The introduction of online bookmaking has seen a huge surge in the industry. Sports betting has always been popular, but the digital revolution has made the practice so much more accessible.
Over time, more countries have opened up to sports betting, both online and in person, and that’s also helped to promote industry growth. But how much revenue does this sector produce, and what impact has it made on the economy?
The economy is the term for a series of activities related to production and consumer consumption. The aim is to deliver a product or service and for it to be sold on to generate income. Analysts consider the global economy as a whole, together with revenue from individual countries and regions.
Each sector of industry has a role to play in generating revenue for the economy and sports betting is no exception.
The biggest change in the sports betting industry saw the United States open its doors. In 2018, the US Supreme Court overturned an earlier ruling which had outlawed the practice. From this date onwards, the decision on whether to allow sports betting was turned over to individual state governments.
Not every state has opened up, but most have legalized online and offline play, and the revenue figures from the US are seriously impressive. Operators are able to build their customer base using generous offers and promotions, like ESPN Bet Virginia are offering a promo code to new customers as an example.
Globally, the introduction of the United States from 2018 onwards has seen a significant upturn in global revenue figures.
The most recent set of reports shows that global revenue for the sports betting industry in 2022 produced figures of $83.65 billion. The study also includes projections for the next few years moving forward, and these are also encouraging.
It’s suggested that, in the period between now and 2030, the Compound Annual Growth Rate of the sector is expected to grow by around 10.3%. Those are impressive figures for any industry, and they underline just what a success story sports betting has become.
While the predictions for the remainder of the decade are positive, there could be factors affecting growth. Cost of living crisis issues around the world, mean that regular bettors may have to cut down on their staking patterns. It remains to be seen whether those growth predictions are accurate but, while there may be challenging times ahead, sports betting has already proved that it can thrive in testing economic conditions.
Strong and Resilient
The revenue figures have shown us that the sports betting sector has the ability to thrive in the most testing of economic times. The global economy as a whole experienced a slowdown following the events of 2020, but sports betting remained resilient.
Ease of access is a major contributor to this phenomenon. There is no longer a need to visit physical betting shops and the majority of bettors now stake in the comfort of their own home. This element of convenience helped sports betting gain a foothold in the early 90’s and it’s helped those figures bloom into the multi-billion-dollar industry that we see today.
Naturally, if consumers are affected by cost-of-living increases then they will have less disposable income. The revenue numbers could be affected, but those projections do not hint at a slowdown any time soon.
The sports betting industry is a crowded one with hundreds of different operators offering accounts to global customers. In such a busy sector, those companies have to innovate in order to stand out from the competition.
Sportsbooks look to provide extra value to their customers via offers and promotions while introducing new elements to betting. Cashback and live staking are just two of the developments that have taken off in the digital era.
In the future, virtual and augmented reality could be a big driver for extra revenue within the industry. By taking bettors into the sporting arena, excitement levels increase, and the Metaverse could have a major role moving forward. All of these new innovations will help to boost revenue and it’s certain that the sports betting industry will be considering the potential here.
The United States will continue to play a major part in the sports betting industry in the short term. Every year, more states open up to online play, and there is an increase in revenue as a result. At some stage, we may reach saturation point when no more states come on board or if the entire country fills up.
Potentially, therefore, there may be a slowdown at some point, but that is likely to come along in the mid-term. For now, the future of the sports betting industry looks exceptionally bright, and the experts continue to point to serious boosts in revenue across the next ten years.