The US sports betting market is a fast-growing market very much like the Asian and European markets.
As per a Statista’s report, the revenue from sports betting in the US is expected to reach USD 8 billion by 2025 and globally, this figure was somewhere around USD 85 million in 2019. (Reference)
As soon as the Professional and Amateur Sports Protection Act (PASPA) was revoked, several states in the US have opened up and legalized betting on sporting events. Nevada, Oregon, Delaware, and Montana are a few of the states that legalized sports betting early on.
As of May 2020, 18 states in the US have regulated sports betting markets. This represents 30% of the entire US population. Many states in the US have also opened online casinos too.
The revenue growth of this sector attracts new players in this market, thereby snatching away the profit margins of the established players.
Let us have a look at the top four exciting trends in the online sports betting industry:
Earlier, 3G internet connections dominated the online sports betting market. Games were also designed as per the technology of that time. But with augmented reality (AR) and virtual reality (VR) and 5G technologies on the roll, things are changing. Online sports betting provides a better user experience to bettors. Many sports applications are making use of 5G technology to handle low-latency and high-volume interactions in real-time.
Hologram broadcasts and monetization of 5G-enable VR devices are on the cards too and that could open an entirely new segment of monetization via online sports betting.
Options to Multiple Non-Cash Payment Options
The sports betting industry has rewards in the form of physical goods and monetary benefits. With online betting, players now have the option to play with virtual currency too. This helps in reducing the risk associated with cash transactions.
With virtual currency, players can play other online games or even redeem cash.
From the point of view of online game development companies or casino owners, virtual currency and payment options help them to track their customers’ spending history. Isn’t that great? Such datasets can help in enhancing the user experience and optimizing their monetization strategies better.
Changing Consumer Gambling Habits
Rapid internet penetration and growth in the number of smartphone users, are opening up new avenues for online sports betting and making it more accessible and convenient for people to experience it.
As per a recent report, do you know that 9 out of 10 bets are placed via mobile apps?
Do not be. Close to 50% of the US millennials do not like physical casinos, and hence form a significant part of the online game industry in the US market.
People from every generation are spending more time with their smartphones as compared to any other device.
Hence you can see a direct correlation of changing consumer habits in the gambling sector. Even game development companies are now especially designing content in a way that is relevant to mobile users.
Legalized Sports Betting
This is by far one of the strongest propellers for the players in the online sports betting market. Governments in a lot of countries are thinking of legalizing online betting. Developing nations like India and Brazil are land of promising opportunities too outside the US market.
According to a Neilson survey, more than 70% of Americans want to bet legally. As per an estimate, only 3% of the bets were made legal in 2018 in the US.
That means that there is still a huge market that can be tapped as soon as online betting is legalized in all 50 states of the US.
To conclude, growing digitization and internet penetration, legalization of online sports betting, and convenience to play anytime, anywhere, and have safe transactions, are all going to facilitate the online gaming industry.
Commercialization in the sports industry is also attracting sponsorships by various betting companies for major sports across the globe. All these combined together are trends that are here to stay and will shape the future of the online betting market in the coming years.