As the virtual sports betting landscape begins bringing real value to the economies of numerous countries, the notion of sports betting, as conceived illegal by regulatory bodies, is witnessing an epochal scale of change. The legalization of sports betting in some parts of the world implies that, avid bettors won’t have to resort to under-the-table wagers, which betokens that the industry will spectate a surge in its clientele base.
The real boost to the sports betting vicinity, however, lies with the usage of smartphones, which is nearing the stage of ubiquity, as bettors show a marked proclivity for the 'bet anytime, anywhere' trend. Rapid penetration of wireless gadgets and development of user-friendly applications will further chip in, as sports betting becomes more and more leisure-integral for the millennial, Y, and Z generations.
Gauging the lucrativeness of the landscape led by perpetual innovation, Transparency Market Research (TMR) traces the historical, current, and futuristic trends that qualify as influential for the growth prospects of the sports betting market, during the period of 2019-2027.
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Tracing the Growth of the Sports Betting Market
Contemporary sports betting comes about substantially from horse racing, and the early evolution of the industry traces its onset to the U.K. As Western countries followed suit, laws dictating gambling were formed. However, the major scramble towards taking the industry to the billion-dollar club began with the emergence of online casinos in the 1990s. As industry players offer the ease of betting and a low entry cost, a large number of bettors are attracted to online platforms, and in 2018, the sports betting market registered a value of US$ 238.09 Bn.
Industry players are cashing in on the integration of live streaming and online gambling platforms to gain greater resonance of bettors by banking on digital promotional activities. As Bitcoin, Dogecoin, Ripple, and Litecoin infiltrate into the sports betting landscape, bettors are inclining towards these virtual currencies due to ease of transaction over traditional funding methods.
With cryptocurrencies, bettors residing in regions where real money betting is forbidden can securely and transparently conduct their transactions. Since market players instigate their scramble towards making the landscape as user-friendly as possible, the sports betting market is likely to remain lucrative, expanding at a CAGR of ~11% during the forecast period of 2019-2027.
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Online Platforms – A Key Opportunity to Bet on for Market Players
Traditionally, the sports betting market was clasped amidst the battle of legalization, which still, in some regions, fights for legal identity, as money laundering instances and betting addiction raise concerns among the regulatory bodies. However, the relaxation of laws and legislation in Europe offers an open ground for sports wagering activities, and the region accounts for ~ 52% of the market share.
With a concentration of leading betting brands, Europe has become home to the sports betting industry, with football contributing a significant share to the regional market, and 'cricket mania' is driving bets at an exponential rate. However, the Asia Pacific sports betting market remains driven by the high frequency of mega sports events and surge in the number of participants.
As countries such as China and India have a majority of young population, their indulgence in sports is high, and the proliferated infiltration of smartphones is further adding value to the mainstream trends observed in the region. Though online betting has been growing at a significant rate, given the ease of use, the traditional hold of offline betting platforms on a dominant share of the sports betting market has been intact, as a large pool of bettors still prefer wagering in-person during sports events.
As the popularity of football is no longer confined within the boundaries of developed countries, it marches towards being a global sport, which offers a bet-worthy opportunity for industry players, among the other game types. However, threats of cyber-attacks, susceptibility to betting addiction, and a huge unregulated market team up against the steady growth of the sports betting market.
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How Operators Can Place Winning Bets in the Sports Betting Market
Mitigate the Growing Threat of Cyber Attacks
Online betting platforms that have been surfacing and drawing significant transactions makes them extremely attractive to the prying eyes of cyber attackers, making the business vulnerable. As a precautionary measure, market players can integrate software and tools to assess the vulnerabilities and plan their defense mechanisms so as to safeguard their assets.
Increase Integration of Live Streaming with Online Betting
With the growing penetration of smartphones, end users are likely to switch to online betting portals, which will necessitate the live streaming of sports. As the future of the sports betting industry is likely to remain driven by online platforms, operators need to increase the integration of live streaming with online betting to facilitate real-time betting platforms for bettors.
Invest in Recently Legalized Betting Markets
Malpractices in a majority of betting cases incited regulatory bodies to hold on to the stringency of regulations in the sports betting market. However, increasing recognition pertaining to the industry’s contribution to the economy, and growing employment opportunities have led to the relaxation of laws on sports betting in some countries. This is giving leeway to operators, in terms of business expansion, in these recently legalized betting markets.
Sports Betting Market - Competitive Landscape
The sports betting market remains fragmented, with numerous players operating at multiple levels. The sports betting market functions under the dominance of key players such as
- Bet 365 Group Ltd
- GVC Holding PLC
- The Star Group
- Paddy Power Betfair PLC
- William Hill PLC
who account for 25-30% of the total market share.
