An Insight of Present, Past and Future of Global Sports Betting Market
The continual surge in popularity of the global market of sports betting has contributed to making it one of the fastest developing sectors. The digitalisation has been witnessing its full swing, thereby making the sports betting industry visualize the dynamic changes and pave ways into newer and broader markets.
It’s a tricky task to paint the overall picture of the sports betting market as the industry has undergone an epic change of growth in the past few decades. Whether we talk about the expansion of the sports betting world with the addition of new streams such as esports or enhancement in the core betting industry, all we could witness is tremendous growth!
Sports Betting Market
According to a report, the sports betting industry is expected to reach $8 billion by 2025 and thus expected to drive a lot of people in the gambling industry. NYC itself has legalized betting on sports 50 states in the past few years. And some states are planning to legalize sports betting. In the US, 9 states have the pending launch date of the law for lifting the ban on sports betting, and the legislation of 24 states is still unresolved. But the United States of America, UK and Australia remains on the sidelines to mass contribute in the revenue growth of the sports betting industry every year.
Before we begin, let’s check out the industry stats:
- Sports betting platforms Fanduel and Draftsking hold a total of 83% share in sports betting in New Jersey.
- 9 states may look to legalize sports betting in 2020 including Connecticut, Illinois, Louisiana, Michigan, Massachusetts and 4 other states.
- In January 2020, the total revenue/hold of Nevada was $20.2 mn with a hold percentage of 6.1%
- Americans gamble more than $150 billion illegally on sports in a year, according to estimates from the American Gaming, reported CNBC.
China is the country that invented gambling and has been gambling since ancient times and has developed many games to perform gambling. Today, China’s sportsbooks are usually done by lottery as the Chinese government doesn’t consider lotteries as gambling. Hong Kong and Macau are the two-place where gambling can be done. Although the govt has banned many sites, the bettors know, how and from where to place bets.
Talking about the history of sports betting in the USA in the early 19th century, horses were the major attention of gamblers during that time. Horses played a major role in developing the sports betting in the USA. Initially, it was considered as a pure form of entertainment to the people of states. But the 20th century put obstacles in the sports betting industry as the market has grown at a tremendous rate.
The 1920s are referred to as the “Golden Era of Sports” with football and basketball becoming popular for sports betting options among the people. Football pool cards cam into highlight during the great depression as it was the only way of easy and quick money. Sports Betting was never on the boom until the 1970s, when the ruling party lowered the tax on sports, bet that bookmakers are allowed to pay. After this sports betting grew at a rapid rate and to stop this government then find ways to restrict the sports betting and find legal ways to perform betting on sports.
Future of sports betting market
The future of the sports betting industry is majorly driven by the digital revolution! The proliferation of online world and the investments of entrepreneurs in the sports betting software has made it easier for people to bet in a hassle-free way. The entrepreneurs always seek feature-enriched sports betting software that can drive a large count of users while elevating the revenue rate of their businesses.
In 2009, the value of sports betting was found to be $20 billion, by 2016, it became $40 billion and visualizing the present scenario of $60-73 billion, the growth rate of the market is approximately at the rate of $10 billion yearly. With the ongoing trend, the expected market size of global sports betting is expected to be USD 125.18 billion in 2019-2023. As per a recent survey, it has been found that over 50% of US citizens accepted to place a bet on the different sports events at least once in a lifetime.
Visualizing such a great hike in the sports betting world, the most common question that revolves around our minds is the factor that is driving such a huge increase. The reason behind this increase is tremendous wealth and deep touch with the digital world. As entrepreneurs are getting wealthier, they plan to double up their investments and the sports betting industry is one such lucrative industry that is enticing more and more count of investors.
Though US and APAC regions have always caught the eyes of the world in terms of sports betting, it’s growing wisely in other regions as well. Regions like Australia, Africa, Latin America and Europe are also gradually moving towards this industry.
After understanding the growth pace of sports betting industry in different regions and the revenue growth around past decades, let’s have a glance at the most popular sports and leagues that catch the significant betting volume:-
- Among sports, Football possesses the highest betting volume which is followed by American Football.
- Among leagues, MLB, NBA and NHL receive a great level of betting volume.
Sports betting has quadrupled since the introduction of mobile gambling and low data rates. The advancement in the AI, machine learning, fast and secure payment modes has overall resulted in the tremendous growth of the sports betting sector. With the increasing curiosity among with the people to make more and more money has also resulted in the hike in the sports betting market. And with the availability of fast internet speed and low data rates has added the icing on the cake. And here are some sports betting product that is recently launched in the industry to attract a huge number of people.
With the advancement in machine learning, micro betting comes in. The term is used for betting on short events that are easy to follow up.
Peer-to-peer betting can definitely be the new era of sports betting as it won’t be having any bookie to set the odds. In peer-to-peer betting, the bettor will be the giver or taker. The old traditional betting will be replaced with P2P betting soon, as traditional bookies stack odds that are favourable to them thus not letting users get the most benefit.
Where betting requires more some betting skills lottery is just based on luck. And so many people today are enjoying lottery games as it doesn’t require any prior knowledge to know it. The odds of the lottery are typically tens of millions and that’s why people say I want to win a lottery because even the probability of winning a lottery is less but there is a higher payout that person receives.
Esports betting is on the boom since the pandemic and no doubt there has been tremendous growth in the esports industry in this pandemic. Experts have seen the sudden shutting down of the traditional casinos and lotteries and this, in turn, has resulted in the sudden surge of esports betting. And not just the esports betting, people today are betting on almost everything possible. Here are some other forms people are planning to place bets on:
- Weather Betting
- Betting on Political Parties and Results
- Betting on TV Actors and many others.
Competitive Gaming comes as a part of esports gaming where professionals play games. Both professionals and amateurs play competitive games and win a huge amount of money in the competitions. Esports contribute a major part in competitive gaming thus revolutionizing the esports industry.
Here are some of the sports betting verticals startups and entrepreneurs should not miss remaining in the fast-moving world of sports betting
Content & Engagement
This was the quick insight into the present, past and future of the global sports betting market. Looking at some of the latest trends in the sports betting industry that will surrey rule the world in the coming years.
Sports betting has existed for years and will continue to grow in recent years. We, at GammaStack, has helped entrepreneurs and well-established businesses to understand the importance of sports betting and why sports betting business is a perfect idea to start a business. With our data and analytics, we have helped them in understanding how sports betting industry will proliferate in the future and what are their advantages.
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