What Is the Future of Sports Betting in 2020
Computer algorithms are the next wave of computer programs being applied to sports betting. Sports betting has become a database of statistics and trends to follow with computer programs and algorithms for support. New insights and better analysis are needed for success. What will the future of sports betting look like by 2020.
- Almost all sports betting will take place online. Bettors will use their smart phones or computers to place bets – in real time.
Smart phone apps are readily available from most of the major Las Vegas sportsbooks and casinos. Estimates of all Vegas sports bets via phone apps is 40%. Bettors like the convenience of betting from home or elsewhere without going to a sportsbook. The sportsbook operators prefer bettors in their casinos but they will take any outside action to increase their handle. The other majority of bettors like the festive atmosphere and other benefits of visiting their favorite casino sportsbook.
- Large tech companies will emerge as mega bookmakers.
The changing landscape of sports betting revolves around digital applications. Tech and media companies like Google and Microsoft are carefully following the laws regarding sports wagering. When businesses that make billions from digital platforms jump into the sports betting industry, you can assume the entire landscape is set to change. If the innovations that tech companies bring to other industries is any indication, the sports betting world will witness some significant changes. They will compete against established U.S. and international sportsbook operators and likely force these operators to compete in new and innovative ways to increase market share.
While predictive technology is gaining ground, it may be a few years to implement a global sports betting network. With tech companies entering the sports book making world, who knows what new advantages or profit making techniques they will provide. It is all in the algorithm as the new saying goes. Sports analytics is more refined with better detailed information.
- Sports leagues will profit directly from legal sports betting activities
The majority of pro leagues are favoring online sports betting and are beginning to understand ways to increase profits. League officials have already partnered with gambling-related firms and data companies to create opportunities for shared profits. Adam Silver, NBA commissioner, has provided his support for legalized betting and his willingness to work with companies that operate mainly through legal loopholes. The NHL approved their latest franchise expansion team in Las Vegas, Nevada. The Las Vegas Golden Knights is a big success within a legalized sports betting environment. The NFL is allowing the Oakland Raiders to move their franchise to Las Vegas and their new stadium by 2020.
The NFL is against legalized sports betting but the league approved the Raiders move to Vegas with the legal wagering atmosphere. The NFL has their lofty image to portray to the public and will probably not be a part of any shared gaming revenue. But other leagues around the world will be part of a shared sports betting consortium to distribute fee based revenue in partnership agreements.
- The U.S. online sports betting market – post-legalization – will be the largest in the world and will energize the entire global market of sports betting.
This year, 97% of the 4.5 billion bet on the Super Bowl were placed illegally. This is nothing new as detailed investigations by The New York Times and Congress shows how bookmaking sites operate in the U.S. under the legal radar.
The U.S. Congress has begun reviewing federal laws regarding gambling and will likely introduce legislation relating to online sports betting. The US Supreme Court has delayed its ruling on the federal ban on sports betting outside of Nevada, Delaware, Montana, and Oregon. New Jersey sued to overturn the ban for its Atlantic City casinos and horse racing tracks to offer sports wagering.
Even though sports betting is widely legal around the world, a legalization bill by the U.S. Congress will shift the online sports betting universe into a higher gear.
If the legalization does go through, Microsoft already has a patent for real-time bet placing through mobile devices and online sites. The Las Vegas books have a sports betting monopoly and will be the leaders if federal legislation removes the ban for other states to start a sports betting platform. Microsoft will just be another player in the field but their name recognition will provide trust and acceptance.
A widespread fully mature online sports betting market in the U.S. would be the largest such market in the world, according to research from the industry trade publication GamblingCompliance. When the U.S. gets to that point, sports betting will have changed from the way bets are placed, what games and events are the most popular to bet and who is taking the bets. More sports data analytics service providers will support bettors with in-depth handicapping tools.
“Providing a mechanism for a state to legalize [sports betting] doesn’t have to be rocket science,” said Sue Schneider, an industry veteran who has testified before Congress and consults on gaming issues. “The rest of the world has been doing this successfully for decades. We just need to look around to see the best practices”.
- Pro sports leagues want public bettors
The NFL, NBA and NHL have deals with Sportradar, a Switzerland-based conglomerate that is the parent company of Betradar, a major player in the global sports betting industry. Major League Baseball has partnered with Genius Sports, a multi-faceted gambling data firm located in London. Even the NCAA has a commercial affiliation with Sportradar, with the Pac-12 conference using the services of CG Analytics, a subsidiary of a prominent Nevada sportsbook.
These partnerships represent a profound shift in the leagues’ position on line monitoring, the task of tracking gambling data in an attempt to identify unusual moves or unnatural money. The integrity of any sport is a major reason to oppose regulated sports betting.The ability to track statistical data and closely monitor sports through high tech software is prevalent. The old style concerns were relevant a few years ago but have faded with the high tech digital watch dog techniques. It will never be 100% foolproof but is a great deterrent.
With better safeguards in place to counteract any suspicions, the sports betting industry is becoming more self-regulatory.
While the leagues’ stances are shifting gradually, experts say legal sports betting is still years away from arriving at your local casino or mobile phone. It could be legal by 2020 but the betting platforms need to beta test and gain acceptance. The legal betting structure in Europe is well established and Las Vegas is the best platform in the world to learn from and implement.
While business is booming, Nevada remains a small portion of the enormous American sports betting pie. Experts estimate more than 90 percent of all sports betting in the U.S. takes place outside of Nevada, mostly through offshore sportsbooks located in the Caribbean and Central America. That behavior must change if the U.S. market is going to fully mature, but moving bettors from the unregulated market to a newer legal one is difficult but a welcome change.
There are dozens of online books, the largest handling more than a $1 billion a month during football season. The offshore industry has evaded U.S. laws and continues to serve America’s thirst for sports betting without the added costs of regulation. It is going to take more than just offering competitive odds for a new regulated market to hurt the established offshore market.
The offshore operators will remain very competitive with their menu of bets, props and live betting. I see a much better variety of bets with off-shore accounts especially their extensive live betting options. It is superior to any Vegas book offering live betting. Off-shore operators will continue to thrive if US approves legalization. Besides, off-shore books will be legal like any state operator and will have a better market position. US bettors will probably double or triple in volume if legaliztion happens. Off-shore books might lose 30 to 40 percent of their American base, but bettors can mix and match to find their betting zone between the states and off-shore.
- A global sports betting network will be a great hedge for all sports bettors
An open betting policy on a global platform is the future of sports betting. The United Kingdom is at the forefront of sophisticated online betting software and the array of betting options available. The UK had an open door policy for US bettors to join and place bets on US sports using the popular Neteller clearing house for fast and cheap money transfers.
My accounts with spread betting operator Sporting Index and the Matchbook Exchange was a great betting experience. This happened before the 2006 Port Security made it illegal for Neteller and UK betting operators to accept US bettors. Our government crackdown and threats caused Neteller and UK betting providers to close shop to all US bettors. They lost around 50% of their online business. A complete travesty as our politicians attached the illegal gambling act onto the Port Security Bill. One had nothing to do with the other, but Bush had to sign it to look good.
A legal sports betting environment will subdue the barriers of the past and upgrade the future of sports betting with global interaction. The betting options and hedge positions will be numerous with bettors comparing fixed odds betting in the states with spread and exchange betting in Europe. Global peer to peer betting action will play a large part of the sports betting industry. Bettors will be using Bitcoin or Litecoin to bet directly with other bettors.
You will be amazed how many opportunities for bettors to learn and participate in the emerging sports betting industry. The market upgrade potential is serious money beyond the half-trillion mark and the time has come to make it legal and regulated. The sooner the better !!