The global sports betting and lottery market has seen unprecedented growth in recent years, according to a new analysis by Safebettingsites. The UK gaming expert site claims the sector’s market size grew from $172.9 billion in 2020 to $194.6 billion in 2021, a jump of 13%, with projections indicating further growth to $231 billion by 2022
Safebettingsites’ investments lead Edith Reads has attributed this growth to several factors, among them the sector’s resilience post-COVID-19 crisis. “The epidemic led to the grounding of sports activities globally, resulting in lost revenues. In addition, containment measures such as capping numbers in public gatherings led to dwindling business for brick and mortar betting facilities,” Reads noted in her analysis. “But the sector has bounced back robustly from those shocks to set the ground for further growth.”
Bar the pandemic-induced shrinkage, the global sports betting and lottery market has been growing recently, the site claims. A major driver of that growth is the shift towards regulated sports betting and lotteries: many countries are legalizing these activities, which has increased the number of people wagering on events and games.
Another driver has been the rapid expansion of the digital age. With more people spending time online, there is a greater demand for activities they can enjoy from the comfort of their location. And as more people use their phones or tablets to bet on sports or play lotteries, the demand for mobile-friendly platforms has grown, having helped to fuel the growth of online gambling options.
Safebettingsites also credits the increasing popularity of esports as having also helped to drive the growth in the global sports betting and lottery market. According to a NewZoo projection cited by the site, the global esports audience will surpass the 530 million mark in 2022 – that has heightened the demand for platforms that support betting on such events.
The analysis suggests that the sports betting and lottery market is poised for further growth. “New technologies will drive innovation and excitement in the sector, increasing opportunities for punters and investors,” it reads. Among novelties to gain a footprint, analysts expect Blockchain technology to be a major driver of the sector’s growth. “The technology has the potential to revolutionize the industry by making it more secure and efficient,” Safebettingsites says.
“The Internet of Things is another major trend that is powering the global sports betting and lottery market growth,” the analysis also states. “The industry can use IoT to improve the efficiency of betting processes by connecting devices faster and efficiently.”
Finally, Virtual Reality (VR) and Augmented Reality (AR) will “also play a central role” in the market’s growth, according to Safebettingsites. These technologies could help to create” more immersive experiences” for bettors. Investors can use both to create realistic 3D environments for players to bet on, providing more markets to explore.
While there are discrepancies in the precise figures, many new sports betting analyses and forecasts predict the global market is set for further growth. A recent study by Delaware-based market intelligence company Transparency Market Research states the global sports betting market is expected to rise at a CAGR of 9.8% from 2022 to 2023, with the industry estimated to attain value of $653.5 billion by 2031.
“It is anticipated that the growing popularity of sports across the globe will propel the market for sports betting,” that firm’s analysis claims. “The proliferation of the internet has raised traffic to some of the top sports betting websites across the globe. In order to draw sports fans to betting, businesses in the industry employ aggressive marketing techniques including risk-free wagering for a set amount of time and sign-up bonuses for new customers. [...] Such promotional measures are expected to fuel sports betting industry growth in the forthcoming years.”