ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

Future of Online Sports Betting

Share On Facebook
share on Linkedin
Print

The sports betting industry was relatively unharmed by the events of 2020. The accompanying economic slowdown did  not seem to affect it.  Sports industry analysts say that the performance could be stronger than expected when 2020 numbers are out.  The high growth is a continuing trend in which the sports betting industry is expected to grow to around $9 billion by 2025.   What will be the main drivers of  sports betting in the near future?

 

Move to the  Mobile Platform

Currently smartphone ownership is  about half of the total mobile ownership.  There are an estimated 2 billion smartphones in the world.  Around 72% of internet users will access the internet  solely on smartphones by 2025.

Mobile gaming is seeing strong growth because of the  advantages the mobile offers over other platforms.   Mobiles are convenient. The mobile has become an all-round  purpose gadget for communication, information and entertainment.  A smartphone is the first choice to use  for sports betting since the owner is already  using it and  carrying it around.

Sports betting players have  noted the shift and moved quickly to adopt the trend. All major sportsbooks offer their platforms on mobile apps.  They have further moved to ring fence their current markets, and attract more  clients with incentives. There are very attractive betting offers & betting accounts and more are coming online each day.

New smartphone ownership by young people will also have an expansionary effect on the  sports betting market.  Young people are more comfortable using smartphones. They  will readily access sports betting apps on their smartphones. The barriers to entry are lower on a smartphone  than walking to a betting shop or on the computer.

 

Higher Adoption of Crypto Payments

Cryptocurrencies  like Bitcoins  are becoming more mainstream, as more people adopt them for investment and payments.  Some casinos have already started  accepting  Bitcoins  deposits. It has become easier to make crypto payments direct from mobile wallets. The steps are fewer than paying from  a credit card or  bank transfer.

Higher adoption of crypto  will see more crypto payments for  everyday  situations including  sports betting.  Betting operators have their own reasons to accept the crypto payments. They are cheaper to process unlike  credit card and other bank related payments.  Lower transaction costs allow  betting operators to offer higher odds since they have better margins.   Better odds  attract more customers.

 

Growth of US Sports Betting

The US Supreme Court struck down restrictive betting laws in 2018. Since then,  21 states have  legalized sports betting with  13 allowing   mobile betting. Sports betting has generated more than $2.5 billion in revenue.

The US is potentially the biggest  sports betting market.  Sports industry analysts in the US expect this market to hit $81 billion in 2024.  The American Gaming Association has even more  optimistic forecasts of $150 billion growth.  The forecast is on the basis that illegal gambling could be as high as $123 billion today.

 

Explosion of Sports Betting Operators

The sports betting industry is currently dominated by fewer than 15 major players.  But the lucrative numbers will prove very tempting for  new investors. The US market is pretty much up for grabs  considering there are about 4 major players currently.

The proliferation of  sports betting operators will be further pushed  by white label licenses offered by the major player. This mode of licensing has lowered   barriers to market entry  a great deal.  Any investor with  $50,000 can buy a white label and start pulling in customers with smart marketing. The big players encourage it because they get  their cut.

Market forces will  push the US market to high liberalization as it is in Europe, where there are numerous small betting operators.  Betting customers  will have more choices and better incentives as the competition heats up.

 

Big Data Application

Betting companies  are already collecting massive amounts of data with  their apps.  Deep learning algorithms are getting better at analyzing this data to create  highly accurate user profilers.  In a few years’ time,  betting operators will deliver customized  betting odds depending on the player  risk profile they create.

Robotic play is a very  likely possibility in the near future. Robots are already proficient in fluid data situations like forex trading.  Betting robots with the ability to scour and analyze  through thousands of games  will dramatically change betting.

 

Growth of eSports and Virtual Sports

eSports currently attracts over 443 million fans.  They have become  serious betting markets with thousands of play opportunities. There are more eSports coming onto betting platforms every day.  Virtual sports modeled on real-life sports, teams and players  have become  a viable alternative  when the game is off-season. These two markets will become bigger as the gaming community gets onto betting platforms to root for their favorite  players.

There are few industries with such promising prospects as sports betting.  More players, more operators and higher incentives will make for very interesting developments.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com