Why is Sports Betting on the Rise?

Super Bowl

In the wake of the global pandemic and global shutdowns in sports, sports betting is gradually beginning to regain its popularity. AGA (American Gaming Association) data shows that people bet a cumulative of $4.3 billion on Super Bowl LV, which is an absolute record amount. The biggest online sportsbooks registered as many as eight million bets, representing an increase of almost 65% from 2020. Source: wetten.com/us/

College basketball is picking up at an exceptionally impressive rate. After the drop in February, the AGA anticipated as many as 18 million people to turn to sports betting for March Madness this year. The prediction came true, representing a 206% increase from 2019. March Madness was canceled in 2020 because of the pandemic.  

There’s no end to sports betting growth in sight, especially in the US, considering that more and more states are legalizing it. However, the tendency is being replicated in many other countries, which we’ll get to shortly.

The Sports Betting Market: Figures That Impress 

According to Technavio, a global market research report company, the sports betting market will grow by almost $145 billion worldwide by 2025. Online sports betting will account for a substantial portion of that. After the restrictions throughout 2020, the US sports betting market recorded revenue growth of $378 million in January of this year, which was up 174% year on year. January 2021 was a record for sports betting across the country. 11 states reported record betting amounts.

This year, Michigan and Virginia were the two new jurisdictions, which contributed to the impressive data. South Dakota and Tennessee are treading in their footsteps. Before the beginning of the next football season in the fall of this year, they are planning to finalize legislation. This will make sports betting completely legal in their respective territories. In the US, sports betting yield is expected to reach $7 billion by 2025.

The European Market

In 2020, the total gambling revenue in Europe was projected to reach 24.7 billion euros or over $29 billion. Cumulative revenue includes yield from sports betting, online casinos, and online lotteries. France, Italy, Germany, Spain, and the UK had the highest revenue. Sports betting accounted for over 40% of revenue from online gambling in Europe in 2019. Experts predict that by 2024, Europe’s online gambling market will have reached $94 billion.

The Old World may be leading the pack for online gambling globally, but online sports betting is growing worldwide, with other continents following suit. It has become a force to reckon with. Still, this doesn’t necessarily signify the end of traditional betting at land-based venues. In South America, a lot of sportsbooks are still accessible in this more conventional way.

Globally, Macau Leads the Pack

Macau has the highest gambling rates. This Chinese administrative region (province) features just two legal horse racing and sports betting sites. Residents of Macau have access to many globally active bookmakers. American basketball and European football are two all-time sports betting favorites here.

In 2019, North America and Europe both took a back seat to the Asia-Pacific region for sports betting. Experts predict this trend will continue with more and more digital and online betting platforms becoming available in the region.

High Volume

The gradual decline of the pandemic is not the only reason why sports betting is on the rise. It’s always been true that high-volume sports like college basketball attract a lot of fans – and a lot of bets. However, there are hundreds of teams in division one alone, and they’re hard to keep track of. Due to this, there can be some weak lines. Oddsmakers can make mistakes. Smart bettors can profit from the high number of teams and games.  

Action-Packed Season and Odds

College basketball betting begins with an impressive regular season. March Madness isn’t the be-all and end-all of everything. There are many great preseason tournaments in November, for example. Gamblers love the early action. Many of them choose to focus on Duke, Kansas, and other popular teams because predicting the winners in the pack of hundreds of other teams is considerably more difficult. Line makers are well aware of this, which is why it’s hard to get good odds on the favorites.