Based on type, the online gambling market has been segmented into sports betting, casinos, poker, bingo, and others. The sports betting segment dominated the market in 2019 owing to the growing use of digital platforms across the world.
- International sports betting is estimated to have a market capitalization of $250 billion. According to Statista, a highly-reputable data firm, licensed online sportsbooks (like the ones we review) account for.
- Asia is the biggest market for gambling and sports betting in particular. The online/interactive category is probably the fastest growing segment of the industry. Worldwide gross win from online gambling was.
The online gambling industry originated in the early 1990s. The original idea was to develop online games and make online casinos where people could play various games. And of course, there was a chance to earn money if you are lucky enough. Esports (or competitive computer gaming) originated earlier, in the 70s, and has been popular ever since. And it broke through with the advent of the internet and the development of technology. Esports continues to influence the online gaming industry in modern times in several different ways. Here are some of them:
1. Esports has enabled many players to become professionals
In the early years, people would gamble online mostly for fun and satisfaction. It seems that esports has changed that trend and moved it in the other direction. Nowadays, we have much more professional players. Competitive computer gaming has made a good foundation for the development and advancement of gamers. And that is why today more and more players decide not to stop at the amateur level. Instead, they are determined to turn into professionals, step up their game, and achieve much better results. Or in other words, to earn much larger sums of money. Esports offers so many games you can play online now, such as LOL, Fornite, Hearthstone, and many others. These games allow you to improve continuously and become a professional over time.
2. Technology makes a massive contribution to the development of esports
We live in a digital world that is continuously changing due to the development of technology. And the same goes for competitive computer gaming. New technologies allow these games to become highly attractive and more addictive. They look so good and make you feel like you are present in the game. These changes lead to people of different ages and interests being able to find games for themselves and become more interested in playing games and online gambling. You can find so many websites all over the internet that offer various online games.
For example, on this website, you can find a detailed overview of online casinos and games with honest reviews. This way you can find out what options are available in your country and find something you like. Technology makes a massive contribution to the development of esports in many different ways.
3. Where esports meet online gambling, esports betting occurs
Online sports betting has been popular for a long time before esports appeared. Eventually, where these two met, esports betting occurred. In the beginning, bookmakers slowly introduced this new way of betting before they realized how much potential it has and that people are getting more and more interested. And today, we can notice more online sportsbooks offering esports section where people can bet on different computer games, such as League of Legends, Dota, and others. It is more than easy to play, and you can do it in a few simple steps. You just need to click on the esports and see what matches are next. Once you decide which of them you want to bet on, you can do so right away.
4. Esports has provided a variety of games for young players
Esports has brought so many interesting games and features that the number of younger players increased significantly. Online poker and blackjack became some of the most attractive casino games for the younger generations. The same goes for online slots, which are becoming more popular over time. The younger generations grew up with the internet and already advanced technology, so it was necessary to provide this for them to become interested in online gambling. Online casinos now offer high-quality games with much higher resolution, sound quality, and overall experience. This was achieved by using AR/VR technology, which ensured that these games became more attractive for young players.
5. Esports has eliminated all limitations
Nowadays, thanks to esports, there are no limitations on competitive computer gaming. You can play whatever game you like, wherever you like. You can play the games from the comfort of your own room, as long as you have a computer and fast internet. It doesn’t matter how far away the players are, they can participate in the same tournament and compete against each other. You don’t have to be physically present in a casino and waste your time on getting there. Or be in the same room with people you’re competing against. Everything is designed so that you enjoy comfort and convenience, without any restrictions.
Online Sports Betting Market
6. Esports changed the way betting works
Esports brought betting that doesn’t require money. For example, instead of betting for money, people started betting for winning the items from the games. It was something that did not exist before. During the game, players can collect various items that can make their character more powerful, or provide them some other benefits. For some players, it became much more crucial than money. There is also something called skin betting. Skins include different characters present in the game that are there for more aesthetic purposes, and you can bet with them, too. These skins and items can have different values, and some of them are pretty rare and, therefore, they are worth more. Eventually, you can bet the items and skins you previously collected and get the money that way. The concept is becoming more complex with time, and it transforms the way old-school betting used to work.
Conclusion: Online gambling become available in the 90s, while competitive computer gaming (esports) was out there more than 20 years before that. Esports became more popular with the development of technology and it continues to grab forward at the speed of light. Esports shows the impact on the online gambling industry in numerous ways. It enabled more players to improve and become professionals, it opened up a new world of esports betting, and completely changed the way the betting works. It has provided a variety of games for younger generations and eliminated many limitations that existed for a while. Technology continues to make an impact on esports and game attractivity, which is obviously the trend that will continue in the future.
