The future of sports betting pt.1

The face of sports betting has changed drastically in the past decades, especially in the last few years. Older millennials can remember the days without the internet and how sports betting worked offline with paper lists and cashiers in retail shops. Even older generations, who didn't have access to retail shops, had to call a “bookie” to place a bet. Often, the odds would change by the time of placement, or there would be errors in accepting bets. Generation Z cannot even imagine these struggles, as they have access to sports betting at their fingertips through their phones.

Present state of betting

The projected revenue of online sports betting is expected to reach $45 billion, according to Statista. Although we lack global data comparing in-person to online revenue, we have information for the US market, which shows that 75% of the revenue is generated online. This trend is likely to continue growing, with the online market probably capturing an even larger majority in the future. It was inevitable that retail would be quickly replaced by online solutions with the growth of the internet and the use of mobile devices. Today, nearly 5 billion people have access to the internet, and a significant portion of them have access to online sports betting and gambling.

Biggest Markets

Europe, as the first region to adopt legalization in most of its countries, is the biggest market worldwide, accounting for approximately 35% of global revenue share. The fastest-growing market is the Southeast Asian & Pacific region, with Australia leading in that region with almost $10 billion in revenue. The economic development in Southeast Asia also leads to increased smartphone usage among the younger generation, which could have a significant impact on the future of sports betting. Additionally, the rise of "non-sporting" events and games, such as eSports, is particularly popular in that region and may redirect some revenue towards the eSports market.

Impact of sports betting legalization

While many gray and black markets have been restricted by numerous legalization laws worldwide, countries that legalized sports betting can now more easily grow their local markets. A prime example is the US, the strongest economic market globally, where only Nevada had legalized sports betting before Delaware and New Jersey joined in 2018. Since then, numerous states have legalized sports betting, and the market has already exploded to a $10 billion industry. The compound annual revenue growth is one of the highest predicted, at more than 12%, which is expected to push the US market to over $17 billion by 2029.

Latin America

Latin America is one of the potentially largest markets worldwide. As the second youngest continent by average age, it has significant potential for developing non-sporting events gambling, such as esports, in various countries. Revenue has nearly tripled since 2020 which was around 1.5 billion US$, largely due to the legalization of betting in many countries, with Brazil leading the region with over 200 million people. A substantial number of famous esports teams come from South America. While football will always be the main sport in South America, esports could potentially transform the betting landscape in South America and even worldwide, driven by the younger population's interest in this part of the market.

Africa

Africa, the youngest continent by population and the second most populated after Asia, is currently a major target for market expansion. Despite the lack of clear regulations in most countries and the fact that many do not ban gambling or sports betting, numerous operators are already running their businesses in Africa. Consequently, precise figures for the region are unavailable. However, considering Africa's size and the youthful demographic, we can anticipate significant growth in the betting industry on the continent. The increasing use of the internet and access to live streams, sports, and esports is likely to drive substantial revenue into the market in the coming decades.

Blockchain

Even though it is still in the early adoption phase, blockchain is slowly changing the face of betting. Crypto betting is becoming more popular with the younger population, and we are expecting a rise over the next 10 years. Since crypto is primarily adopted by a younger, more educated demographic, we can expect it to grow in the coming decades and potentially even dominate the market.

The main and biggest impact of crypto adoption, aside from other benefits such as avoiding KYC processes, faster payouts, and more fast-paced games offered by blockchain technology, will be providing access to betting for more people worldwide. Imagine a huge market like Nigeria, where more than 30% of the population uses crypto but lacks access to bank accounts. With an internet connection and crypto, customers can place bets easily.

You can read about the advantages of crypto betting in our article.

SUMMARY

Sports betting has evolved with online platforms, growing to $45B. Europe leads the market; Southeast Asia and Latin America show rapid growth. Crypto betting rises among youth.