Nov 04 (newsonjapan.com) - The global sports betting market is growing steadily as more people take advantage of digital platforms to place bets.
Furthermore, an increased number of governments are legalizing this type of gambling activity. The popularity of various sports events and sporting disciplines like baseball, cricket, and soccer is vital to the industry.
In turn, this trend helps attract more sponsorships for players, clubs, and teams. Many analysts believe that the elevated commercialization of sports events will also play an integral role in sports betting growth. They predict that the market will grow by $144 billion between 2020 and 2014. This figure represents a compound annual growth rate (CAGR) of 11 percent during the four years.
In the United States, analysts at Morgan Stanley estimate that the local sports betting market is set to generate approximately $7 billion in revenue by 2025. The increase is in line with predictions by other analysts who foresee a rise in the $6 to $8 billion range.
However, experts say the market is tough despite the bullish estimate. Many firms grapple with the high costs of acquiring new customers. On the upside, analysts tip the US sports betting market to outstrip the estimates if all states legalized the activity.
Strategic partnerships
In 2019, the market generated $85 billion thanks, in part, to the participation of several key players. The market benefited from investments in research and development, strategic partnerships, agreements, and collaborations. Research and development activities helped companies improve player experiences on their gambling platforms, including sites like japancasino.live.
Some partnerships announced in the last few years helped companies expand their offerings to deliver attractive sports betting options. The partnerships involved international collaborations in countries like France, Japan, Russia, and the United States.
High-end resorts and casino companies enter into strategic agreements with other leading market players in moves seen as painting a positive picture about the market's prospects. Media firms like CBS Sports are also getting in on the action by partnering with key players in the industry. The agreement involves providing exclusive sports betting content.
Online sports betting on the rise
Online gambling is undoubtedly boosting the overall growth prospects for the industry. Many people are engaging in online betting due to the widespread availability of smartphone devices and faster internet. On the other hand, the introduction of new betting platforms is also augmenting growth.
Meanwhile, forecasts show that Europe is more likely to contribute a substantial share of increased market activity. These improvements come at the back of the increased legalization of betting activities in many European countries.
Japan's lucrative betting market
An ever-increased number of gaming operators are investing in Japan's online betting scene. They are tapping into vast opportunities with the promise of considerable growth prospects. Japan is a mecca of sports betting, notably horse racing. In 2019, the Japan Racing Association (JRA) earned more than 27 billion. A significant increase in the number of active wagers helped boost earnings.
The fascinating part about this lucrative market is the complex regulations associated with gambling in the East Asian country. Sports betting thrives due to the ban on casinos and bookmakers. However, public gambling in activities like motorbikes, horses, and powerboats are open to wagers.
Given this background, Japanese people are exploring online sports betting opportunities to fill the void created by the complex local regulations. In recent years, many online casino operators have entered the fray since land-based casinos cannot operate in the country.
Additionally, many offshore betting platforms are welcoming Japanese bettors to access sports like soccer.
Flourishing market
In the United States, the Supreme Court opened the floodgates for operators and bettors by legalizing sports betting activities starting in 2018.
These changes allowed the market to flourish and have been growing at a rapid pace since the ruling. In the next few years, analysts expect more states to give the green light. Betting operators from different parts of the globe saw a significant rise in waging activities during the lockdowns induced by the novel coronavirus pandemic.
As a result, they enhance product offerings to cater to the needs of a growing clientele. Although Japan's betting scene lags behind the US market, it still generates billions of dollars due to the popularity of pachinko and horse racing. On the upside, the future of betting in Japan looks bright as digital platforms like japancasino.live provide a viable option for wagers.
Signs of a blossoming market are becoming more vivid. Investors are more likely to look at innovative ways to serve the Japanese gambling market. Some operators are lobbying the Japanese government to create an enabling environment by reducing complex regulations.
