The online sports betting industry is thriving and is among the fastest-growing industries in the world. Online sports betting is accentuated by the plethora of sports fans that love to watch and bet on their favourite sports. Being one of the most profitable industries in the world, investors have been looking for ways to invest in this lucrative industry and fetch hefty profits for their business. However, the online sports betting industry is held back by the various challenges and obstacles that have been prevalent in the betting industry.
Asia is the biggest market for gambling and sports betting. And according to a Statista survey, almost 50 % of people 18 years and older in the United States have placed a bet on a sports event at least once in their life. Betting makes up about 30 to 40 % of the global gambling market, which also includes lotteries, casinos, poker, and other gaming. The global gross sports gaming/gambling yield amounts to more than 400 billion U.S. dollars each year. (source)
With the advancements in technology, sports betting platforms have evolved to cater to the modern demand of users. However, various problems like technology integration and cyber fraud and theft are still plaguing the online sports betting industry. This blog will shed light on the various challenges of the industry and offer reliable solutions for businesses.
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Types of Sports Betting
In this section, we will discuss different types of sports betting. Some of the sports betting types are comparatively new. Other types have been in the industry for a lot longer, and some of them have even been around longer than the internet itself.
1. Exchange Betting
Exchange betting is comparatively new in the field of the sports betting industry. It has grown in popularity in recent years. A lot of people choose an exchange betting provider to bet or wager on any sport. In exchange betting, there is no need for a bookie. Bettors place wagers against other bettors who are opposite to each other. For example, if you are placing a bet then basically you are placing it against the other user who is playing against you.
2. Fixed Odds Sports Betting
Fixed-odds sports betting is one of the conventional forms of sports betting. Most people are also familiar with this type of betting compared to others. In fixed-odds sports betting, both the parties agree on the odds when a bet is placed. Even if the odds have subsequently moved, it is paid out at those agreed odds when a wager wins. It is a very straightforward type of sports betting. Like a gambler wagers on a match or on a team about winning or losing the game.
3. Point Spread Betting
In the United States, point spread betting is so popular, especially for Football. The concept of point spread betting is different from other types of bets. Here a gambler does not place a bet directly on a team or participant about their winning or losing the game. This betting type works on the method of “cover the spread” where a bookmaker will create a spread. By the points awarded or deducted, the size of the spread is determined.
4. Live/In-Play Betting
Live betting or In-play betting is a form of live odds sports betting. In this type of betting, the same method is used to place a wager, there is only one difference between these two betting types. In fixed-odds betting, the wager is placed before the start of the event. But in live or In-play betting gamblers are allowed to place a wager at any time during the event, until the event is about to be over. This type of sports betting game is relatively new but in the market for the last few years.
5. Pari-Mutual Betting
Pari-Mutuel betting is the oldest betting method apart from fixed odds betting. It was developed by Joseph Oller in the late 19th century. By getting frustrated to see the margins that were bookmakers making. He found a better way to place the wager for people. The result was Pari-Mutuel betting, this method removed the need for bookmakers. The working principle of Pari-Mutuel betting is so simple. Even with the involvement of complex aspects, it is a relatively straightforward betting method.
Read more: An Exclusive Guide to Develop an App Like Parimatch- Features, Benefits, and Cost
6. E-Sports Betting
As we all know, E-sports or online betting is the newest type of sports betting. ESports got so much popularity in recent years. The betting is not placed on traditional sports but on a new form of sports which is video gaming. Video gaming has gained huge popularity in recent years. Since the introduction of the internet, a lot has changed. The games on ESports betting is placed are-
- Call of Duty
- Counter-Strike: Global Offensive
- League of Legends
- World of Tanks
Read More: Reasons To Rise Of Mobile Sports Betting
The Challenges of the Sports Betting Industry
With the rise in technology and the popularity of sports betting, it comes with new challenges and adversity. Here we will discuss some problems with the sports betting Industry.
1. Modern Demands
With the coming new generations, now it has become difficult for the sports betting startup to develop new ideas while protecting their existing revenue. We have seen many changes and movements in strategies in many places where sports betting hasn’t been before. In the form of the Millennial, there is a new type of player that came in the form and they have a different point of view regarding what good looks like and whatnot.
2. Building Trust
Having a solid brand identity cut down all the competitors who are facing a lack of loyalty and trust. Because the identity of a brand is extremely important. Without any identity, no business or industry can reach the heights that they imagine. If there is so much clutter in the market, then it is more difficult for a brand to cut out that clutter. A business needs to have the consistency to clear it out so that it can try to build trust among users.
3. Technology Integration
The advancement of technology has become another challenge for sports betting startups. Keeping up the pace with the advancement of technology is a difficulty in today’s time. It is the demand of time to be updated in technology and integrate new features and technologies into the business to attract more customers.
With the growth of the sports betting industry, the chances of fraud get higher. Stolen or fooled identity data is still the biggest threat to the sports betting industry. According to the ThreatMetrix Gaming and Gambling Cybercrime Report, one in every 20 new account creations is fraudulent. One man in England lost nearly 12,000 pounds when fraudsters using stolen identity credentials made 110 fraudulent transactions at an online gambling website. (source)
Each country has its own rules and regulations regarding betting and gambling. There are some countries where gambling and betting are legal and on the other hand, there are some countries where gambling is illegal. It means both sports betting companies and gamblers need to keep a close eye on the recent changes in the regulations. In countries where gambling is legal, betting industries require a domestic license to regulate it.
Read More: Popular Types Of Gambling Games: Know Before Launching Your Betting Business
The world of sports betting is changing constantly. Sports betting is an evolving business. There is a lot of progress to be made in the sports betting industry. Sometimes because of sports betting and gambling, some problems were faced by sports people like people accusing them of being involved in match-fixing. There are some countries where sports betting is not legal like the United Arab Emirates, Singapore, Qatar, North Korea, Lebanon, Cambodia and so on.
Now the feedback coming out for sports gambling is positive. Many sovereignties where sports betting is legal are growing rapidly, their revenues are expanding drastically, and the states are making more money by putting more taxes on these activities. It would be beneficial for the sports betting industry to study trends and try to predict future trends like what will be the most popular in the future and how it will drive the sports betting industry. By analyzing the current trends, sports betting app development companies can enhance the future of sports betting which help the sports betting industry to grow more prosperous and wealth.
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Frequently Asked Questions(FAQs)
Q.1 Is it profitable to invest in the online sports betting industry?
Yes, the online sports betting industry is currently booming and showcases great revenue potential. It is very profitable to invest in this lucrative industry.
Q.2 Do you provide customized Sports betting app development?
Yes, we offer completely customized sports betting app development solutions that are bespoke and tailored to the client’s requirements.
Q.3 What are the challenges of the sports betting industry?
The online sports betting industry is held back by increased cyber security risks and the modern demands of users. Moreover, technology integration is also a challenge that is faced by the industry.