Rapid Review of 2022: Merger Trends Dominate Headlines in the Sports Betting Business Sector
Amidst the tumultuous global economic conditions in 2022, marked by high inflation rates and the threat of recession, the US sports betting industry demonstrated remarkable resilience and significant growth. This expansion and digitalization phase was driven by legalization, mobile adoption, and technological integration, allowing the industry to benefit from shifting consumer habits and governmental support for regulated gambling revenues.
One of the key growth drivers was the legalization and expansion of sports betting in multiple US states. By mid-2025, 38 states plus Washington D.C. had legalized sports betting, with mobile betting accounting for over 90% of wagers in mature markets. This shift towards digital convenience accelerated during and after the pandemic's economic disruptions.
A study analyzing legalization impacts showed that online sports gambling spending increased by 369% after states legalized sports betting, correlating with a rise in irresponsible gambling behaviors. Despite these concerns, the industry continued to thrive, with tax revenues from regulated betting increasing significantly.
The economic environment also accelerated digital transformation and integration of technologies in the sports betting sector. Innovations such as mobile apps, live/in-play betting, and AI-driven platforms supported industry growth amid economic uncertainties and shifts in consumer leisure spending.
Notable events in 2022 included the launch of Bet365 in Colorado, providing insight into the company's US plans, and the rebranding of FanDuel's TVG to FanDuel TV. However, the year also saw consolidation across the industry, with several companies shutting down operations, including TwinSpires, Fubo Sportsbook, and MaximBet.
The three leaders in the US sports betting market - FanDuel, DraftKings, and BetMGM - maintained a stranglehold on the market with a combined US share upward of 80%. DraftKings appeared on the verge of securing a lucrative deal for exclusivity of ESPN's sports betting branding rights, but further talks were complicated by the return of Bob Iger as CEO of The Walt Disney Co., the parent company of ESPN.
Looking forward, Fanatics is expected to enter the sports betting market next year, aiming to be operational in 15 to 20 states by the start of the 2023 football season. The industry's agility and adaptability, combined with growing consumer interest and governmental support, promise a continued upward trajectory for the US sports betting industry.
- The US sports betting industry's growth in 2022 was largely propelled by the legalization of sports betting in multiple states, such as Colorado, where Bet365 entered the market.
- The digital shift in sports betting, facilitated by mobile apps, live/in-play betting, and AI-driven platforms, drove over 90% of wagers in mature markets by mid-2025.
- Despite concerns about increased irresponsible gambling behaviors subsequent to legalization, the industry generated substantial tax revenues from regulated betting, benefiting from a supportive financial climate.
- In the ever-evolving sports betting business landscape, consolidation occurred in 2022 with companies like TwinSpires, Fubo Sportsbook, and MaximBet ceasing operations, while industry heavyweights like FanDuel, DraftKings, and BetMGM maintained their dominance.
- With growing consumer interest, governmental support, and the imminent entry of new players like Fanatics, the US sports betting industry is poised for continued growth and success, targeting operational status in 15 to 20 states by the 2023 football season.
