Esports betting has become one of the fastest growing segments in the global sports betting industry in recent years. Sports betting is a very popular type of gambling that involves predicting sports results and placing a wager on the outcome and there is a wide range of sports betting available in the market. Some of the most popular games that involve high betting are football, horse racing, cricket, basketball, greyhound racing, baseball, and golf. Betting on Esports does not fit into this category, instead, betting on Esports refers to betting activities for the competitions of online games, which is gaining increasingly popularity among younger generations.
Global Sports Betting Industry Overview
With the digital revolution bringing sports betting from brick and mortar stores to online platforms and the ease of government regulations on gambling, the sports betting industry is undergoing dynamic transformations and consequently surging in popularity around the word. The global sports betting industry currently occupies the major market share in the overall gambling industry, accounting for more than 40% of the worldwide gambling revenue generated every year. According to the latest market report from Technavio, the global sports betting market size will grow at an impressive CAGR of over 10% from 2019 to 2023, with the global sports betting market revenue expected to reach nearly USD 370 billion by 2022.
The market has witnessed a growing number of countries that are legalizing sports betting, allowing the sports betting industry to maintain its strong growth. For instance, the Government of Singapore has relaxed laws related to online gambling. Similarly, betting is legalized in almost eight states in the US. This increasing legalization of sports betting is expected to create new growth opportunities for market vendors over the next five years.
Moreover, the legalization of sports betting will increase the number of viewers of sports events, which will benefit sports associations, clubs, and organizations. Sports associations and organizations can charge high fees on broadcasting rights and increase their revenue through ticket sales. Thus, the legalization of sports betting will significantly drive the growth of the market at a CAGR of over 10% during the forecast period.
In addition, the global sports betting market has also witnessed a growing adoption of various technologies such as blockchain, virtual reality, artificial intelligence, and machine learning tools. These technologies have led to better betting efficiency and highly promising results in prediction, therefore facilitating the involvement of both sports betting companies and bettors.
Esports Betting is One of the Fastest Growing Segments in 2019
The growth of the Esports market will be attributed to the growing popularity of online competitive gaming and professional gaming. The number of Esports enthusiasts is growing globally, and the 2022 Asian Games in China is expected to include Esports as an official medal sport, which is expected to provide a massive boost to the global esports industry.
With rising global interest, more and more companies are seeing esports as a viable way to promote their products and brands, as the platform allows them to reach a large audience and target specific demographics. This influx of sponsorships and advertising revenue will further propel the global esports industry.
As the popularity of esports continues to rise, esports betting is also gaining huge tractions around the world. According to research done by NJGames.org, the total amount bet on esports competitions is expected to jump from USD 5.5 billion in 2016 to USD 12.9 billion in 2020, marking a significant increase of 134% in just four years.
In countries where betting is legal, such as the UK, the US, Australia, Mexico, and Brazil, esports betting is extremely popular. An increase in esports betting leads to an increase in viewership of esports events, resulting in more ticketing revenue for the event organizers. The legalization of betting activities is expected to act as a catalyst for revenue generation among esports vendors through an increase in viewership over the near future.
Check Technavio’s Global Sports Betting Market Report 2019-2023
Check Technavio’s Global Sports Betting Market Report 2019-2023 for more information about the global sports betting market. This market research report provides the latest market size and market development for major market segments in terms of product types and regional market landscape. The report contains detailed market trends, market drivers, market challenges and key opportunities. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report.