Online Sports Betting Market

Market Overview

The market for online sports betting was estimated to be worth USD 56,650.3 million globally in 2023 and is expected to grow to USD 146,363.8 million by 2032. With a predicted 11.2% compound annual growth rate, Europe is predicted to be the largest contributor to the market, closely followed by North America. Key markets such as the United Kingdom, the United States, and France are pivotal players in the global sports betting landscape. The UK's online sports betting market is anticipated to reach USD 4.56 billion by 2024. The US market, experiencing significant growth and competition, witnessed a 42% increase in 2023, reaching $9.5 billion. To be competitive in this fast-paced and expanding business, major industry firms are connecting with sports leagues, adopting new technologies, and making targeted marketing investments.

In the modern world, sports betting is highly prevalent. A wager or bet is placed on the outcome of a sporting event in the gambling activity known as sports betting. Online sports betting is only one of the many various types of sports betting that are available everywhere. Online sports betting refers to predicting sports results and placing wagers on the outcome of the game of football are involved. Online football betting sites provide the best-in experience with an online sportsbook (a reference book used to track wagers, payouts, and debts) that is safe and secure, providing an honest and reliable platform to bet and earn money. The top online betting website platforms differ slightly in their offerings, providing tools, tips, tricks, and other betting resources.

Market Dynamics

Global Online Sports Betting Market Drivers

Growth of High-Speed Internet Services

Growth in online betting activities is seen worldwide due to the quick adoption of internet-connected gadgets like smartphones and tablets. Gamblers who watch live betting have the chance to make rapid choices that, if they bet well, might guarantee them substantial gains. Thus, live betting streaming on smartphones and tablets will significantly impact the future sports betting market. The development of online betting is expected to cause a significant increase in demand for the global sports betting industry over the projected period. Incentives of many kinds are provided by bookmakers for online sports betting. These consist of rewards for gamers that decide to sign up and make a deposit into their account.

Additionally, they can wager with greater odds, live streaming, and ongoing promotions. This is expected to accelerate the expansion of the online sports betting sector over the forecast period. Trends in the sports betting sector suggest that spectator interest in viewing a range of sports disciplines worldwide is rising. For instance, the average viewership for 83 regular-season NBA games on ESPN, a U.S. cable sports network, was 1,401,000 in 2021–2022, an increase of 16% from the previous year.

Growing Acceptance of Online Gambling

Football's rising profile around the globe has translated to massive wagering action in the online sports betting market. These issues are prevalent in Europe's football-loving nations like Italy, France, and Spain. The internet betting market is primarily used in sports, particularly in football competitions like the FIFA World Cup and the European Championships. In addition, as part of its marketing and tactical expansions, several online sports betting organizations support various teams and leagues. For instance, the Bwin brand increased its network of global sports marketing in Europe in September 2021 by being the official sports betting partner of the Europa League and Europa Conference League of the UEFA. Since bookies now provide a more comprehensive range of betting markets and products, most football wagers nowadays are done online. There will likely be more than 100 betting options for every football game. Online sports betting is becoming increasingly popular worldwide, driving market growth.

Global Online Sports Betting Market Restraint

Increased Negative Effects on Mental Health and Restrictions on Online Gambling 

Users' mental health is suffering due to the increased popularity of online gambling. Their growing addiction tests the user's ability to maintain mental equilibrium to widely accessible internet-based gambling sites. The number of suicides has been rising year over year as a result of this addiction. The Tamil Nadu State Government prohibited gambling websites in 2020 after noticing increased incidents of escalating gambling debts. Pathological gambling, sometimes called compulsive gambling, is one of the other impacts of addiction gambling. The long-term repercussions of this type of gaming might bring on chronic stress and hypertension problems.

Additionally, several nations have outlawed gambling websites due to the elevated risk of pathological gambling behavior. Several countries, including Russia, the UAE, Qatar, and Poland, have banned gambling. For instance, the Telecommunications Regulatory Authority of the UAE regulates internet activity and content, blocking access to online casinos. Furthermore, certain nations, like India, Singapore, Japan, and others, will likely outlaw the gaming sector. All of these considerations are anticipated to hamper the market expansion.

Global Online Sports Betting Opportunities

Growth of Live E-Sports Coverage Platform

E-sports have seen a substantial increase in viewers and revenue. Increased revenue was the key motivator, not just because those viewers were earning money but also because of the growing audience. As brands see the opportunity to directly or indirectly reach a vast and engaged audience, they are becoming involved in e-sports marketing. The sector's popularization has contributed to e-sports investment and income increases. In addition, the social aspect of live broadcasting and gaming is one of the critical elements in e-sports' popularity.

Through video game-specific streaming platforms like Twitch and YouTube Gaming, fans may communicate with players and teams directly, while more popular social networks have helped to cultivate these connections. Some e-sports teams, like FaZe Clan, are aggressively diversifying outside of e-sports, such as into the goods industry, which helps to increase brand awareness. Thus, the growth of live e-sports coverage platforms is anticipated to create lucrative opportunities for the global  market to expand.

Regional Analysis

Based on region, the global market is divided into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Europe Dominates the Global Market

Europe is the highest contributor to the market and is anticipated to grow at a CAGR of 12.3% during the forecast period. The growing sports spirit and the zeal to watch sports are increasing daily in Europe due to new game formats and modes. It has been a large market for players and industries such as gambling and betting to place bets and enjoy. Since the 1800s, Europe has had the presence of gambling and betting, but it has evolved to the next level in recent years. Due to the growing adoption and development of smartphones, it is now simple to use and play on the platforms provided by gambling businesses. Some of the famous players of Europe are Bet365, Betsson Group, Entain, Kindred, and William Hill. In addition, many of these players operate locally and internationally, which has helped the people of Europe procure jobs as the industry has generated almost 43,000 jobs in the region. The companies have invested in their platforms to make them safe and reliable for users.

Asia-Pacific is estimated to grow at a CAGR of 14.9% over the forecast period. The continent is home to a growing population of over 4.6 billion people, and many different cultures inside the region are attracted to an increasing number of sporting events. There has been a growing ability to access online betting sites in countries where sports betting is heavily or even banned. The ever-increasing widespread use of VPN software has allowed those who have previously been unable to bet to have a safe entry. Not only has this become a trendy way for players to access any regional sites, but it also has allowed them to access and play on international sites. These factors are expected to drive market growth.

In North America, demand in the region is projected to be fueled by rising digitization and secure mobile solutions. Three US states—Nevada, Pennsylvania, and New Jersey—all have gambling laws, and these laws are what are fueling the need for sportsbooks and betting applications. For instance, Entain PLC introduced "Gambling Responsibly America," a responsible gambling app, in July 2021. RG24/7 and EPIC Risk Management collaborated to create the app. Customers who use the app will have access to tools for assistance and education and tools to assist those who may be having problems with gambling.

South America is anticipated to have considerable market expansion over the forecast period. The focus on gambling sector regulation in nations like Colombia and Argentina encourages investments in online gaming. Early adopters of online gambling laws, Colombia is predicted to control the majority of the regional market. In addition, the Middle East and Africa will see consistent growth throughout the forecast period. Online betting is predicted to increase in the area due to the rising demand for cell phones and online gaming.

Segmental Analysis

The global online sports betting market is segmented by type and sports type.

Based on type, the market is divided into line-in-play, fixed old betting, daily fantasy, e-sports, exchange betting, spread betting, and others.

The line-in-play segment is responsible for the largest market share and is anticipated to grow at a CAGR of 12.0% over the forecast period. Line-in-play or live-in-game online sports betting refers to live betting while the game is still running and bettors are open to placing their bets. Bettors can put on their wagers as the game progresses, attracting those impulsive bettors, posing a high risk of volatility of losing money, and creating a series of bad-line opportunities.

Online gaming platforms are flourishing with the rapid technological developments in hardware and software components. The live streaming of gaming events and tournaments has also gained traction in eSports betting. Players compete over their computers and gaming consoles, playing over the internet, attracting a large audience and online betting platforms. Some eSports games include Battlefield, Dota2, Call of Duty, Counter-Strike Global Offensive, PUBG, and World of Tanks.

Based on sports type, the global market is segmented into football, cricket, tennis, baseball, volleyball, basketball, hockey, horse riding, boxing, golf, racing, and others.

The football segment owns the highest market share and is expected to grow at a CAGR of 12.20% over the forecast period. Some popular teams in online football betting include NFL (National Football League), Canadian football, Manchester United Football Club, Premier League, Manchester City Football Club, Chelsea Football Club, and Juventus Football Club. The football sub-segment is divided into FIFA, Premier League, UEFA/EURO, and others. One of the most important events for football and gambling fans is the FIFA World Cup. Online sportsbooks provide insights through historical data to make wise decisions over bets. The FIFA bets are mainly categorized into moneyline bets, outright bets, in-play bets, accumulator bets, and special bets. Premier League betting sites provide a broad range of markets, offering free bets and promotions, regular accommodations, secure payment transfers, and access to mobile phone applications.

Compared to the FIFA Club World Cup and regular league premierships, the UEFA Champions League is among the most prestigious club football competitions. This tournament intrigues internet bettors because it provides many opportunities to put and win bets. Numerous online platforms offer betting options, good bonuses, and wager types such as outright winners, the number of goals scored by a team, goal scorers, and score margins. The football leagues included in the others segment include Super League and La Liga.

Cricket has been a top-played game and viewed games across the globe. It is the most popular game across England, India, and Australia, giving birth to many tournaments, sponsorships, broadcasters, players, and online betting. Cricket is an easy-to-play game that has also gained popularity in online betting platforms. With the advancements in technology, the game has gained traction with several viewers, rising daily. Furthermore, the segment is growing with the top cricket tournaments, such as the Cricket World Cup, across different formats, such as T20, One Day International (ODI), and Test Series.

Some of the cricket betting markets include tournament winner, top batsman/scorer, top wicket-taker, to win the group, to finish bottom, match winner, draw no bet, leading opening partnership, to win the toss, Top batsman in each team, the man of the match, how the first wicket of the game will fall, team to score most fours/sixes, to score a century/half-century, the first ball of the day, and among others. Cricket betting is complex due to its many players, broad tournament formats, and many teams involved.

Recent Developments

• January 2023- Kentucky lawmakers introduced a new bill to legalize sports betting and online poker.
• January 2023- According to IGaming future, SIS (Sports Information Services), the leading multi-channel supplier of 24/7 live betting services, signed a deal to integrate its offering onto the platform of leading global provider BetConstruct, starting with its 24/7 Live Racing Content.

Online Sports Betting Market Share

Major competitors are chasing a substantial portion of the industry's rising profits in the dynamic and highly competitive global online sports betting sector. Consumer preferences have changed, resulting in 86% of sports bets being placed online, driving this rise. Significant companies actively participating in this competitive market include Betsson AB, The Stars Group, William Hill Plc, and 888 Holdings Plc. In North America, the legalization of online sports betting in various states has intensified the competitive landscape. Established brands and new entrants are fiercely competing for a portion of the growing market. 

DraftKings and FanDuel, the most popular platforms among U.S. bettors, collectively cater to over 70% of the market. DraftKings holds a notable 32% of the online sports betting market, positioning itself as the second-largest sportsbook in the U.S., following FanDuel with a dominant 45.1% market share. Meanwhile, market leaders like Betfair and Betsson have strengthened their positions in Europe, where online sports betting is more established. There is a growing rivalry in the Asia-Pacific region as domestic and foreign businesses strive for dominance. Gaining a competitive edge depends heavily on technological innovation, with businesses devoting substantial resources to creating user-friendly platforms, incorporating cutting-edge analytics, and exploring cutting-edge technologies like blockchain and virtual reality to improve the betting experience overall. Consumers worldwide find the frictionless online experience highly appealing, which drives the industry for online sports betting to continue evolving and growing in new geographical areas.