What is the Scope of Sports Betting in 2020?

What is the Scope of Sports Betting in 2020 - 1

Sports betting industry has taken the world by storm with its  increased popularity in various parts of the world. It has emerged as a highly lucrative multi-billion dollar industry since past some years. Though not welcomed smilingly by many state legislatures, sports betting has still proved itself as a winner in terms of popularity among bettors. 

  • Eclipse of MegaBet, an established sports bookmaker of UK by New jersey in terms of revenue perfectly proves the popularity of sports betting and its rapidly increasing count of audiences. 
  • With each passing year since its commencement, sports betting is continually witnessing an upward moving graph of users. It’s a highly sizable industry and is gaining more popularity among people of different age groups and belonging to different geographic locations. 
  • As per the estimation of legal sports report [3] in October 2019, more than $12 billion have been put down by Americans in the legal sports betting starting from June 2018 till this October and from this figure, nearly $103 million is kept by states and $858 million is directly added to the profit bag of sports books. 
  • Witnessing such revenue figures proves sports betting a more promising industry and enhances the expectation of a higher revenue generation in 2020.

Recent Legalizations in Sports Betting Industry

United States(US):-

  • The striking of the 1992 federal law[1] by US Supreme Court due to which many states were prohibited from authorizing sports betting has brought a sudden upsurge of new opportunities in the betting industry.  
  • Without this federal framework in place, many of the states visualize this as a lucrative opportunity to enhance the growth of the sports betting industry and redefine their revenue generation model. 
  • New Jersey and Delaware were the initial ones for reacting to this amazing opportunity and generated major revenues from it i.e. nearly $385 million in a month only in New Jersey.
  • Sports betting industry is currently regulated and legalized in 13 states as per legal sports report [2] and more states will shortly follow them as their respective state legislatures review the bills. 
  • The states with legalized sports betting industry include Delaware, Mississippi, Indiana, West Virginia, New Jersey, Nevada, Lowa, Arkansas, New York, Rhode Island, Pennsylvania, etc. 
  • These legalizations will depict interesting sportsbook developments in the upcoming time.

US Revenue Projection - Gammastack

  • The striking of the 1992 federal law[1] by US Supreme Court due to which many states were prohibited from authorizing sports betting has brought a sudden upsurge of new opportunities in the betting industry.  
  • Without this federal framework in place, many of the states visualize this as a lucrative opportunity to enhance the growth of the sports betting industry and redefine their revenue generation model. 
  • New Jersey and Delaware were the initial ones for reacting to this amazing opportunity and generated major revenues from it i.e. nearly $385 million in a month only in New Jersey.
  • Sports betting industry is currently regulated and legalized in 13 states as per legal sports report [2] and more states will shortly follow them as their respective state legislatures review the bills. 
  • The states with legalized sports betting industry include Delaware, Mississippi, Indiana, West Virginia, New Jersey, Nevada, Lowa, Arkansas, New York, Rhode Island, Pennsylvania, etc. 
  • These legalizations will depict interesting sportsbook developments in the upcoming time.

United Kingdom(UK):-

  • In the international gaming community, the sports betting industry of The United Kingdom possesses the most developed laws. One of the oldest sportsbooks of the world commenced in the UK.
  • Countries like the US are now paving their ways towards sports betting, conversely in the United Kingdom, it has become legal since 1960.  

  • New binding rules have been published by the UK Gambling Commission for its LCCP(License Conditions and Codes of Practice) agreements for determining the regulatory norms that need to be met by the iGaming operator for issuance of license.
  • The UKGC has following plans with the latest changes:-

-Increase in standards for ADR
-Improvement in standards of transparency
-Better measures planned for customer protection
-Contribution of more voluntary funds are expected by the commission for combating the gambling harm. 

Germany:-

  • New land-based and remote sports betting licenses are planned to be granted in Germany from January 2020. 
  • The Darmstadt Regional Council, Hesse’s competent gambling licensing authority has published the minimum requirements which have to be fulfilled for licensing. 
  • The requirements catalogue include documents, proofs and declarations for covering the following areas:-

-Applicant’s as well as its representative’s information
-IT security
-Payment Processing
-Responsible Gambling
-Minors Protection

The procedure of licensing will be starting in 2020. Submissions of applications may be done earlier and their processing will be done on the basis of first come, first served. But the review process by authority will not be started before 2 January 2020.

