Sports betting could soon become a $19 billion per year business in the US, but faces 5 major challenges

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College football.

• There's been a lot of enthusiasm, and skepticism, around sports betting since the US Supreme Court lifted the federal ban on the activity last year.
• Consulting firm Activate breaks down the obstacles, and opportunities, facing the sports betting industry, in a presentation shared with Business Insider.
• Mobile gaming across states will be key for sports betting to reach its full potential, the presentation says.
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There's been a lot of enthusiasm, and skepticism, around sports betting since the US Supreme Court lifted the federal ban last year.

Activate, a consulting firm focused on next-generation strategies in sports, media, technology, and other sectors, forecasts that sports betting could drive nearly $150 billion in wagers annually in the US by 2023, with more states moving toward legalization.

That's on top of the opportunity for media and technology companies like FanDuel, Fox, and Barstool Sports that have been devising new ways to make money off sports betters since the regulatory ruling.

Activate projects that sports betting could generate $19 billion in revenue by 2023 from advertising, sponsorships, media rights, and data licensing tied to sports gambling, as well as revenue that may come from partnering with or running sportsbooks.

But there are five big hurdles still standing in the way:

• Mobile gaming needs to cross states lines, with the support of federal regulation
• Technology needs to improve to enable reliable betting in real time
• Tax rates need to be low enough to incentivize sportsbook operators to get in the game
• Global standards for sports gambling need to be established
• Sports data needs to be accurate and officially sanctioned

The consulting firm broke down these challenges, and the opportunities in sport betting, in a presentation shared with Business Insider: