The events of 2020 have sent the world into a frenzy, affecting a variety of sectors. Given the effect, the coronavirus pandemic had on live sports, the year was particularly turbulent for the betting industry.
For more than a decade, the sports betting market has increased exponentially. As a matter of fact, the market was consistently experiencing phenomenal growth, both in net size and in the player base, even before Covid-19 happened. The global economy was estimated at about 45.8 billion dollars in 2017. By 2024, some analysts estimate that this number may grow by $95 billion in global online gambling bets. Plus, it is projected that the global demand for online gambling will rise by 11.5 percent annually until 2027.
With US states voting to legalize sports betting, DraftKings and FanDuel both reporting solid results, and thanks to a coronavirus-fueled quirk in the sports calendar, for the first time, bettors were able to wager on all four major team sports in the third quarter of the year: baseball, basketball, hockey, and football. Here are some of the major developments leading to the rapid growth of sports betting-
Following the landmark Supreme Court decision in 2018, the online sports betting market has changed dramatically, as every state now has the option to seek legalization. Two years later, as the relationship between sports leagues and the gambling industry changed forever, the rise of the emerging legal sports betting market also surpassed expectations.
In the month of March, the four U.S. states with legal online poker sites, New Jersey, Delaware, Nevada, and Pennsylvania, all posted record-high online gaming revenues. In particular, Nevada, the gambling hub of the world, registered more than a rise of 90% from the same month last year.
Currently, according to the American Gaming Association, 25 states and Washington, D.C., have passed laws legalizing sports betting to date, with Louisiana, Maryland, and South Dakota entering the club this election cycle after ballot measures were passed. A few top players, such as DraftKings, FanDuel, and William Hill and BetMGM, more known casino gaming operators, hold a substantial lead, but that has not stopped others. New Jersey currently has more than 15 operators ducking it out- from further clogging the already overcrowded sector. Operators are thus turning a blind eye to profit margins, funding these free-bet and odds-boosting initiatives in what could potentially be a vain attempt to grab a portion of the mobile gambling industry of multibillion dollars.
There is also a rising number of sports organizations involved in marketing and promotional efforts that have led to the sponsorship of sports teams around the world by more large betting firms. The growing commercialization of sporting events is therefore considered to be a key factor that is expected to have a positive effect on the growth of the market for online sports betting over the next five years.
The trend of collaborations with different leagues and teams around the country is expected to intensify as the legal infrastructure becomes more accommodating towards online gaming and sports betting in particular.
Unsurprisingly, the immense growth of esports during the pandemic also accelerated the creation of the betting market for esports. Most betting companies began searching for the best ways to do it instead of considering whether or not to deliver esports at all. B2B partnerships started to boom as a result. Sportsbooks have added more competitive esports activities to their portfolio in the process of substituting conventional sports and increasing the betting rate. They also had to secure data providers with wider coverage.
In order to keep up with today's competition, companies, especially when it comes to technology, need to have their finger on the pulse of change. Sports betting is one area that has completely welcomed new technology, however. Just 20 years ago most people were only able to position a sports bet on a respectable brick and mortar bookie but betting companies now deliver state-of-the-art software and an online presence.
In the sports betting world, the internet has created an explosion, with bettors being able to bet on their favorite matches and players from the comfort of their own home. Many internet bookies are now household names, drawing on the popularity of sports betting for most of their success.
While it is necessary to develop an advanced online and mobile product, leading bookmakers recognize that faith is the key to gaining a competitive advantage and maintaining a loyal customer base. Choosing a trustworthy bookmaker is important for punters, if not essential in today's world where misinformation is plentiful. That is why the largest players in the industry have also invested heavily in customer support technologies and the use of review platforms, it’s clear there’s more to technological innovation and trust than offering the best hardware.
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