Shifting of Sports Betting Industry to Higher Gear in 2020

The legalizations in sports betting industry will definitely shift this industry to higher levels of improvisations.

  • The patent for implementing real-time placing of bets with greater involvement of online sites and mobile devices is already planned by some more companies which is expected to be launched in 2020. 
  • As per the research done by industry trade publication in past years, the US was expected to possess the highly mature online market of sports betting which appeared to be true. 
  • In the upcoming months of 2020, the market of US is expected to be expanded immensely and there are expected changes such as the way of bet placement, most popular games and events for betting and many more.

Various partnerships among well-known companies belonging to sports betting industry contribute to the enhancement of the current betting model by making it more secure and robust. Many more such effective partnerships are expected in 2020 that will lead to a major boost to the overall revenue of the industry.

Demographics of Sports Betting

As per the experts, young bettors generally embrace the acṭivity of sports betting just for fun and also because they find it quite comfortable to bet online but slowly they reach an age when they visualize it as a mainstream.

  • Sports betting seems to be more appealing to a demographic that is skewed more towards the group of younger males. 
  • As per the survey of an American Gaming Association [4], 69% of the main sports bettors are found to be of men who generally place bets online or through bookies or through casinos in the past 12 months and the survey found that 45% of the main bettors belonged to age group of 23-34. 
  • The number of core sports bettors reported by the association is nearly 32.8 million and the number of casual bettors that are the people who had bet with friends, family, through a fantasy league or through a pool. 
  • The survey however found 61.1% that is nearly 143.1 million Americans were lacking interest in the sports betting. This number is expected to witness a huge acceleration in the upcoming time of 2020.

Popular Sports Involved

When we talk about the popular sports that are involved in betting then we have visualized that all of the sports are not getting equal benefits as some of them have more counṭ of enthusiasts as compared to others.

  • As per the research and study by the industry experts, NFL Football is considered as one of the biggest and most popular drivers of this industry as it appears to be one such sport that perfectly suits to prop as well as in-game bets. 
  • Historically, even before the official legalization of betting in the US, Football has driven great betting intent. 
  • Followed by Football, Basketball, Baseball, Soccer and Hockey appear as the betting leaders. 
  • Golf is another popular sport that is expected to gain more popularity in upcoming time. 
  • Basketball is also appealing to the rapidly enhancing live betting category. 
  • Mobile betting is also a major popular category or betting method which is also growing expeditiously as its not limited to a particular sport and has huge count of users. 
  • In 2020, betting methods and formats will be witnessed as the actual growth parameters rather than sports.

Expected Critical Uncertainties for Online Sports Betting Industry in 2020

Similar to the legalization efforts, the current state of sports betting is fluid and is expected to change quickly with the unfolding of some critical uncertainties that are expected in 2020:-

  • Permit of Mobile Wagering
    The fight for consumers as well as market share is expected to get more competitive depending upon the decisions of states to permit mobile wagering. The permit for mobile wagering will definitely bring more entrants in the sports betting industry as everyone likes the convenience of betting without spending much on physical assets. Also, mobile wagering also acts as an additional revenue stream for the sportsbooks. Thus the legalization of mobile wagering significantly contributes in bringing more entrants to the betting marketplace.
  • Impact of Sponsorship
    A new category of sponsorship is expected to see a massive growth with the widespread legalization. The uncertain aspect is the possible negative impact that sportsbooks can have on the sponsorship deals that are already existing as some of the companies will not agree to stay in association with entities of sports gambling. Thus teams as well as leagues will visualize a net profit in new sponsorship. What will be worth watching is the way opted by teams for activating sportsbooks and how they manage to retain their existing sponsors. If the existing sponsors react strongly and more than what is anticipated, then teams as well as leagues will have to give a second thought on their relations with sportsbooks.
  • Number of States
    Potential size of the sports betting market will be predicted through the count of states that legalize sports betting in the upcoming 5 years. As per the prediction from experts, nearly half of the states will have legalized sports betting which will in turn lead to a noticeable revenue for leagues as well as sportsbooks. Increasing legalization will definitely increase the count of potential bettors and as people will start reaching their comfort zones, the sports betting market will grow exponentially. The less populous states like Wyoming will be less impacted as compared to more populated ones like Texas. States with sports franchises likely possess the most for losing as well as gaining with legalization. Also, league level deals are expected to get affected by count of markets in which sportsbooks are expected to get activated along with monetizing the investment. populated ones like Texas. States with sports franchises likely possess the most for losing as well as gaining with legalization. Also, league level deals are expected to get affected by count of markets in which sportsbooks are expected to get activated along with monetizing the investment.

