The Business of Sports Betting: How Digital Tech is Taking Over
By Space Coast Daily // April 10, 2021
Sport is always enjoyable. Regardless of whether you’re out there competing, watching from the bleachers, or coaching.
Whatever way you get involved, it’s exciting. In fact, as a testament to the allure of sports, betting has become a rising star on the scene in recent years.
The striking down of PASPA (the Professional and Amateur Sports Protection Act) in 2018 meant that states could introduce their own betting laws.
This has led to a surge of online and offline sportsbooks. From track-based vendors to casino-based bookmakers and online betting sites, the industry has blossomed.
This, in turn, has given people another way to engage with sport.
Alongside playing, coaching, or spectating, they can invest in an event. This creates an extra layer of interest.
For example, as we covered here at www.spacecoastdaily.com instead of just reading about Orlando Magic forward Aaron Gordon wanting a trade, you can think critically about it. Will it affect the team’s chances of making the playoffs?
Could Gordon’s exit make room for fresh talent? As a fan, you’d probably read the story and react emotionally.
Gordon saying that he’s “frustrated” by the franchise, recent losses, and injuries could trigger you.
However, if you approach the story from the perspective of a sports bettor, you might not be as emotional.
Sports Betting Has Become a Burgeoning Business
People tend to think logically when they’re about to put money on something. They weigh up the variables and ask whether X or Y is in their favor. That’s the beauty of sports betting and the reason it’s becoming popular in the US.
Indeed, we only have to look across to New Jersey to see how the industry is growing. Customers wagered $743 million in February 2021 alone.
The previous month saw New Jersey’s sports betting handle top $958 million. Not all of that is total income.
However, when you break it down, operators such as FanDuel and DraftKings are making upwards of $25 million each month.
This surge of interest in sports betting has already started to create some interesting trends. The main one is the demise of in-person betting and the rise of online sportsbooks.
Although it’s not as pronounced in the US as it is elsewhere, we know that’s the way things are going.
We only have to look at the rise of digital technology to see that. Data from www.statista.com shows that there are over 290 million smartphones in the US.
Add to this 87.3% internet penetration and there’s no doubt the US has more people online than ever before.
By that fact alone, internet betting is always going to supersede live betting. For further clarification, we can look to the UK.
Sports betting has been a part of British culture for centuries. Stemming from horse racing but now encompassing a myriad of sports, bookmakers across the pond do the majority of their business online.
Statista data shows that the number of betting stores in the UK has fallen since 2014 from almost 9,000 to just over 7,600.
Further confirmation that online betting is on top comes from the UK Gambling Commission. Stats published on www.gamblingcommission.gov.uk show that “remote betting” accounts for more than 33% of all gambling revenue in the UK.
Specifically, online betting and gaming sites made £5.7 billion/$7.7 billion between 2019 and 2020. Their offline counterparts made £2.4 billion/$3.2 billion.
Growth Leads to Evolution, Ideas, and Innovations
The industry has also evolved to such a point that online comparison sites are necessary. Just as eCommerce sites became so popular that third-party reviewers emerged as a way to guide consumers, it’s the same in the betting world.
For example, www.sbo.net contains reviews, ratings, and comparisons of every licensed UK online sportsbook. The impartial reviews cover everything from bonuses to the quality of the software and betting odds.
The aim is to educate consumers and help them find the ideal site. Why? Because there’s so much choice. On SBO alone there are 275+ bookmaker reviews.
That’s a lot of research for one person to try and do on their own. More importantly, it’s another sign of the times.
Everything about the British sports betting market tells us that online bookmakers will become the dominant force in the US.
That’s not necessarily a bad thing. Online sportsbooks are more convenient because you can access them via your computer or smartphone at any time. They also run regular promotions and there are betting options for every type of sport.
Yes, you lose some of that human interaction and, perhaps, some of the character and charm associated with bookmakers.
However, there’s no doubt the digital revolution has been a net positive for the betting industry.
More people than ever are betting on sports via the internet and that, in turn, is increasing engagement with sports as a whole.
As we’ve said, betting is another way in which people can enjoy football, basketball, golf, and more.
Therefore, as more sportsbooks go online in the US, there’s every chance we could see the popularity of all sports increase.