The future of sports betting pt.2

In Part 1 of this article, we discussed crypto and some new markets that could propel sports betting into new dimensions. However, incorporating non-sporting events could also completely change the landscape of sports betting. Would it still be called sports betting if the majority of bets were placed on non-sporting events? I suppose the customer doesn’t care as long as they have events to bet on. Nonetheless, many factors will determine the future of sports betting. The aging population of Europe will significantly impact traditional betting. By some predictions, Africa will be the most populated place in the world by 2100. How might that influence the world of betting?

Traditional betting

Would traditional betting or betting on traditional sports ever lose the battle to non-sporting events like electronic games or other faster-paced games? We don’t think there is an easy answer to that. Even if it happens, it will take a very long time, as sports like football, tennis, and basketball currently hold significant market value and receive far more coverage than any other events. However, this might change with the younger population. As we have mentioned more than once, the new generation is more involved in electronic games, and during the COVID-19 pandemic, the boom of short and fast-paced games was considerable.

Electronic games

Esports, frequently mentioned, already has and will continue to have a significant role in changing the face of betting. Combined with the incoming new generation of bettors, it might completely change the game, even if it doesn't seem likely at first glance. Imagine that 100 years ago, someone told you that football would become the most betted-on game in the world, back when horse racing was dominant in the world of betting.

Today, it might sound silly that eSoccer or other eGames could become the number one game in the betting industry. It may take some time, but we might not be far from that point. COVID-19 showed us how quickly eSoccer and eBasketball were accepted by bettors, not just the new generation but also traditional bettors who swiftly transitioned from traditional sports to eGames.

Esports demographics

The demographics of esports players and viewers are predominantly young. Seventy percent of those engaging with esports are younger than 35. As this population ages and begins to earn more, they could become the main force driving esports higher on the ladder of the gambling market. An interesting fact about esports demographics is that almost 100% of the population engaged with these events also participates in some form of gaming themselves, unlike traditional sports gamblers.

Crypto/Blockchain

In the previous article, we mentioned blockchain, which might become one of the biggest drivers in sports betting. As discussed, new and emerging markets could double or even triple the current market value in the next 10 years using blockchain technology. Many of these new African and Asian markets now have access to the internet, and with this technology, it will be all you need to create an account and place bets. In many of these countries, numerous customers do not have and may never have access to bank accounts or good credit scores to open an account. However, many young people, as already proven, have internet access and can sell their knowledge outside these countries in exchange for payments made through cryptocurrency.

Anonymity and safe transactions

Transactions on the blockchain are much safer than bank transactions, being less likely to be hacked and more resistant to fraudulent actions. Each transaction must be verified by a network of computers before being added to the blockchain, making it highly resistant to unauthorized access. Customers don’t need to disclose any private information; instead, the funds are linked to a user ID. This simplifies the process for both the betting company and the customer while also maintaining the customer's anonymity.

Automated bet placement through blockchain

Crypto transactions are designed to be fast and secure. An important feature for customers is that, unlike banks, crypto transactions are available 24/7, eliminating the need to wait for bank opening hours to complete transactions. Deposits or withdrawals are done instantly at any time. Smart contracts enable the bookmaker to accept bets automatically and quickly under the right conditions. Settlements are also automated based on the set conditions and are paid out to the customer's wallet instantly.

Future of betting

Three major components will shape the future of sports betting, in our opinion: demographic changes, the adoption of electronic games, and the rise of cryptocurrency. Although these trends are interconnected, we will discuss each separately. Traditional sports will likely continue to dominate the market for some time, particularly since the wealthiest and most influential demographics currently do not prioritize crypto or non-sporting events as their main choices for gambling.

There is a lot to consider. How will the future look when the population most engaged in esports becomes the main earning demographic? What happens when all internet users can start placing bets through crypto? Africa alone now has 40% internet penetration, which equates to around 500 million people online, making it the youngest continent. In 2013, less than 20% of Africans had internet access. In 10 years, most of the continent could have internet access, and through crypto, potentially all of them might have access to gambling platforms. These are all important considerations, especially for betting experts and companies as they make future assessments.