The sports business is a growing phenomenon across the world. There are many entrepreneurs and investors planning to expand or launch their sports businesses. The increasing demand for sports has raised the demand for sports businesses. There are various sports businesses available in the market such as opening sports shops, sports promotions business, production of video games, sports reality shows, sports clubs and leagues, sports betting business, etc. As per statistical records, the sports betting market is worth approx $ 3 trillion, and nearly $150 billion is wagered in the U.S. The investors are promoting the sports betting business and developing sports betting software for attracting large numbers of audiences to the business. As with increasing legalization in the U.S., the market for sports betting is also increasing. Sports betting includes casinos, lotteries, poker, and many more options. There are more than 50% of people who place bets on sports leagues and events.
Market Analysis for Sports Betting
- Sports betting contributes 30-40% of the gambling market.
- According to CAGR, the betting market will increase by 8.83% during 2018-to 2024.
- Based on the region, the Asia Pacific region is the most significant market share for sports betting.
- As per the research by analysts, the sports betting market is expected to increase by approx $ 144.44 billion during 2020-2024.
- Along with that, the market share of sports betting will reach to $ 127.3 billion by 2023.
- As per the research of the American Gaming Association, there are approx 2800 online sites available that offer gaming including poker, bingo, casinos, and many more.
Demographic of Sports Betting
- As per the market survey, young males are more likely to participate in sports betting. In the last 12 months there are approx 40% bettors with the age group of 23-34 years. .
- The research of the American Gaming Association found that through online platforms 69% of people placed bets.
- An increasing number of bettors shows that they found online betting more convenient and easy.
- There are two different kinds of bettors such as sports bettors and casual bettors. The casual bettors will increase by 18.8 million.
- The statistical record shows that sports betting will reach 32.8 million. This number shows a high acceleration in the upcoming time of 2020.
Sports Covered in Sports Betting
All the sports involved in sports betting are equally important but some of the sports are popular in sports betting. Some of the sports have more players involved than others. These sports are as follows:
- According to the study, NFL football is considered the most popular sport of betting. The number of viewers increases after the FA cup finals of 2017.
- Tennis is the most demanding sport in the UK that causes huge revenue yearly in the betting industry.
- Basketball is the most developing sport as it allows live betting platforms in sports betting.
- The other sports such as racing, boxing, cricket, etc also generate opportunities for the sports betting industry.
- The gulf is proven to be the most growing sport that provides several opportunities to the players.
- The mobile application is the new trend for the betting industry that enhances the numbers of players in the industry.
Upcoming Future Aspects of Sports Betting
Sports betting is the most trending and profitable choice for entrepreneurs. It helps in generating huge profits in the business and develop user engaging platforms. The upcoming years are also going to be profitable for businesses in the following ways:
Growing Sports Betting Market
Due to legalization in many countries, the sports betting market is growing rapidly. This situation will cause upcoming opportunities to the investors and a more engaging audience in the industry. When betting was not legal there are approx 90% of people who placed bets illegally but now legalization will develop more growth opportunities to the betting market.
Direct Profitability to Sports Leagues
Many sports leagues companies in the market are partnered with data companies and other sports companies that help in generating profit to sports leagues business directly. Thus, sports betting businesses can be profitable in different aspects and enhance revenue models of business.
Exposure to Online Betting
With the increasing number of bettors the use of mobile applications will also rise because it gives comfort to the bettors. This will increase online betting and develop the opportunity for online betting in the industry.
Competitions among high-tech companies
Many businesses are moving to sports betting businesses to generate huge revenue in their business. This will cause competition in the industry and generate opportunities for new and existing investors. The market share of the industry will also increase by increasing competitiveness in the market.
Scope for Operators
Due to increasing success in the area of sports betting, there will be more new investors investing in the sports betting industry. After the legalization, the number of businesses will also increase in the market. This will generate scope for new and existing operators in the market.
Legalization in Sports Betting Business
Currently, Germany introduced minimum requirements that ought to be fulfilled by the investors for having a license regarding the sports betting business. The requirement includes the following areas:
- Security regarding IT services
- Process of payment
- Protection for minors
- Information of representatives and applicants
In the United Kingdom, betting on sports was legal since 1960. It has the oldest sports betting business in the world. As per new laws and regulations by UK gambling commissions, the government issued a new code of conduct for betting businesses. These norms are as follows:
- Increasing transparency
- Developing standards for ADR.
- Rules for protecting bettors in the market
- Voluntary funding by UKGC.
Initially, there were two states where sports betting was legal but with recent legalization investors and businesses got new opportunities in the U.S. Now there are 13 states where sports betting is legal. This can be a great opportunity for businesses to invest in the betting industry.
As stated above, changing technology increases the opportunities for sports betting businesses. There are several options available for sports businesses but sports betting has proven to be the most appropriate choice in recent times. According to statistical records, sports betting is rising well in the market. Along with that, there are several sports available in the market to enhance the profitability of the business. Thus, to remain profitable in a competitive world, investing in sports betting is a better choice for entrepreneurs.