post-pandemic,” Purdum said.Īs for potential revenue that legal operators could hope to win over from illegal operators, the size of the illegal market has been estimated to be between $50 billion and $200 billion in aggregate bets placed, according to estimates made by such groups as the American Gaming Association, Eilers & Krejcik Gaming, and H2 Gambling Capital.īut these figures only tell a partial story, as the size of the illegal market is not a perfect projection of the potential size of a legal wagering market. With little for consumers to wager on today beyond esports, virtual sports, horse racing, and “fringe” sports such as darts or table tennis, it stands to reason that sports wagering stands to come back strong once public health conditions allow it to return. Law enforcement can, of course, also help crack down on illegal operators, but states have the ability to foster market conditions that enable legal operators to naturally attract consumers.
The threat of the illegal market underscores the importance of keeping tax rates low enough to allow legal operators to win over market share from illegal bookmakers.