The global sports betting market is likely to witness robust growth in the years to come owing to digital revolution in the sports industry. Consumers can have easy access to several online betting platforms due to high internet penetration and rapid development of digital platforms. Digital platforms allow consumers to place bets from any location of the world. Rising consumer disposable income, increasing trust on electronic payment method for betting, and high adoption of internet based devices, such as smartphones, are anticipated to stimulate market growth in the years to come. Increasing preferences for gambling due to chances to earn a high return with low investment is likely to have a positive impact on market growth.
Technological advancements are expected to fuel market growth in the coming years. Companies are adopting advanced technologies to design games with features, such as mobile gaming, 3D graphics, and live dealers. Introduction of artificial intelligence (AI) in online gambling is also likely to support market growth in the coming years. The technology is anticipated to offer immense and true gambling experience virtually.
Increasing trend of virtual sports betting is likely to drive the market in the coming years. Numerous bookmakers all over the world are choosing this betting option due to growing popularity of online and sports video games, including FIFA and Football Manager. This platform operates on computer algorithms to generate results and is designed to display high quality videos of matches or sport events. Virtual betting is gaining traction among players as it can be played at all hours of the day. Rising acceptance of e-sports wagering or online gambling is a key driving factor in the market.
Moreover, use of bitcoin for bookmaking is likely to emerge as an important trend in the market. Increasing benefits of cryptocurrency than regular currency is likely to boost the demand for bitcoin gambling in the coming years. For instance, ZenSports, a decentralized peer-to-peer sports betting marketplace, launched a cryptocurrency Token Sale in December 2018 to expand its existing customer base and revenue. The company’s mobile app allows anyone to create and accept bets with anyone else in the world without a centralized bookmaker. In addition, bettors can fund their accounts, pay fees, pay bets, and withdraw their winning amount within the app in the form of fiat or cryptocurrencies.
However, processing of customer payments over financial institutions is a key issue faced by the players. In addition, growing cases, such as inability of the bettors to return currency to financial institutions, can challenge the market in coming years.
Sports betting includes sports, such as football, baseball, basketball, tennis, hockey, boxing, and horse racing. In recent years, the sport wagering has been extended to non-athletic events, such as political elections, reality shows contests, and beauty contests. The market also includes casinos, lotteries, and poker. The market is difficult to estimate as it is regulated differently across various locations around the world.
North America is considered to be the largest market in terms of revenue owing to rising popularity of gambling. In addition, increasing efforts to legalize these types of e-sports is expected to boost regional market growth in coming years. In 2018, the U.S. Supreme Court overturned the federal ban known as Professional and Amateur Sports Protection Act (PASPA). This is likely to stimulate the growth of sports wagering in several states of the U.S. New York is likely to emerge highly lucrative in the coming years. Additionally, other states, such as Florida, California, and Texas, are anticipated to exhibit robust growth. Rising mobile betting and use of debit and credit cards for transaction are the key trends in the region. However, presence of high tax rates is likely to limit market growth to an extent in the U.S.
Asia Pacific is projected to witness substantial growth in the years to come due to improving economic conditions. Macau and Hong Kong are the prominent sports betting revenue-generating regions.
Some of the key players operating in the sports betting market are William Hill, 888 Holdings, Paddy Power Betfair, Kindred Group, and GVC Holdings.
Research Support Specialist, USA