The key tactic that supplements this market share is the in-house development of products and acquisition activities to bring in innovation in the space. For instance, Paddy Power averred that, it merged with Betfair to form Paddy Power Betfair, in 2016, and acquired Daily Fantasy Sports Co., in May 2017, with a view to leverage the prowess of technology so as to extend the capabilities of the platforms and offer a superior betting experience to end users.
Regional players, however, emphasize on building partnerships to expand their businesses and occupy a key position in the market by employing a multi-brand strategy. For instance, in October 2017, Kindred Futures partnered with Cockroach Labs to develop a next-generation global online gaming platform.
Market players also direct their efforts towards gaining licenses to operate in new markets to seek better exposure and expand their end-user base. They strive to gain exposure through digital promotions with the help of celebrity endorsements.
Analysts’ Take on the Sports Betting Market
Authors of the report maintain a propitious perception of the sports betting market, as regulations and laws begin to loosen their grip on the online gaming and betting industry. Operators who expend efforts towards the development of online platforms will be able to get a better hold on the end-user base, as modern-day bettors show better resonance with online platforms. However, they should be forearmed with robust strategies and software to mitigate the risks associated with the growing instances of cyber attacks. Digital promotion of online betting portals through celebrity endorsements will remain the key to place a winning bet in the sports betting market.
With football being the key game for a large pool of bettors, service providers can develop live streaming and online betting platforms with distinguished features to upgrade the betting experience. The emergence of cryptocurrencies into the landscape is likely to attract the attention of modern bettors. However, stringent regulatory norms in a large number of countries remains a longstanding challenge for service operators, which further restricts the sports betting market from exploring its full growth potential.
- According to Transparency Market Research’s latest market report on the sports betting market for the historical period of 2017-2018 and forecast period of 2019-2027, the rise in wagering for sports from online platforms by end users is expected to boost the growth of the global sports betting market during the forecast period.
- Globally, revenue generated by the sports betting market is estimated to reach ~ US$ 261 Bn in 2019, and expand at a CAGR of ~ 11% in terms of value throughout the forecast period.
Sports Betting Market: Rising Adoption of Internet-based Devices a Key Driver
- Rapidly increasing penetration of Internet-based devices such as smartphones and tablets helps increase the contact time with end users by engaging them with online betting activities with a minimum impact on daily activities. Thus, smartphones are expected to play a major role in the adoption of sports betting among end users in the coming years.
- Increasing penetration of smartphones along with the adoption of video streaming and instant messaging services have bolstered the growth of online sports betting through mobile devices. This is expected to indirectly influence user experience through the development of better mobile applications. The implementation of 5G networks is projected to foster the adoption of smartphone-based betting over the forecast period, thus boosting the sports betting market.
- Rise in end-user preference for betting through online platforms across the globe has encouraged key players to innovate and develop online betting applications with attractive offers for participation on betting sites in order to increase their footprint in the global sports betting market through product portfolio expansion.
Sports Betting Market: Large User Base of Traditional Betting
- Global sports betting revenue is expected to grow at a healthy rate due to high disposable income, favourable regulations, and tax rebates in different regions. End users in the age group of 35 to 55 years have high disposable incomes and a passion for the adoption of latest technological devices. Therefore, this end-user segment is more likely to adopt multiple betting platforms in the near future.
- Generations Y and Z, consisting of the age group between 15 to 25 years are more inclined to use mobile devices, and may find online betting a part of their recreation in the coming years. Thus, combining the inputs from both age groups, the sports betting market is expected to register positive growth over the forecast period.
Sports Betting Market: Integration of Live Streaming (sports) with Online Betting
- The demand for real-time sports streaming is expected to increase in the coming years, owing to the increase in Internet speeds and the high compatibility of mobile devices. Therefore, most players are expected to switch to online sports streaming through their mobile devices, eventually boosting the sports betting market.
- According to our research, global mobile video data traffic is expected to reach around 23 Exabyte/month by 2020 from 2.8 Exabyte/month from 2016. Operators need to integrate live streaming with their betting applications so as to increase the demand for online sports betting. This can be done through the integration of media streaming applications with gaming applications and partnering with media partners.
Global Sports Betting Market: Competition Landscape
- The sports betting market is influenced by the presence of many global and regional companies. These players are likely to face stiff competition due to the monopoly and presence of several regional players. Key players in the sports betting market are mainly investing in collaborations, research & development activities, and product innovation to strengthen their presence in the sports betting market.
