Most of the money bet Sunday will not be crisp hundreds, but credit card transactions.
Photo by Pepi Stojanovski on Unsplash
It's fun to bet on sports, but there's a reason why the folks who own the casinos get rich.
Greg Kajewski, Co-Founder at BettorEdge did an analysis on the AGA's prediction that there will be $7.61B bet on the Super Bowl.
"Before the game kicks off on Sunday," Kajewski said, "Sportsbooks will be big winners as they bring in an estimated $550 million in fees taken from the consumer’s winnings. That’s enough to buy every Super Bowl commercial spot NBC runs on Sunday."
That $550 million comes from the House's "vig" or "hold," which is the amount of money kept by the sportsbook before it pays out winnings. This is why it's important in sports betting for the sportsbook to get similar amounts of action on each side of the line – so it's not paying out more on one side than the vig being collected.
Generally, the more exotic the bet, the bigger the vig.
Our horse racing handicapper Chris Garrity has complained about high takeouts (vig) at horse tracks and recently lauded Sam Houston Race Park for not gouging bettors.
Also, when the sportsbooks generate $500 million in revenue, the next big winners will be the states, who are taxing the heck out of that money.
Other stats from the AGA research:
The 31.4 million expected bettors is up 35% from 2021.
18.2 million American adults will place traditional sports wagers online, at a retail sportsbook or with a bookie, up 78 percent from 2021.
18.5 million plan to bet casually with friends or as part of a pool or squares contest, up 23 percent from 2021.
12.9 million people plan to place a bet online this year, up 70 percent from 2021.
4.7 million people plan to place a bet in person at a sportsbook, up 231 percent from 2021.
76% of American bettors say it is important to bet through a legal operator, up 11 points from 2021.
2 RISK-Free Bets up to $2,000!
1st bet matched up to $1,500, 2nd bet matched up to $500.
Sign up here!
Bettors Insider is in the process of getting licensed in more states, but if you're in New York, New Jersey, Tennessee or Iowa, and you're not signed up with Caesars Sportsbook, what are you waiting for? The commercials with JB Smoove, Halle Berry and the Mannings alone are worth a sign-up. And there are all kinds of perks. You can sign-up here.
Fubo TV has lots of channels, tons of sports, a great price and a free trial. What could be better? Sign up for a FREE TRIAL of Fubo TV here. No hidden fees, Cancel anytime.