How much does sports betting contribute in revenue to the gambling industry?
The gambling industry offers a wide range of products and play options. While some people prefer lotteries, slots, and table games like poker, a growing portion of the population goes crazy for sports betting. Online sportsbooks like Betway receive thousands of fans every day, all looking to explore odds, and stats, and bet on their favorite sports, events, and players. In this post, we look at how sports bettors like you impact sports betting revenue share in the gambling market.
Sports betting market share
The global gambling market is currently worth over $600 billion and is expected to hit $1 trillion by 2030. Putting land-based gambling aside for a moment, the global online gambling sector contributes $85 billion to this figure. Spherical Insights & Consulting predicts it will surpass $160 billion by 2033.
By segment, online sport betting accounts for 65 percent of the revenue earned by the online gambling sector. Worth 55.2 billion, it is by far the most lucrative market in the space, followed closely by casino games like poker, slots, roulette, and baccarat.
Let’s look at how different regions contribute to this revenue.
Sports betting in the US
Sports betting in the US has existed in a legal grey area until very recently. It was only in 2018 that the Supreme Court vacated the federal ban on sports wagering, allowing Americans to bet on their favorite sports. Since then, several states have legalized sports betting, which has seen the sector grow.
ESPN reports that the US sports betting industry brought in $10.92 billion in revenue last year, a 44.5 percent increase from 2022. Compared to the overall gambling industry, which was worth $65.52 billion in 2023, sports betting holds a 24.5 percent market share. What about in the UK?
Sports betting in the UK
The UK is the land of sports. Home to international competitions like the EPL and Champions League, it is naturally a hub for sports betting. In fact, Statista projects that the UK will have 15.3 million active online sports bettors by 2029. At the moment, over 24 million people in Great Britain alone bet on sports both online and in land-based locations.
Revenue-wise, the UK online sports betting market is estimated at $4.56 billion in 2024. This number should grow to $5.68 billion in the next five years. Considering very few other markets are growing at this rate, it raises the question, why is online sports betting so popular?
Factors driving growth in the sports betting industry
The primary reason would be legislation. The US’s 2018 Supreme Court ruling and the UK’s 2005 Gambling Act saw sports betting become a legitimate and legal industry with tax obligations and operational procedures. Given this new lease on life, sportsbooks like Betway have capitalized on people’s established love for risk and sports to build a multi-billion-dollar industry.
But it’s not just the legal frameworks. Like other gambling sectors, the sports betting market is driven by changes in technology. Innovations like 5G internet and AR allow providers to deliver more immersive and exciting betting experiences to players from across the globe, which attracts more bettors and grows revenue. How far can this growth go?
The future of sports betting
As regulatory bodies and frameworks continue to legalize and regulate sports betting, its popularity will definitely grow. New technologies like the Metaverse and VR will also make sports betting more accessible, convenient, and immersive so that more bettors from across the world can access their favorite sports online through top providers like Betway.