The evolving landscape of the sports betting industry

Sports betting industry has taken the gaming industry by storm. It is one of the fastest growing industries into the gaming sector globally and has changed the overall landscape of the gambling industry. Over the recent years it has emerged into a very lucrative multi million dollar industry and the market for it is estimated to grow by USD 144.44 billion by 2024. The momentum for the sports betting industry will witness a rapid acceleration due to constant increase in popularity, user base and technological advancements.

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-

The Growth of Online Betting in Market Share and Revenue

If recent estimates are to be believed, then the online betting industry might come out of the pandemic as one of the most lucrative businesses in the world. The business of betting is expected to flourish with an estimated market growth of $93 billion by 2023. This is quite a monumental jump, especially when you consider the betting industry’s worth today, which is $67 billion.

This colossal leap can be attributed to two key trends. First and foremost, almost everything today is being done online. With 5.2 billion active mobile users around the world, it is only natural for the online betting industry to boom the way it has. Another key trend that has influenced its growth is the loosening of regulations that once restricted online betting. Many states across the US, that once approached online betting with cynicism, are now lifting restrictions that impeded its growth.

Ever since the Supreme Court’s landmark decision in 2018, the online betting industry has generated over $4.1 billion in revenue. Furthermore, over $571 million have been generated through taxes and jurisdiction revenue. The industry has also seen massive investments pouring in from major investors.

Today, Sports betting is the most popular form of online betting worldwide, occupying over 40% of the total online betting market. Sports betting is followed by casinos which covers 32% of the online betting market activity. Other betting activities like lottery, poker, and bingo also cover a significant chunk of the online betting market worldwide.

Online betting industry is on an upsurge streak and is on the verge of becoming a leading industry in the gaming sector. Though not as welcomed by some legislation and countries across the globe, sports betting has still accomplished itself as a popular choice amongst users. The phenomenal rise in sports betting industry can be acclaimed to the following reasons:

Votes to legalize 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 multi-million dollars.

Growing Participation in Australia

Australia is one of the leading nations in the sports betting industry. The growing participation of the Australian audience is one of the crucial drivers that has fueled the growth of this industry. As per a survey in 2015 that claimed that half a million Australian adults regularly placed bets on sports. The demographics represented that most of the bettors were men aged 18-49. The Australian market is consistently witnessing a rise in the market size and the user base for the sports betting industry.

Emergence of Machine Learning

The growing technological advancements and more & more efficient use of technology is giving a major boost to the online betting industry. The advent of machine learning in sports betting and the growing success of esports tournaments would further accelerate the growth of the betting industry. With the proliferation of data and technology, the industry is marking a growth like never before. The unique gaming opportunities and secured algorithms have stimulated the user base and acceptance towards the industry.

Rising Popularity in India

Over the past few decades, the Indian sports betting industry has come a long way, making it a spectacular entertainment source. A plethora of online betting sites have become exceedingly popular and have created a huge craze among Indian users. However, betting on cricket or on other sports except horse racing is outlawed in India. But seeing the popularity and increasing fan base there’s a chance of sports betting being legalized in India. A population of 1.3 billion people with one of the largest youth populations and a GDP of $2.4 trillion, India is an emerging market for sports betting. The three major reasons that are pertinent for the rise of sports betting in India are:

Probability of being legalized

The gambling industry is a widespread market but is a grey area in India. Despite the prohibitory laws against it, the online betting industry always has a huge fan base. The gambling market has a huge potential in India and is estimated to grow at 41 percent annually. As per the Indian constitution, the states can decide the laws related to betting in their region. Hence 13 states and 5 union territories have sanctioned government run lotteries. While horse racing is legal in 6 states and casinos are legal in Goa and Sikkim. Sikkim till date is the only state to legalize sports betting. The rise in popularity and increasing fan base, it is possible that India might be on its way to legalizing sports betting in the near future.

Easy and cheap availability of internet

One of the major reasons that have aided the emergence of the online gaming industry is the easy and cheap availability of the internet. With increasing access to affordable broadband mobile and greater choice in smartphones, the mobile gaming industry has seen a growth in the last few years. In addition to that, India has the cheapest data globally which has provided a huge opportunity for operators across the globe to develop successful and scalable businesses across the platform.

Staunch cricket and football fan base in India

Cricket in India is a religion to many. The love for the sport has ensured an upsurge in the fantasy industry. The popularity of the sport has been on a rise from young teenagers to grown up adults. The craze for sports doesn't end at cricket alone. With the rise in popularity of other sports like football, basketball, and kabaddi the Indian audience is relishing the fun of these sports leagues as well. Hence, giving a huge rise to Indian sports betting industry.

The bottom line

With legalization to be foreseen in the near future, propelled by increasing craze of the sports fans, a brave new world of sports gambling seems to be emerging. The sports betting industry is set to transform the mainstream and generate a significant value for the sports betting ecosystem. Fortunately, we at Vinfotech can help you take the plunge and start your own sports betting business and leverage the full potential of this growing industry. Our customizable white-label software, pre-loaded with top-notch features & backed by a super powerful admin panel will help you mark your entry into the thriving sports betting space.