The sports industry has become one of the important sources of the economy, where sports betting contributed to a great extent. The biggest trends in sports businesses are seen in sports equipment store business, development of sports league management software, sports betting business, etc. Among these businesses, as per the business research, the sports betting business is the most appropriate choice for entrepreneurs and it is also expected to grow by $ 565.4 billion with an annual rate of 5.9% by 2022. Witnessing such rates of growth, various countries are opening arms toward the world of legal sports betting. There are many forms of investments available in the industry, but investors are opting for sports betting software development solutions that result in high returns by greater engagement of betting enthusiasts.
Demographic of sports betting
According to research, generally, young bettors are more interested in sports betting but with the passage of time, it becomes mainstream for every age group. They found it more comfortable to bet.
- As per the research of the American Gaming Association, 69% of sports bettors placed bets in the last 12 months.
- Sports betting is majorly appealing to young males, as per the survey 45% of bettors are aged 23-34.
- As per the statistical records, sports bettors reached 32.8 million along with casual bettors by 18.8 million. The casual bettors bet with their friends, and family on a pool or fantasy league.
- The survey by the association shows 18-30 demographic was raised with the internet and this number is expected to increase in the upcoming time of 2020.
Current Legalizations in Sports Betting Industry
- In the United Kingdom, sports betting became legal in 1960. Other countries like the US are now legalizing sports betting in their economy.
- The UK has the oldest sportsbook in the world and they have the most developed laws regarding the sports betting industry.
- New regulations and rules have been published by the UK gambling commission for determining norms and LCCP (License Conditions and Code of Practices). These norms are meant to be implemented by the iGaming operators for issuing the license.
- The UK gambling association implemented the following plans in their guidelines:
- Increasing transparency standards
- Improving standards for ADR
- Contributing to customer protection by developing better measures
- To get over the gambling harm, voluntary funds are collected by UKGC.
- Delaware and New Jersey were the initial ones in the US to grab the opportunity and generated revenue through sports betting.
- Many of the states in the US analyze the demand for sports betting and redefine their revenue generation model by developing the sports betting industry.
- The US supreme court restricted many states from authorizing sports betting but due to federal law in 1992, the industries got a new opportunity in sports betting.
- According to a legal sports report, there are 13 states where sports betting is legal, and shortly more states will follow them as their legislatures review the bills. These legalizations represent development in sportsbooks in the upcoming years.
- The states that cover the legalized sports betting industry are Delaware, West Virginia, New Jersey, Rhode Island, Pennsylvania, Mississippi, Indiana, etc.
- The gambling authority in Germany published the minimum requirements for licensing for the industry.
- The requirements for licensing include the following areas that must be covered:
- Information regarding applicants and representative
- IT security
- Payment processing
- Minors protection
- Sports betting licenses are granted in Germany from January 2020.
Popular sports covered in sports betting
There are some sports involved in betting that have more gaming enthusiasts than others.
- When betting was not officially legal football was always driven by great betting intent in the US.
- Recently the betting leaders are Football, Basketball, Soccer, Baseball, and Hockey.
- Basketball is considered the fastest-growing live betting category.
- Golf is expected to be popular in the upcoming times as it gives various opportunities to the bettors in the golf tournaments.
- As per the research, NFL Football is the most popular category in the betting industry.
- Betting through mobile apps is another way of betting which is growing rapidly. It is the best betting method that is probably seen in every sports betting.
Future Scenario of Sports Betting Industry
With the increasing demand for betting, the future of sports betting is also increasing. There are the following future possibilities for betting:
Sports Betting Enhancing Global Market
When sports betting was not legal there were 4.5 billion bets placed in the US. This shows that after legalizing betting the operating way of the betting industry will become more efficient and attract more audiences to the industry. It also brings growth to the global market of betting.
Profitability to Sports Leagues
Mostly the sports leagues are partnered with data companies and other companies that are connected with online betting. For developing share profit opportunities sports leagues are promoting the online betting industry. Sports leagues represent direct profit that helps in increasing the overall profitability of the industry.
Online real-time Betting
As with the increasing number of mobile users, the mobile betting industry will increase in the future. People prefer the easiest way of betting through mobile phones through which online real-time betting is expected to grow. This enables operators to invest in online betting.
Scope for operators
As the increasing demand for sports betting will lead to an enlarged audience for existing and new operators in the market. Due to current and expected legalizations, there are possibilities for operators around the world to grab this opportunity. The recent trend and popularity of sports betting can be a better source of revenue generation for the operators.
Increasing competition among High-Tech companies
Well-known companies such as Microsoft are also paying attention to the sports betting industry. The businesses are looking for investing in sports betting for increasing the revenue of the business. The companies are competing with other sportsbook operators and developing a new comparative market in the industry.
The above aspects show the future growth of the sports betting industry. It is highly beneficial for companies to invest in the industry and existing businesses to expand their revenue. While developing a sports betting platform the operators need to consider the following aspects:
- Research of the market and industry
- Analyzing target audience
- Determine the scope of the industry geographically
- Research for reliable betting software providers
- Create requirements sheet
- Get sports betting software
As with the increasing trends of sports betting, the number of investors also increases in the market. Since the countries are legalized sports betting, it is expected that the sports betting industry will increase and attract huge revenue in 2020. As stated above there are many sports available in the industry that are popular in betting. Investors can analyze the future opportunity and can keep betting in the first place for generating huge revenue shares.