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Sports Betting

By Dr. Roger Best and Dr. Dennis Howard

“In time, the expansion of legal wagering will drive fan engagement and in turn viewership and will become a growth category for sports advertising at both the national and local levels.” Eric Shanks, Head of Fox Sports, May 2019

Expansive Sportsbook in Major U.S. Casino

Of all the many ways in which fans engage or experience sport – including attending sporting events, watching them on preferred media platforms, playing video games and fantasy sports –betting on sports has become the fastest growing, and arguably the most impactful way fans experience sport.

Wagering on sports has also become a popular form of engagement. Legal betting on games and matches globally topped $250 billion in 2021, making it the single highest revenue producing segment in the Best-Howard Sports Industry Model. Fans now spend more betting on sports than on attending sporting events. Globally, in 2019 – prior to the COVID pandemic – fans, teams and companies collectively spent $180 billion on staging, promoting, sponsoring and broadcasting sporting events in sports venues around the world.1 In that same year, credible estimates reported the actual legal amount – the handle – wagered on sports reached $234 billion globally.2

“The love affair with sports in the United States is a perpetual and immovable
force with a new, natural and perhaps more powerful teammate in gambling.”PwC Outlook for Sports Market in North America through 2023

It was not until May 2018 that the U.S. Supreme Court ruled that a national ban on sports betting since 1992 was unconstitutional. Less than two years after the court ruling, 21 states had fully implemented sports betting. By 2022, 30 states now allow some form of sports wagering, including 18 that offer online sports betting. The ease and convenience of wagering from home or on a mobile device was particularly attractive during the 2020 COVID-19 pandemic. Analysts predict that within 5 years online betting will account for 75% to 80% of all U.S. sports wagering. Sports betting’s explosive growth has not been limited to the United States. Online gambling’s worldwide market value is forecast to double to $92.9 billion by 2023.3

American’s passion for sports betting, fed by ubiquitous opportunities to wager on live sporting events, has led to sports betting’s soaring popularity. The growth of sports betting in the U.S. accelerated to an all-time high in 2021. The American Gaming Association reported the sports betting handle reached $57.22 billion, a leap of 165% over 2020.4 The record-breaking total was powered by seven new states legalizing sports gambling and the millions of dollars spent by casinos (Caesar’s), sportsbooks (William Hill) and Fantasy Sports rivals (FanDuel and DraftKings) promoting their betting platforms.

LEGAL GAMBLING’S INTENSIFIES FAN VIEWING

Beyond the financial benefits, leagues and teams Insert this list in this space next to the narrative and media broadcasters have found sports betting deepens fan engagement. Not only does betting on
game outcomes increase media viewership, it increases the viewer’s intensity level.5 The NBA allows fans to stream the last quarter of a game for $1.99. The opportunity not only appeals to fans with limited time, but is highly attractive to gamblers interested in final outcomes.

SPORTS BETTING AROUND THE GLOBE

Notable Countries Offering Legal Sports Betting

While legal sports betting is still in its embryonic stage in the United States, it is well established in most world regions. Market research firm Technavio expects the global sports gambling market to expand at an accelerated annual growth rate of 10% from 2020 to 2024.6 Applying the year-to-year growth to 2019’s $233.9 billion handle results in an increase of $142.8 billion in sports wagering worldwide to $376.7 billion by 2024. Online betting will account for most of the growth, with the biggest contribution coming from the rapidly expanding U.S. market. Countries in every world region offer legal, government regulated sports betting. Listed below are some of them. In-depth information on the sports betting format allowed in each country follow the link bellow to Visit Legal Sports https://www.legalsportsbetting.com/

In-depth information on the sports betting format allowed in each country

Visit Legal Sports Betting

The information in this blog was derived from Chapter 11, “The Top 10 Sports Countries,” in The Global Sports Industry, a book by Dr. Roger Best and Dr. Dennis Howard (www.globalsportsinsights.com).

References:

  1. At the Gate and Beyond: Outlook for the Sports Market through 2023, 2019. PwC (www.pwc.com); Changing the Game – Outlook for the Global Sports Market to 2015, December 2015. PwC (www.pwc.com).
  2. Global Sports Betting & Lotteries Industry – Market Research Report, June 20, 2022. IBISWorld.
    (ibisworld.com)
  3. S. Lock, Size of Online Gambling Worldwide 2019-2023, March10, 2022. Statista (statista.com)
  4. 2021 Commercial Gaming Revenue Shatters Industry Record, Reaches $53B, February 15, 2022. PR Newswire 2021 Commercial Gaming Revenue Shatters Industry Record, Reaches $53B (prnewswire.com)
  5. Jon Lafayette, Legal gambling could spur bettors to watch more TV, June 8, 2018. Broadcasting + Cable(www.nexttv.com).
  6. Sports betting market by platform and geography – Forecast and analysis 2020-2024, April 2020. Technavio (www.technavio.com).