Future Aspects of Sports Betting Industry

  • Global Market of Sports Betting will Get Energized from Legalization in US
    In past years, approximately 97% out of total 4.5 billion bets were placed illegally on Super Bowl. This scenario is not new as the investigations by Congress and The New York Times perfectly show the operating way of bookmarking sites under legal radar in the US. Such scenarios are likely not to be witnessed in 2020 with the legalization of sports betting in the US which is expected to bring a sudden upsurge of growth for the bookmakers.
  • Direct Profit to Sports Leagues
    Most of the pro leagues are in favor of online sports betting and are thus starting to find out ways for enhancing their profits. The league officials already got partnered with the data companies as well as other firms related to gambling for creating share profit opportunities. Thus the sports leagues will depict direct profits which will, in turn, enhance their overall revenue generation model.
  • Online Real-time Betting through Smart Phones
    The increasing number of mobile users is paving the way for the mobile wagering that enables online real time betting through smartphones while maintaining their convenience level as well. Thus the mobile wagering is expected to witness a huge

  • Increase in Competition Among High-tech Companies
    Well-recognized media as well as tech companies like Microsoft are paying deep consideration for following the laws of sports wagering. The businesses with billions of revenue generated from the digital platforms are jumping into the lucrative sports betting industry so you can easily visualize the level of competition that is awaiting for other companies. They will be competing with the international sportsbook operators and are expected to create an all new landscape of competition and market share.
  • Scope for Existing and New Operators
    In the upcoming year 2020, many of the existing as well as new operators will most likely witness a remarkable success and great count of audiences. With the recent and the expected legalizations in the sports betting industry, the doors of new opportunities will open for many of the new operators across the globe. The increasing popularity and improvisations in industry trends will also seem to be benefitting for the existing sports betting operators as they will have more count of users and an enhanced revenue.

Sports Betting Industry is Expected to Get Self-Regulatory in 2020

The overturning of PASPA by Supreme Court is anticipated by the stakeholders of the betting industry including fans, sportsbooks as well as leagues. Now the US is standing at the verge of making a boom to the sports betting market and it’s exciting to watch the potential changes in industry trends. The upcoming three years will determine whether the US is going to walk on the footprints of the UK which is having more than 50 years of legal sports wagering experience.How and where sports betting is permitted are the major questions that will predict the future of this industry. A long list of questions are popping up in the minds of stakeholders:-

  • What will be the effect on my business and industry?
  • How should I use this potential opportunity for capitalizing?
  • What are the potential risks that are coming with the evolution of the market?

US Sports Betting Revenue Forecast

How to Accelerate the Success of your Sports Betting Business in 2020?

Sports betting industry is expected to see a tremendous level of growth in 2020 and thus it will be a highly beneficial year for entrepreneurs to invest in this industry and the existing businesses to expand their business model. You just have to stay quite mindful for enhancing your revenue generation by opting for a ultra-modern sports betting software developed by employing cutting-edge and industry-specific technology. Here are some
crucial aspects that need to be considered for getting a state-of-the-art sports betting software:-

  • Market Research
  • Decide the Location of Operation
  • Analysis of Target Audience
  • Determine the Scope in the Particular Location
  • Prepare your Requirement Sheet
  • Search for a Reliable Sports Betting Software Provider
  • Choose a Trusted Sports Betting Software Development Company
  • Tell your Exact Requirements to the Team
  • Get your Sports Betting Software Live!

GammaStack is one such trusted sports betting software development company that possess an unparalleled breadth of expertise and experience across iGaming industry. We are well-positioned for assisting our clients to achieve success in this industry with a sports betting software, integrated with multiple useful features including:-

  • Multiple Sports Covered
  • Multiple Payment Gateways
  • Unlimited Betting Markets
  • Live Score Updates
  • Agent System
  • Multilingual Support and many more

Sources

https://edition.cnn.com/2018/05/14/politics/sports-betting-ncaa-supreme-court/index.html

https://www.legalsportsreport.com/sportsbetting-bill-tracker/

https://www.legalsportsreport.com/sports-betting/revenue/


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