Sports wagering has skyrocketed in the last decade due to advances in technology and the loosening of laws around the world. The industry has transformed considerably due to the growing access to the internet, as it has shifted from brick-and-mortar shops to online platforms.
Grand View Research claims that the sports betting market was worth around $93 billion as of 2023 and is expected to grow at 10.1% annually between 2024-2030. This growth is attributed to many different factors, such as the changing laws regarding gambling in different countries and the proliferation of mobile and online gaming.
Specifically, the legal sports betting market in the United States experienced a tremendous surge following the repeal of PASPA in 2018 tourism policies as it gave individual states the authority to regulate sports betting.
Currently, more than 30 states in the U.S. have legalized sports betting, and the American Gaming Association estimates that the U.S. sports betting market will surpass $30 billion in total wagers by the end of 2025. This goes to show the increased acceptance and popularity of sports betting in North America, which has now emerged as one of the most profitable regions for sportsbooks and online betting sites.
Conversely, Europe had developed betting markets with countries such as the United Kingdom, Spain, and Italy, but other regions are now bringing up the rear. In Asia, India and Japan have been some of the most active markets, especially with regard to online betting. As more nations embrace shifting perceptions on gambling, the sports betting industry is poised to become increasingly universal.
Key Markets Driving Global Expansion
Multiple key markets are spearheading the global growth of sports wagering. The U.S. leads North America and remains a primary market due to state-level sport betting legalization and the existence of online businesses.
Top sportsbooks have set up large-scale operations to service the vast market of sports followers who frequently place wagers. The growth is not just limited to mainstream sports such as football and basketball, but also to niche segments like esports, which has seen a boom in North America.
In Europe, the U.K. is leading in both the amount of wagers placed and in the level of development of the regulatory framework for sports betting. UK online operators are efficient as they operate in a highly contestable market with the betting firms offering a wide variety of sports and also providing live streaming of games and multiple payment options that include online casino with easy withdrawal procedures.
This enhanced competition improves the experience of bettors as they can get their funds quickly, which helps create a better experience concerning financial transactions. Moreover, mobile devices can be used anywhere, which facilitates betting while on the go, enabling fans to bet as matches progress.
Japan, India, and South Korea, as part of the Asian markets, are contributing towards the expansion of the industry of online gambling with sports betting. While India has no legal frameworks in place, the online gambling sector is experiencing significant acceleration, with projections suggesting it could reach a staggering $60 billion by 2026.
In Japan, the legal framework for online sports betting received a considerable boost following the Tokyo 2020 Olympics. As a result, domestic companies have started providing multi-sport betting package subscriptions.
The Impact of Sports Betting on Athletes’ Financials
The increase in betting on different sports has had profound impacts not only on the gambling sector but also on businesses. The financial ramifications among athletes are of note. The growing popularity of sports betting is associatively propelling the prosperity of professional athletes. Certain professionals within popular sports have experienced gains as a direct result of the public’s growing interest in gambling on those sports.
The growth of sports betting within the economy has developed a new set of sponsors and advertising partners purely for this purpose. Almost all sports leagues, franchises, and even solo athletes are getting into sponsorship agreements with betting companies. A good example would be the signing of contracts by the National Basketball Association (NBA) with sports betting companies like MGM Resorts and FanDuel.
For these companies, sponsoring teams and athletes opens new avenues of profits. Also, solo athletes started endorsing betting brands. For instance, online betting websites have brought on board NFL quarterbacks like Patrick Mahomes and Tom Brady, thereby making sports and gambling not too different from each other.
In addition to this, the correlation between sports betting and the salaries of players is becoming more significant. As more people are being attracted through sports betting, money paid for advertising via media rights, sponsorships, and even tickets has also increased.
With more and more of these additional resources, the possibility of higher salary limits or caps for the teams and also increased salaries for players becomes a reality. The greater the investments in the sports betting industry, the stronger the impact on the finances available to the players for their earnings.
The wide availability of betting in sports also comes with problems. Its effects on an athlete’s public persona can be problematic. Concerns have been raised regarding the effects of gambling on the integrity of games, as well as issues of match-fixing and other forms of subterfuge. In response, leagues and associations are implementing stronger regulations on the gambling aspects and looking to protect themselves from these concerns.
RELATED ARTICLES
