After the return of major sports in the USA, major research companies such as Technavio have conducted detailed research on the impact of the pandemic on the sports betting market. They have given a statistical analysis of the recovery of the sports industry after the hiatus.
Researchers expect the sports betting market to maintain growth according to the report by Technavio. They project growth of approximately 144.44 billion dollars in the next five years. Market drivers such as legislation, mobile platforms, commercialization of sports will drive an 11 percent CAGR during the 2020 to 2024 period.
The Market for Sports Betting During this Pandemic
Most sports have resumed in almost all global locations today. Moreover, some football sports leagues such as the English Premier League have already ended, and players are preparing for the new season. The current market demand for football has been disrupted by health protocols such as empty stadiums across different football events.
The Current State of Play
The demand for sports betting will probably experience inferior growth due to the prolonged infection period. Many businesses in the sports betting industry are already reconfiguring their market structure to align with the new reality that revolves around reduced economic activities. Major football events such as Italy’s Serie A, Spanish La Liga, MLS, have flooded the sportsbooks platforms in the recent weeks. An upsurge of the online betting platforms is already paving the way for the future of sports betting.
Currently, the number of coronavirus cases continue to surge as the number surpasses the 16 million mark. This increase has consequently affected the sporting market as various sporting events remain canceled while others postponed. One of the most significant sports that was to generate millions of dollars to the sports betting economy is the Tokyo 2020 Olympics, which will now take place in the summer of 2021.
Sports Betting Forecasts and drivers of Success
Despite the decline in some industries, some, especially in the online platforms, remain unscathed while others show a positive impact, which shows promising expansion opportunities.
- Increasing mobile consumer and commercialization of sporting
With the increase in the number of people with smartphones, sports betting will likely be culturally accepted in most parts. Current sportsbooks have tapped into this market by operating on mobile responsive sites. Others have invested in mobile sports betting apps that will see the transformation of the sports betting industry in the future to commercialize sporting activities.
- Acceptance of Online Sports Betting
online betting has taken over traditional sports betting. With the pandemic and emergency of online sports, the future of sports betting tilts towards online betting. In the current landscape, online sports betting constitutes the biggest share of sports betting revenue from major sporting events. With the probability of the end of COVID-19 still unknown, the trend may not change any soon.
- Regulatory Landscape for Sports Betting
The regulatory landscape in the USA took the right turn in 2019 as more states legalized sports betting. Colorado passed its betting legislation on May 1st to join the like of Nevada, where sports betting is legal. 2020 was the year for bettors to test the impact of legal sports betting in most states. However, despite the pandemic that has reduced major economic activities in land-based sportsbooks, the future of sports betting looks bright.
On the bottom line
With continued technological growth and internet connectivity in many parts of the world, the emergence of illegal operators poses a risk in the sports betting industry. However, with the right legislation, the annual growth rate of the sports betting industry can surpass the 11 percent projected CAGR. As sportsbooks strive to influence the people’s betting and gaming patterns through social media, they should remember that the sports betting market dynamic.