The global sports betting market could reach $13,941 million by 2028, according to a new report by provider of market intelligence and consulting services Acumen Research and Consulting. While the market accounted for $6,529 million in 2020, it could more than double that figure by the end of the decade.
The report, posted on Tuesday, attributes the positive trend in the sports betting market to people’s rising affinity for betting, ongoing updates, and technical breakthroughs, including the development of new cutting-edge technologies. Acumen also forecasts CAGR (compound annual growth rate) of 10% for the period of 2021 to 2028.
“The sports betting industry is constantly upgrading, which is empowering this sector and making it comparatively more high-tech, ultimately leading to success and expansion in the upcoming years,” states a press release.
The study finds the global sports betting market is primarily driven by a growing population of bettors, attracted by the lure of easy-earning of money, the rising number of sports betting apps, and a rising inclination of youth across the world in the betting industry.
Moreover, as countries are now enforcing less pandemic-related restrictions than in 2020, the sports betting industry is now coming on track with a new set of sporting events in which to bet. Besides, large-scale advertising on sports betting apps has also “driven a huge amount of crowds” to start betting in the industry.
But two factors could likely curb the growth of the market, Acumen says: growing concerns over illegal betting, and strict regulations for betting. According to the Illegal Gambling Statistics, black market gambling has been estimated to be around $1.7 trillion each year.
However, the firm predicts the advent of 5G technology, along with the application of artificial intelligence and blockchain, could create numerous growth opportunities for the market in the coming years, plus enabling more transparency in the betting process.
Most of the betting is based on the online segment, which accumulated for the maximum share in 2020, aided by the rising penetration of smartphones. Wagering can now take place at home and statewide, instead of only at retail locations.
While now betting allows for multiple types of wagering -in-play betting, fixed odds, exchange betting, pari-mutuel and esports betting, among others-, fixed odds wagering still dominates the market, with the highest percentage of share in 2020.
Although basketball, baseball, cricket, and hockey, among other sports, still remain popular choices, Acumen notes soccer as the sport which has conquered the largest market share so far, while also “likely to register the fastest growth” throughout the forecast period 2021 – 2028.
“The high popularity of this sport worldwide, chances of winning a large sum of money, and extensive opportunities offered by the European region in football betting are the major aspects driving the growth of the market,” said the firm.
Among all regions, Europe “subjugated a lion’s share in the regional scenario,” reads another part of the study. This is due to rising trends in football betting in countries such as Germany, the UK, Italy and Spain, plus the long-lasting popularity of Euro football leagues in the region.
But the APAC sports betting market is anticipated to witness the fastest growth during the forecast period, Acumen says. This is attributed to a growing inclination of the APAC population towards sports betting, yearly events in India such as IPL, and growing urbanization in emerging markets.
