Florida's Legalization of Online Sports Betting May Boost Sports Data Firms

Florida took the crucial step of legalizing and launching mobile sports betting in 2021, ushering in a wave of excitement and potential economic opportunities. However, this new venture was short-lived, as legal disputes emerged surrounding the gaming compact between the state and the Seminole Tribe. After two years of uncertainty, the US Supreme Court has now provided a decision that clears the way for online sports betting in the state.

One of the key beneficiaries of this decision could be sports data companies like Sportradar and Genius Sports. Ryan Sigdahl, an analyst for Craig-Hallum Capital Group, a reputable research, trading, and investment banking firm, has pointed out that the regulated sports betting market in Florida may open doors for these companies.

Sigdahl has suggested that the Seminole Tribe, holding exclusive rights over mobile betting, will likely require reliable sports data providers. This need extends to solutions and technology, making Sportradar and Genius Sports well-suited for the role. As mobile betting gains popularity in Florida, these companies could play a pivotal role in supplying much-needed data.

Florida's significance in the sports betting market cannot be overstated. With approximately 7% of the country's population, it is a major player in the industry. Furthermore, the state boasts a passionate sports fan base, being home to three NFL teams, two NBA teams, and two MLB teams.

The expansion of legal sports betting in the United States began with the 2018 repeal of the Professional and Amateur Sports Protection Act by the US Supreme Court. Currently, nearly 40 US states offer some form of legal sports betting. While five states lack legislation on sports betting, seven states have halted legislation, making Florida's decision all the more significant for the industry.