NEW TECHNAVIO STUDY: GLOBAL SPORTS BETTING WORTH $253.3 BILLION BY 2020
Four trends driving a market predicted to grow at a compound annual growth rate of 4.26 percent.
The global sports market continues to offer good potential for operators and investors, according to a new study by the independent research company Technavio, which estimates that by 2020 the international online and retail market will be worth $253.3 billion after maintaining a compound annual growth rate of 4.26 percent.
Ujjwal Doshi, lead analyst at the research firm, says, “Low-cost cross-border service delivery is opening up sports betting markets, which were previously protected by state-regulated monopolies or dominant local operators.”
The easy accessibility to new gambling distribution methods such as the Internet and mobile phones has resulted in the formation of new groups of customers of all age groups, Doshi claims.
With innovation in technology and improving broadband penetration, new entertainment services like live betting are becoming popular, and the growth in televised sports events and increasing global interest in high-profile football and poker tournaments is increasing the passion for sports among the viewers, leading to an increase in the demand for betting.
Doshi and his team have identified four key trends driving the rising market:
• Increasing availability of cash alternatives;
• Growing popularity of US online sports betting among younger audience;
• Increased penetration of international credit and debit card services;
• Shift in consumer gambling habits.
The ascendency of online gambling and its dynamic technologies is exerting a growing influence on all of these trends, motivating more cashless forms of transaction; a wider and younger range of players; new variants such as fantasy sports and eSports; the rise of social networking and gaming; and significantly increased promotion and publicity.