iGB Intelligence reports | Page 20

Chapter 1 – Introduction 1.2 Growth factors There are many factors that have played a part in the growth of sports betting generally. Television has added a new dimension to the attractiveness of sports betting through the broadcasting of a huge number of different sports events. The second growth factor for betting has been the roll out of faster broadband and smartphones that allow people to bet on second screen devices, give free access to all sorts of sports data resources, and facilitates communication between punters. Regulation has also been an important growth factor (see Chapter 6), although it can also stymie growth if too draconian. In most countries, the regulation of gaming is based on whether the predominance for the outcome of the game lies in skill or chance. Regulations relating to gaming vary from country to country and even by territory to territory in some countries. There has however been a shift in recent years towards licensing of operators in key markets. 1.3 Digital sports betting 1.3.1 Overview The main types of bets available to customers are outlined in Appendix 1 and separate Appendices are provided for Fantasy Sports (Appendix 2) and eSports (Appendix 3) which have grown enormously in popularity since the last edition of this report in 2012. Not only are more people ab le to wager on sports through the internet on their computers, mobile phones and other connected devices than ever before, the amount of information available freely on digital platforms increases the chances of making bets strategically in a way that has never been possible previously. The internet teems with sports information services, sports betting guides, score lines, and fixture lists that are in the public domain. Furthermore, blogs, forums and social networking pages have proliferated that are devoted to sports, offering sports betting predictions and tips and even odds comparison tools. It means that all the information necessary for well-informed betting decisions is at the reach of players’ hands. It is no surprise therefore that betting on sporting events appeals greatly to consumers and is therefore a product that is in high demand. With experienced and knowledgeable digital gaming operators constructing suitable markets, responding to sports-based information and consumer investments, this can prove to be a profitable product, albeit within tight margins. The growth in digital betting globally can be attributed to several factors, the primary ones apart from regulatory issues being the increase in faster broadband and increased mobile penetration (particularly smartphones) and the fact that there are more secure digital payment systems available. Indeed, an examination of the key broadband and smartphone markets globally provide an indication of where sports betting websites and apps are potentially able to flourish based on good technological infrastructure - legal environments permitting of course. Digital Sports Betting 13