Global sports betting, lottery market size jumps 13% to $194.63bn in 2021

Sports betting and lottery, the activity of predicting sports results and placing a wager on the outcome, witnessed a global market size jump of 13 percent to $194.63 billion in 2021, up from 2020 figure of $172.89 billion, according to a new analysis by Safebettingsites.

In a related development, e-sports audience, a multiplayer video game played competitively for spectators, typically by professional gamers, is set to surpass 530 million before the end of this 2022, the analysis further predicted.

However, another study by ReportLinker said the current global market of sports betting and gaming is worth $443 billion, with revised projections that this number will reach $647 billion by 2027, growing at an annual rate of 5.6 percent.

In Nigeria, with a population in excess of 200 million, betters spend some N2 billion each day on sports betting. This amounts to about N730 billion yearly.

Edith Reads, Safebettingsites investments lead, attributed this growth to several factors, key among them is the sector’s resilience post-COVID-19 crisis.

“The epidemic led to the grounding of sports activities globally, resulting in lost revenues. In addition, containment measures such as capping numbers in public gatherings led to dwindling business for brick-and-mortar betting facilities. But the sector has bounced back robustly from those shocks to set the ground for further growth,” Reads said concerning the finding.

Barring the pandemic-induced shrinkage, the global sports betting and lottery market has been growing recently. The increasing shift towards regulated sports betting and lotteries is a major driver of the growth. Many countries are legalising these activities, which has increased the number of people wagering on events and games.

Another driver of sports betting and lottery has been the rapid expansion of the digital age. With more people spending time online, there is a greater demand for activities they can enjoy from the comfort of their location. This and the growth of mobile devices have helped to drive growth in the sector.

In Africa, a continent described as the home of young people, owing to over 60 percent of its 1.3 billion people mainly youths, with outpacing digital expansion, $5.5 million daily wagers on sports take place with Nigeria said to account for about $2 million, another survey said.

Again, the increasing popularity of e-sports has helped fan the growth in the global sports betting and lottery market. According to a NewZoo projection, the global e-sports audience will surpass the 530 million mark this 2022. That has heightened the demand for platforms that support betting on such events.

Many analysts expect Blockchain technology to be a major driver of the sports betting sector’s growth. The technology has the potential to revolutionise the industry by making it more secure and efficient.

Similarly, the Internet of Things (IoT) is another major trend that is powering the global sports betting and lottery market growth. Also, Virtual Reality (VR) and Augmented Reality (AR) will also play a central role in the market’s development as they help to create more immersive experiences for bettors, analysts have said.