Sports Betting Is Evolving More Rapidly Than Expected
Digitalization has entered all areas of society, with sports betting certainly no exception. The global sports betting market remained to surge in popularity. In fact, it’s one of the fastest-growing areas in the world, offering enormous potential for both sportsbooks and bettors. With the digital revolution in full swing, the online sportsbook industry to abides undergo dynamic changes, expanding in established markets and forging its way into new ones.
Also, this meta-technology emerged in the digital world, has changed how we work, how we play, and the way we live. It’s also transformed how we bet on sports. The penetration of digital sports betting goes beyond laptops and desktops. Globally, 20% of sports betting now takes place on your own devices. By the end of 2019, this figure is projected by to upwards of 45%!
But this sort of revolution does not happen on its own. Nexuschain is leading the drive for new functional digital expertise into the sports betting market, which is needed to sustain its current rate of development. This online sportsbooks software provider has responded to the consumers’ demand for increased connectivity as bettors are seizing new opportunities made available by these advances.
Here, we’ll lay out the overall size of the global sports betting market, explore some projections for its future growth, and try to pin down the root causes of this rapid market expansion.
How Gigantic Is the Sports Betting Market?
It’s essential to perceive that the overall size of the sports betting market is hard to estimate due to regulations and record keeping are inconsistent. There is no definitive resource, from nation to nation, that researchers can solidly rely on. Records are too diverse to paint an entirely exact illustration
That fact, it doesn’t mean that there aren’t reliable appraises. Global sports betting is estimated to have a market capitalization of $250 billion. According to Statistica, a highly-reputable firm, licensed online sportsbooks (like the ones we review) account for upwards of $39.7 billion of this revenue. The rest of these sports bets are staked at venues like casinos, at horse tracks, or other global conduits.
The Fastest Growing Sports Betting Market: The United States
In 2009, the sports betting market was valued at $20 billion. By 2016, it was valued at $40 billion. With a present market capitalization of (conservatively) between $60–73 billion, the market has conservatively grown at a rate of $10 billion per year. If this pace continues, American sports betting will occupy an increasingly significant share of the world market.
According to a recent Statista survey, over 50% of US citizens admitted to placing a bet on a sporting event at least once in their life. Given the stigma that still hovers around sports betting in the US, it’s possible that some of those polled in the survey weren’t entirely forthcoming on whether they’d bet on sports.
The Biggest Sports Betting Market: APAC (Asia-Pacific)
With a community of more than 4 billion citizens, it’s of slightly surprising that the APAC region occupies the most vital percentage of market share in the sports betting industry. It’s estimated that residents falling in the APAC locality are responsible for 47% of the world’s sports wagers.
Asia-Pacific manages the sports betting market due to the presence of digital platforms, user adoption to online betting, and the presence of a sizeable market in several areas of APAC. Additionally, the rising demand for online games that involve money gambling contributes significantly to the sports betting industry.
How Much Will Sports Betting Markets Grow Elsewhere?
Sports betting presently accounts for upwards of 40% of global gambling revenue worldwide, which is more than any other section (inclusive of lotteries, casinos, poker, and other forms of gaming.). According to the recent forecast from market research firm Technavio, the CAGR (Compounded Annual Growth Rate) of the global Sports Betting Market is expected to rise at a significant CAGR of 8.62% during the period 2018–2022. Technavio’s market research analysts have predicted that the sports betting market volume will increase by almost USD 125 billion by 2022.
While all eyes are on the US and APAC regions, sports betting is still expanding in other areas of the world. Though growth may not seem as dynamic or impressive in Europe and Australia, it’s mainly due to a long history of sports betting in these regions. However, sports betting is still growing steadily in these areas.
At the same time, Africa and Latin America make up a large contingent of the global market, but not as much as APAC or the US. This is primarily linked to broader macroeconomic factors which affect GNP, and limited internet access.
What’s Driving This Increase?
The straightforward explanation is due to increased wealth and expansion in digital connectivity.
According to the sports betting market analysis research report, the growing popularity of online betting is one of the key trends driving the growth of the market. Virtual gaming is getting wider attention due to a rise in the number of users logging on an hourly basis. The primary audience for sports betting includes the age group of 16–23 years and the secondary audience (above 26 years of age).
Historically, Macau and Hong Kong (both within APAC) are two of the most outstanding sports betting revenue-generating regions in the world.
Economic prosperity throughout the rest of the region, however, provides accessible profit for leisure activities, such as sports betting. As real wages continue to grow in the APAC region as they are projected to more and more income stands to end up being placed on sporting events.
Furthermore, internet company providers in the APAC region report significantly increased breakthrough in the market. As a better internet connection allows people to consume the latest news and information in sporting. It’s more convenient to become a sports fan and sports bettor when you’re able to keep up with the latest in sports on a weekly, daily and even hourly basis.
According to Transparency Market Research, APAC forecasts to expand at a CAGR (Compounded Annual Growth Rate) of 12.9% from 2018–2024. Asia’s projected growth rate for its sports betting market outpaces any other region in the world.
Online Betting is Taking Igaming into a new level
Sports betting, on the other hand, has been around since the beginning of sports. Historically, Nevada has been doing it in a regulated way for decades, and online betting is a thread that ties the sporting world together worldwide. Sports betting is one of the most exciting and fastest growing ways to enjoy sports and other major events. Today, this hobby has recently seen a dramatic increase in popularity thanks mainly in part to the internet. Players are now able to research their picks much more effectively and are also able to place bets safely in the comfort of their home in a matter of minutes.
Sports betting could change customers’ engagement with online gaming companies, particularly if online betting spreads. Customers could make mobile bets on their casino accounts from anywhere in the world, and online gaming companies will likely expand their betting options now that gambling is legal for a wider audience.
The potential market would provide a boon to casinos and other land-based gaming interests both in direct revenue and ancillary benefits. This convenience and increased control should continue to help online sports revolutionize throughout the next few years.
