The sports betting industry has seen immense growth in recent years. As more states legalize sports betting and technology improves access and convenience, this growth is projected to continue over the next several years.
Highlights
● Global online gambling market increased by $21.5 billion from 2016-2021
● Expected to reach $133.9 billion by 2028
● Asia-Pacific sports betting market reached $21 billion in 2021
● eSports betting projected to grow at 14% CAGR by 2030
● Sports betting revenue forecasted to increase 86% by 2028
● NFL is most bet on sport in US with 81% of bettors
● PaddyPower is leading sportsbook site in UK
● Average eSports bet on League of Legends was €32.34 in 2020
● Bet365 ranked 1st leading gambling company for sports betting globally in 2021
Industry Growth and Revenue
The global online gambling market has exploded in recent years. In 2021, it was valued at $61.5 billion, up from $40 billion in 2016 – an impressive $21.5 billion (54%) increase in just 5 years. This rapid growth is expected to continue, with the total market projected to reach $133.9 billion by 2028.
Much of this growth is being driven by the expanding sports betting industry. In the Asia-Pacific region alone, the sports betting market hit $21 billion in 2021. Growth rates are even more impressive in the rapidly rising eSports betting segment, which is expected to increase at a 14% compound annual growth rate (CAGR) through 2030.
Overall sports betting revenue is predicted to raise 86% by 2028 to $114.4 billion globally. The number of sports bettors worldwide is also expected to rise by 4.1 million from 2022-2024.
Factors Driving Growth
While gambling and betting is as old as human competition itself, several factors are responsible for the current impressive growth in regulated sports betting.
In 2018, the US Supreme Court lifted a federal ban on sports gambling outside of Nevada. Since then, legal sports betting has expanded to 33 states plus Washington DC as of 2024. Live coverage of Super Bowl 2022 predicted $7.61 billion would be wagered legally in the US for the event.
The internet and mobile apps have also made betting more accessible and convenient than ever before. Fast secure payment processing empowers the instant gratification people love.
Competitive video gaming has exploded in popularity as audiences connect with skilled gamers. Over 40% of major international eSports events now take place in Shanghai, cementing Asia as the dominant region for the nascent sport. Prize pools have ballooned as viewership expands, further driving interest in eSports betting.
And betting operators now offer an expanding palette of options to entice potential gamblers, from traditional moneyline and over/under bets to in-game prop bets, futures, and parlay wagers. With so many ways to put money on the line, betting is increasingly ingrained into fan engagement.
Betting Demographics
While sports betting has traditionally skewed toward male audiences, there are signs of shifting demographics. A full 34% of sports bettors are now female, according to 2022 data.
The rise of new betting formats like fantasy sports and eSports are credited with driving more diverse interest. For example, 78% of eSports bettors in 2020 were between the ages of 18 and 25 – a young demographic indeed.
There were an estimated 1 million active sports bettors in Mexico alone in 2022, showcasing growth in Latin American markets. And in horse racing obsessed Japan, nearly 197 million bets were placed with the Japan Racing Association over the last decade.
As more betting options emerge for underserved markets like women’s sports and video gaming, these demographic breakdowns are likely to become even more varied.
The Most Lucrative Bets
American football remains the most popular sport for betting, with 81% of American bettors placing NFL wagers. Football generally offers the most lucrative payouts given the riches of the NFL and expensive pay-per-view pricing that raises stakes.
Among eSports games, League of Legends saw the highest average bet of €32.34 in 2020. Lower stakes were placed on CS:GO (€21.41 average bet) and Dota 2 (€20.64), though Dota 2 awarded an impressive $233.6 million in prizes in 2021.
PaddyPower led sportsbook sites in the UK with 6.53% market share in early 2024. While most betting sites struggle to reach sustained profitability, established brands like William Hill generated a staggering $2.37 billion in sports betting revenue in 2015 alone.
Conclusion
Sports betting has proved itself an enormously lucrative and increasingly popular gambling option, evidenced by sustained double-digit growth in recent years. With expanded legalization efforts and new technologies making access easier than ever before, these impressive growth trends are projected to continue in the near future as sports betting becomes more ingrained in fan engagement worldwide.
While risks like addiction must be actively addressed, the sports betting boom has been a windfall for betting operators, sports leagues, teams, and the public coffers funded by growing tax revenue. With so many stakeholders benefiting financially, this gambling niche has earned its place as a staple engagement channel connecting fans to the sports they love.