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Sports betting operators are set to rake in record revenue in 2022 as legalization spreads across the country. Over $1 billion was wagered in Arizona in the first three months of legal gambling, while New York bettors wagered $603 million in just nine days of legalized sports betting.

While the sector’s financial results were drawn down by significant amounts of spending on advertising, the long-term growth of the industry is still intact. Spending on sports betting is forecast to remain hot and more states are set to vote on legalization via mid-term elections coming up later this year. With a record number of consumers already using sportsbooks apps, 2022 is set to be another strong year of growth for the industry.

Related ETF: Roundhill Sports Betting & iGaming ETF (BETZ)

Sports Betting Legalization Paying Off for Major Markets

The meteoric rise of sport betting continues to pick up steam as key markets have recently legalized online sportsbooks.

In just the first three months of legal sports betting, Arizona bettors have already wagered $1.2 billion, making the state a top ten market nationally. Arizona is likely to remain a top market as notes the state raked in the largest amount of revenue in any state’s first month of legal wagering.

In November alone, Arizona sportsbooks accepted more than $466 million, nearly $200 million more than their debut month. Further, $3.2 million was contributed to the state’s general fund, highlighting the fact state governments can use revenue from sports betting to pay for things like education, health care or public safety.

Meanwhile, the launch of mobile sports betting in New York quickly dethroned Arizona as the state with the largest handle in their debut month – in just nine days. According to the New York Post, NY bettors placed a record-shattering $603 million in bets in just over a week.

That figure even surprised some of the markets most bullish projections. analyst Mike Mazzeo writes that NY betting volume is “outstripping even the most optimistic projections so far.” While some of the success can be attributed to heavy marketing strategies by the state’s top sportsbooks, an early look at their revenues shows some serious promise for, presumably, the country’s number one market.

Caesar’s Sportsbook led the way with $22.7 million in gross revenues thus far, while FanDuel and DraftKings came in at $14.1 million and $10.9 million in revenue, respectively.

Bloomberg notes New York State expects to bring in roughly $249 million in revenue from sports betting in fiscal year 2022, and over $357 million in in fiscal year 2023.

Further Legalization Looks Promising as Investment Points Toward Long-Term Growth

Legal sports betting has now spread to 30 states across the country, up from just 19 states a year prior. Over 100 million Americans are now able to place bets in person or through sportsbook applications on their mobile phones, and that number will continue to rise in 2022.

SportsHandle reports that Massachusetts, North Carolina, Georgia and California are all likely candidates for passing sports betting legislation in 2022. Florida is another key state that…

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