- Key vendors operating in the global sports betting market include
- Bet 365 Group Ltd.
- GVC Holding plc.
- The Stars Group
- Paddy Power Betfair plc.
- William Hill plc.
- Fortuna Entertainment Group
- Betfred Ltd., mybet Holding
- Hong Kong Jockey Club
- Kindred Group.
Global Sports Betting Market: Key Developments
Key competitive players in the sports betting market such as Bet 365 Group Ltd, GVC Holding plc, The Star Group, Paddy Power Betfair plc, and William Hill plc are strengthening their overseas sales structure by increasing their product portfolios for multiple applications.
Some other key developments in the sports betting market are as follows:
- 888 Holding plc is emphasizing on improving its B2B offering by providing end-to-end solutions, encompassing technology, operations, and advanced marketing tools in both, regulated and newly regulating markets. The company is also focused on exploiting opportunities and expanding online betting in regulatory markets.
- In April 2018, The Stars Group acquired U.K.-based Sky Betting & Gaming for cash and stock worth US$ 4.7 billion. The company promoted itself by launching innovative digital campaigns such as ‘Stars £100 Million Challenge’ in the 2018 FIFA World Cup to attract end users.
- Companies such as The Betway group, William Hill plc, and Betfred Ltd are gaining popularity through the marketing strategy of brand sponsorship in supporting multiple mega sports events. In addition, these companies are promoting their products and services through celebrity endorsements.
In the global sports betting market report, we have discussed individual strategies, followed by company profiles of players active in sports betting. The ‘Competitive Landscape’ section included in the sports betting market report provides readers with a dashboard view and company market share analysis of key players operating in the global sports betting market.
Sports Betting Market – Introduction
Transparency Market Research (TMR), in its latest study, brings to the fore crucial insights encircling the sports betting market. The business asset aims at equipping stakeholders in the sports betting market with distinguished information, and aids them in devising sustainable growth strategies for the future.
This exclusive report offers a comprehensive analysis of the changing dynamics of the sports betting market, which comprise the drivers, restraints, opportunities, and threats. The study also comprises an in-depth SWOT analysis of the sports betting industry, which will help readers in gaining a clear idea of the sports betting market over the course of the forecast period 2019-2027.
The study includes Porter’s Five Forces Analysis with a view to present key growth strategies to the stakeholders of the sports betting market. The market study also comprises key trends and notable developments that influence the growth of the sports betting market during the forecast period of 2019-2027. The study also offers in-depth information regarding the competitive landscape. The report provides information on the key competitors in the sports betting market, and includes their key strategies, financials, and products that can help stakeholders in gaining valuable insights into the sports betting market.
Since the sports betting landscape functions amidst regulatory framework, the report comprises country-wise legal framework. The sport betting market analysis has been carried out in terms of value (US$ Bn).
Sports Betting Market – Key Questions Answered
TMR’s business asset presents exclusive insights into the sports betting market, which stakeholders can leverage to have an upper hand over their competitors. Authors of the report analyze the sports betting market and offer data and numbers that can back up the influential trends and developments. The study offers answers to numerous questions regarding key concerns, and some of the questions are as listed below:
- What are the key developments expected to take place in the sports betting market during the period of 2019-2027?
- What are the significant winning strategies for players in the sports betting market?
- Which platform will remain preferable for the end users of the sports betting market?
- What are the key trends shaping the growth of the sports betting market?
- What are the regulatory frameworks to conform to in the sports betting market?
- Which game type will bode lucrative growth opportunities for the sports betting market?
Sports Betting Market – Research Methodology
The research undertaken by our analysts consists of a systematic approach, which consists of a primary and secondary research methodology. For conducting primary research, interviews and discussions were carried out with industry experts, vendors, and distributors. This helps in assessing the information gap prevailing in the sports betting market.
In order to carry out secondary research, paid sources such as Factiva, Orbis, Thomson Reuters, OneSource’s, Business monitor, Frost and Sullivan, Data monitor, Asia Pacific Markets, IBIS World, and Euromonitor were conducted. In addition to this, marketing collaterals, company websites, industry associations, and government statistics were referred to. The insights obtained through primary and secondary research is then validated with the help of the data triangulation method. This helps in obtaining qualitative and quantitative data regarding market segmentation, macro trends, market forecasts, dynamics, and market attractiveness.
Sports Betting Market – Segmentation
In order to offer a macroscopic as well as a microscopic view of the sports betting market, authors of the report have bifurcated the market on the basis of platform, game type, and region. The research report also studies the incremental opportunity based on market segmentation. The key segments of the sports betting market are as mentioned below:
Middle East & Africa