If you have been reading our news articles in the past few months or so, you have surely noticed a trend when it comes to sports betting in the US. The number of states that have legalised this form of gambling is on the rise and there are even more states where an initiative to legalise sports betting has been put forward.
For example, earlier this month we reported that New Hampshire made sports betting legal, whereas last month, daily fantasy sports was legalised in Alabama. Illinois authorities are also considering legalising sports betting, as we reported at the beginning of this month in the Illinois to Legalise Sports Betting article. Massachusetts is another state that is examining the idea of sports betting legalisation.
This time we’re going to have a look at sports betting from a more global perspective. It is a growing market and it appears that is bound to grow even more in the future. Namely, a new study has been published and according to it, the world sports betting market is bound to reach $155 billion in the next five years.
Year On Year Growth About 10%
The report from the study was published by Zion Market Research and according to it, the industry has been growing since 2017. Let’s talk numbers so you could get a clearer perspective of the expected growth. The overall market was worth slightly over $104Bn in 2017, and it is expected to grow to just shy of $155.5Bn by 2024. That means that the compound annual growth rate (CAGR) would be about 8.83% which is quite significant.
The report includes information on the growth of the industry at a global scale, but it also reflects on regions and states, including the largest and/or fastest developing markets, including Africa and the Middle East, BRICS countries, as well as UK, US, Germany, France and Japan.
We already mentioned that the expected CAGR is about 8.83%, but a different report done by Technavio researchers places the figure above 10%.
Mobile Betting Key Factor
The most significant growth factor is due to a reason that we mentioned in the introduction. Namely, a number of US states have already legalised sports betting, mostly due to the fact that the Supreme Court overthrew PASPA, a law which effectively was a federal ban on sports betting.
The report states 888 Holdings as one of the companies that has had a significant impact on the growth of sports betting in the United States.
However, there have been few states that banned or severely restricted sports betting activities in the past several months or so. Namely, Uganda in Africa and Albania in Europe have recently banned sports betting activities.
For now, that is not alarming as there always will be states that opt to reduce the scope of sports betting activities, but if the number of states that do so grows, that might have an impact on the predicted growth.
One of the key contributors to the growth are the technological advantages of the digital era. The rise of online betting, and especially of mobile betting is the key factor here. In fact, while conventional betting is either in decline, or stagnating, online betting, and particularly mobile betting has been growing.