The global sports betting industry is growing at a record rate and is not about to slow down any time soon. With the digital revolution and advent of online sports betting, everything is looking up for bettors and sportsbooks alike.
Sports betting has changed a lot in the past two decades. What started as a marginal venture is now broadly embraced in different parts of the globe. And in countries where the governments prohibit gambling, enthusiasts are still finding ways to indulge in their favorite activities, nonetheless.
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The online betting and gambling market was valued at $ 46.9 billion and is estimated to hit the $123.5 billion mark by 2026, showing a CAGR of 11.4% over the projected time. This growth is thanks to advancements in technology like high-speed internet connection and secured payment options. The infiltration and use of smartphones is also another contributing factor. Besides, online gambling platforms are offering easy-to-operate mobile apps that enhance usage and will propel the growth of the market shortly.
Sports betting
It involves the prediction of sports outcome and placement of wager on an outcome. Basketball, football, hockey, baseball, boxing, track cycling, and horse racing are majorly included in sports betting.
Key trends
APAC region to hold about a half of world’s sports wagers
It does not come as a shocker that the APAC region – Asia-Pacific – is the biggest sports betting market. With a population of over 4 billion people, it’s easy to see why APAC holds the largest share of the sports betting industry pie. This growth is mainly attributed to the increase in wealth and digital connectivity. But still, Hong Kong and Macau have ahead of sports betting revenue-generating regions around the globe.
The United States is the fastest-growing market
In 2016, the US sports betting market was valued at $40 billion, which is a significant rise from $20 billion in 2009. Today, its market capitalization is between 60 and 73 billion, which translates to $10 billion every year. If this trend keeps up, the US sports betting will hold a significant share in the global market.
There’s also a significant growth in other parts of the world
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Sports betting holds more than 40% of the world’s gambling income, and most recent projections reveal that the CAGR is set to rise by 8.62 from 2018-2022. Other than the APAC and US, sports betting is also booming in other parts of the globe, including Europe and Australia. South America and Africa also hold a significant share in the market, though not as much as the US and APAC. This is due to limited internet access and more substantial macroeconomic aspects that influence GNP.
The future of sports betting
The infiltration of online sports betting stretches beyond desktops and laptops. Today, about 20% of sport betting activities now happen through smartphones. This figure is estimated to grow to 45% by the end of 2019. Gaming platforms are also enhancing their solutions to match the rising demand. All we can say is that the future looks bright for the sports betting industry.
