OVERALL MARKET INSIGHTS

Total Adressable Market

• According to insights from H2 Gambling Capital, recent year's legal developments in the US have allowed the legal sports betting industry to balloon. "In terms of growth, just by adopting a core US sports focus we have the market increasing 10-fold over the next five years, estimating the US will have a 32-state market generating $8.42 billion in gross win by 2030." David Henwood, director of H2 Gambling Capital, further states,"That’s strong, but it’s still only a third of a total addressable market if all 50 states regulated."
• Based on the H2 data, estimates of the TAM in the US by 2030 equal $25.26 billion.
• Potential pain-point to achieving this TAM include: high tax rates that restrict market size, the slow adoption of mobile wagering, and restriction on supply due to a monopoly-style model, brick-and-mortar-led access or limited product offering.

Market Size

• The proliferation of legal sports betting across the United States is already paying dividends. According to the American Gaming Association, $7.9 billion was wagered at legal US sports books in the one year since the Supreme Court struck down PASPA.
• The total value of the global sports betting market is difficult to estimate because of the lack of consistency in how it is regulated in some parts of the world. Betting makes up about 30 to 40 percent of the global gambling market, which also includes lotteries, casinos, poker and other gaming.
• The total global gambling (including all forms of legal gambling) gross win is estimated at $74.39 billion.
• International sports betting is estimated to have a market capitalization of $250 billion. According to Statista, a highly-reputable data firm, licensed online sports books (like the ones we review) account for upwards of $39.7 billion of this revenue. The rest of these sports bets are staked at venues like casinos, at horse tracks, or other global conduits.
• n 2009, the sports betting market was valued at $20 billion. By 2016, it was valued at $40 billion. With a present market capitalization of (conservatively) between $60-73 billion, the market has conservatively grown at a rate of $10 billion per year. If this pace continues, American sports betting will occupy an increasingly significant share of the world market.
• With a population of more than 4 billion people, it’s of little surprise that the APAC region occupies the most significant percentage of market share in the sports betting industry. It’s estimated that residents falling in the APAC region are responsible for 47% of the world’s sports wagers.
• According to the latest projections from market research firm Technavio, the CAGR (Compounded Annual Growth Rate) is expected to increase by a whopping 8.62% from 2018-2022.
• Though growth may not seem as aggressive or impressive in Australia and Europe, it’s mainly due to a long history of sports betting in these regions. However, sports betting is still growing steadily in these regions.

Popular Sports

• Football (the European kind) has, by far, the greatest betting volume, closely followed by American football. The other big three North American leagues (MLB, NBA, NHL) receive a significant amount of betting volume, too.
• Horse racing, while often categorized as a niche market, still receives heavy betting volume in the US, UK, France, Australia, and South Africa, which are all sizable markets.
• The fastest-growing sports market (with regard to betting volume) is eSports.
• eSports generated over $650 million in revenue, and are projected to create upwards of $1.5 billion by 2020.
• According to a senior analyst at the market research firm Technavio, the increased popularity of esports is pushing bookmakers to allow bets on many different esports matches, now including golf, tennis, and rugby. This growing volume is driving revenue generation across the sports betting industry.
• As esports transform from a budding industry to a more fully-formed, established one, it will generate a significant revenue stream for the broader sports betting market.