The global sports betting market is poised for significant growth, with a projected CAGR of 9.2% by 2030, reaching $297,638.20 million. This expansion is attributable to factors such as increased legalisation, adoption of digital platforms, and growing interest in various sports. This article will examine the key drivers of this growth and discuss the implications for the iGaming industry.
Factors Behind the Growth: Legalisation and Regulation
The growth of the sports betting market is primarily driven by the increased legalisation and regulation in numerous countries. This favorable environment allows operators to expand their market reach and attract new entrants. As more jurisdictions legalise sports betting, operators must adapt to different regulatory frameworks and develop sophisticated platforms catering to diverse market requirements.
Digital Platforms and Technological Advancements
The adoption of digital platforms and technological advancements has significantly impacted the sports betting market. Online and mobile betting now comprise a substantial market share, offering convenience and accessibility to bettors. Emerging technologies, such as AI, blockchain, and data analytics, have enhanced user experience, security, and transparency in betting operations.
Recently, in U.S. sportsbooks, we’ve seen several new products, including micro betting, a form of live wagering on in-game occurrences that happen very quickly, such as who will score the next point in an NBA game.
Operators like DraftKings, BetMGM, FanDuel, and other betting behemoths do their best to stay abreast of the latest technologies to provide innovative and engaging betting experiences.
Esports: Main Contributor to Sports Betting Growth
The burgeoning esports industry has significantly impacted the sports betting market. Newzoo reports that the global esports audience reached 532 million in 2022, with projections of 646 million by 2023.
Consequently, esports betting has become a profitable segment within the sports betting market. Eilers & Krejcik Gaming estimates that esports betting generated $1.81 billion in revenues in 2020, with a forecast of $3.56 billion by 2025.
This growth can be ascribed to the increasing prominence of competitive gaming, the establishment of professional leagues, and the rising number of esports tournaments with substantial prize pools. Sports betting operators are incorporating a wide array of betting options on popular esports titles, such as League of Legends, Dota 2, and Counter-Strike: Global Offensive. As esports attain mainstream recognition, they are poised to contribute significantly to the overall sports betting market growth in the upcoming years.
Final Thoughts
The sports betting market is expected to maintain its growth trajectory, with a projected 9.2% CAGR by 2030. The increased legalisation, adoption of digital platforms, and growing interest in sports will remain key drivers of this expansion. To succeed in this competitive landscape, iGaming operators must continuously innovate, embrace emerging technologies, and adapt their offerings to meet the evolving needs of diverse audiences.
