The sports betting market has experienced explosive growth in recent years. This phenomenon has captured the attention of sports fans and attracted more investors and operators in the iGaming sector.
Revenues in the online sports betting market are projected to reach €61.57 billion by 2028. As for the number of users, it is expected to reach 181.9 million by 2028. This growth reflects an upward trend that seems unstoppable.
In this article, we will analyze the latest trends and factors driving this growth. In particular, we will look at how payment innovation plays a crucial role in the evolution of this market.
The evolution of the different sports betting markets
United States
Sports betting in the United States has undergone a significant transformation following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018. This decision allowed states to regulate sports betting.
Not only that, but it created a huge legal market that captured a considerable portion of the illegal market. In 2023, the industry posted a record $10.92 billion in revenue, according to the American Gaming Association.
Latin America
With a population of 650 million and a projected market of $30 billion annually by 2028, Latin America represents a huge growth opportunity.
- Colombia: In 2016, Colombia regulated online sports betting, growing from 250,000 users in 2017 to more than 5 million by 2023. Soccer accounts for 90% of the plays.
- Peru: Law 31557 came into force in 2022, but needed amendments to obtain the necessary support. It is expected to have a regulated sports betting and online gaming market by 2024. This country has the potential to become the third largest market in the region.
- Brazil: With a volume of US$7 billion in 2023 and a growth of 135% in 2022, Brazil leads the market in the region. With the approval of a clear legal framework in December 2023, even more pronounced growth is expected.
Europe
Europe has a tradition of regulated sports betting, with mature markets and solid legal frameworks. The European market is estimated to reach USD 15.61 billion by 2024. The number of users could reach 43.9 million by 2028.
- UK: With a revenue share of 34.6% in 2023, the UK market is one of the most regulated and mature markets. It is projected to grow by 10.1%.
- Spain: Regulated since 2011, sports betting accounted for 39.77% of the €1,236.75 million GGR in 2023. In particular, Ceuta has seen growth in betting companies thanks to its tax benefits.
- Italy: With permissive regulation for sports betting, Italy has one of the largest market shares in Europe. It is anticipated to grow rapidly due to the popularity of soccer.
Success factors in the sports betting market
Technological advances, the adoption of mobile devices, the growth of eSports and the increase in sponsorship are some of the key factors in the success of sports betting.
However, one of the most important aspects in this context of growth is innovation in payment methods. In particular, the use of digital currencies.
- Fast and secure transactions: The use of digital currencies such as Bitcoin allows almost instant transactions with high levels of security. In addition, they eliminate the long waits and risks associated with traditional payment methods.
- Reduced transaction costs: The fees associated with transactions are often significantly lower thanks to technologies such as Bitcoin Lightning. It results in savings for both operators and players.
- Elimination of chargebacks: Blockchain technology offers irreversible transactions that eliminate chargebacks. This eliminates the challenges that these types of unwanted transactions pose for operators.
ElenPAY: payment innovation for sports betting
As far as payment innovation is concerned, Clovr Labs is leading the transformation of the iGaming market. It offers modern, secure and efficient payment solutions.
ElenPAY, Clovr Labs’ Bitcoin payment platform, is aligned with industry needs and regulations. In addition, it offers multiple advantages to regulated sports betting operators:
- Easy integration: ElenPAY integrates easily with existing payment systems, allowing operators to offer Bitcoin payments seamlessly.
- Robust security: The advanced security protocols offered by blockchain technology ensures that all transactions are secure and reliable.
- Aligned with regulations: ElenPAY is designed to comply with international and local regulations. It ensures that operators can operate Bitcoin legally and in compliance with current regulations.
iGaming operators that adopt these technologies will be better positioned to take advantage of the continued growth and opportunities presented by the sports betting market.
Explore how to implement Bitcoin payment processing in a regulated and secure manner with a personalized demo.
Leave a Reply