The online sports betting market involves betting on various sports including football, basketball, baseball, hockey, cricket and others through online platforms. Online sports betting is gaining popularity due to convenience and comfort offered to bettors as they can place bets while sitting at home through their mobile phones or tablets. The market is witnessing high growth owing to rising popularity of e-sports. E-sports involves competitive video gaming where professional gamers compete against each other. Some of the popular e-sports include League of Legends, DOTA 2, Counter-Strike: Global Offensive, Overwatch and others. Rapid growth of e-sports and rise in the number of e-sports tournaments and leagues is driving the demand for online sports betting for e-sports events.
Global Online Sports Betting Market is estimated to be valued at USD 50.13 Bn in 2024 and is expected to reach USD 89.28 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031.
Key Takeaways
Key players operating in the online sports betting market are 888 holdings PLC, Entain PLC, BET 365, Betsson AB, Flutter Entertainment PLC, Draftkings Inc. , Kindred Group PLC, 1XBET, 22BET , Sportpesa. These players are focusing on strategic partnerships and collaborations to expand their reach. For instance, in 2023 Sportpesa partnered with Anthropic to provide its customers with a more engaging and tailored experience.
The key opportunities in the online sports betting market include sponsorship of large sporting events and leagues. Major sports leagues and tournaments are open to partner with online sports betting companies. This provides an opportunity for betting companies to gain brand exposure and increase customer acquisition.
The Online Sports Betting Market Growth is expanding globally with companies focusing on entering new regional markets. Latin America and Asia Pacific provide lucrative opportunities for growth owing to increasing internet and smartphone penetration. Players are adopting localized payment methods and languages to target these high growth regional markets.
Market drivers include the widespread usage of mobile phones and easy availability of high-speed internet. Majority of Online Sports Betting Market Size and Trends now takes place through dedicated betting applications on smartphones. This has made betting convenient for users who can place bets on the go. The availability of high-speed internet has ensured seamless operation of online sports betting platforms.
Market restraints include stringent regulations related to gambling in certain countries. While some regions have legalized online sports betting, other regions have placed restrictions or bans. This disparity in regulations poses a challenge for betting companies looking to expand globally. Underage gambling is another concern which is prompting regulatory authorities to strengthen rules around identification and verification of players.
Segment Analysis
The online sports betting market can be divided based on sports. It saw rising popularity and is dominated by soccer betting sub-segment as soccer is most followed and watched sports globally with large fan base and leagues. The events held round the year keeps fan engagement high resulting in more betting on soccer games and events compared to other sports. Within soccer betting, betting on major European leagues like EPL, La Liga, Bundesliga dominates due to popularity and competitiveness of these leagues where most top players and clubs participate.
Global Analysis
North America emerged as the fastest growing regional market for online sports betting due to legalization in new states and copyright launching regulated sports betting market. The USA is expected to dominate North America regional market led by states like New Jersey, Pennsylvania, Indiana where online sports betting was introduced early. Europe currently dominates the global market for online sports betting led by countries like UK, Germany, Spain where sports betting market is regulated for long time and betting on major sports is culturally accepted. The Asia Pacific is projected to showcase high growth potential in coming years with China and India spearheading the growth in the region. Latin America and Middle East & Africa offer emerging opportunities for operators to tap into new regional markets.
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