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The global sports betting market continues to surge in popularity. In fact, it’s one of the fastest-growing sectors in the world, offering tremendous potential for both sportsbooks and bettors. With the digital revolution in full swing, the sports betting industry continues to undergo dynamic changes, expanding in established markets and forging its way into new ones.
In this article, 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 Massive Is the Sports Betting Market?
It’s important to recognize that the overall size of the sports betting market is difficult to estimate because regulations and record-keeping are inconsistent. There is no definitive resource, from nation to nation, that researchers can solidly rely on. Records are too disparate to paint an entirely accurate picture.
That said, it doesn’t mean that there aren’t reliable estimates. International sports betting is estimated to have a market capitalization of $250 billion. According to Statista, a highly-reputable data 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.
APAC (Asia-Pacific): The Biggest Sports Betting Market
With a population of more than 4 billion people, it’s of little surprise that the APAC region occupies the most significant percentage of market share in the sports betting industry. It’s estimated that residents falling in the APAC region are responsible for 47% of the world’s sports wagers.
What’s Driving This Increase?
The answer is simple: increased wealth and expansion in digital connectivity.
Historically, Macau and Hong Kong (both within APAC) are two of the most prominent sports betting revenue-generating regions in the world.
Economic prosperity throughout the rest of the region, however, provides disposable income for leisure activities, such as sports betting. As real wages continue to increase in the APAC region (as they are projected to) more and more money stands to end up being placed on sporting events.
Furthermore, internet providers in the APAC region report significantly increased penetration in the market. A better internet connection allows people to consume the latest news and information in sporting. It’s a lot easier 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.
How Much Will Sports Betting Markets Grow Elsewhere?
Sports betting currently accounts for upwards of 40% of global gambling revenue around the world, which is more than any other section (inclusive of lotteries, casinos, poker, and other forms of gaming.). According to the latest projections from market research firm Technavio, the CAGR (Compounded Annual Growth Rate) is expected to increase by a whopping 8.62% from 2018-2022.
While all eyes are on the US and APAC regions, sports betting is still growing in other areas of the world. Though growth may not seem as aggressive or impressive in Australia and Europe, it’s mainly due to a long history of sports betting in these regions. However, sports betting is still growing steadily in these regions.
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 Are the Most Popular Sports Bets Around the World?
Football (theEuropean kind) has, by far, the greatest betting volume, closely followed by American football. The other big three North American leagues (MLB, NBA, NHL) receive a significant amount of betting volume, too.
Horse racing, while often categorized as a niche market, still receives heavy betting volume in the US, UK, France, Australia, and South Africa, which are all sizeable markets.
The Global Sports Betting Market of eSports
The fastest-growing sports market (in regards to betting volume) is eSports. For those unfamiliar, esports are organized, multiplayer video game competitions which involve profession players. The games may range from Starcraft to Player Unknown Battlegrounds. In 2017, eSports generated over $650 million in revenue, and are projected to create upwards of $1.5 billion by 2020.
According to a senior analyst at the market research firm Technavio, the increased popularity of esports is pushing bookmakers to allow bets on many different esports matches, now including golf, tennis, and rugby. This growing volume is driving revenue generation across the sports betting industry.
As esports transform from a budding industry to a more fully-formed, established one, it will generate a significant revenue stream for the broader sports betting market.
Where Does the Future of Sports Betting Lie?
All market research points to one thing behind the continued popularity of sports betting: the digital revolution. The massive projected growth figures for sports betting are in large part due to the proliferation of internet around the world, and sportsbooks’ subsequent investment in their digital platforms, as a response to the demand for online sports betting. It’s never been easier for people around the globe to connect to the internet, and subsequently, start betting via sportsbooks.
The penetration of digital sports betting goes beyond laptops and desktops. Globally, 20% of sports betting now takes place via mobile. By the end of 2019, this figure is projected by to upwards of 45%! Sportsbooks, especially the sites we review, have responded to their consumers’ demand for increased connectivity. Bettors are seizing new opportunities made available by these advances.
Technology has changed how we work, how we play, and the way we live. It’s also transformed how we bet on sports. We’re not entirely sure what the next major advance in the digital revolution is going to be, but we’re sure that it’s going to make betting on sports bigger and better.