Emerging Markets in Sports Betting: What’s Next?

The global sports betting market and gambling industry have undergone unprecedented changes in recent years, with emerging markets fighting to the top as hotbeds of innovation and opportunity. This article will explore emerging markets that have taken advantage of regulatory changes, consumer behavior, and other factors to become pivotal players in the sports betting industry and delve deeper into what could be coming next in the sports betting industry.

What is an Emerging Market?

Firstly, you must understand an emerging market in terms of global economics. An emerging market is the economy of a developing nation or area that is becoming more engaged with global markets as it grows, such as the sports betting market. Countries defined as emerging markets are classified as emerging economies with some, but not every, characteristic of a developed market. For instance, the United Kingdom and sports gambling sites in uk wouldn't be considered as an emerging market, as it is already fully developed.

Africa: Nigeria, South Africa and Kenya

The global gambling scene has seen Africa emerge as a real player in recent years, especially in sports betting, due to the continent's love of sports like European football. Fuelled by a tech-savvy younger generation, countries like Nigeria, South Africa, and Kenya are emerging as hubs for sports betting.

For instance, according to the data and statistics website Statista, Africa has shown a growing interest in online sports betting due to its convenience and accessibility. With the widespread use of smartphones and the increasing availability of internet connectivity, more people have access to online platforms, allowing them to place bets on their favorite sports events like the Premier League, African Cup of Nations, and more anytime and anywhere.

Latin America: Brazil and Argentina

Latin America is a large region, meaning there are plenty of emerging markets within its geography that will play pivotal roles in the future of sports betting. With countries like Brazil and Argentina potentially bringing in regulations and legislation to control and safely manage different forms of gambling, the South American continent is starting to look like one of the most promising emerging markets in the sports betting industry. For example, according to Statista, the betting market's gross gaming revenue (GGR) in Latin America was forecast to increase significantly between 2020 and 2025. In the former year, the GGR from bets in the region amounted to roughly 1.3 billion U.S. dollars. This figure was estimated to rise to 3.4 billion U.S. dollars by 2025.

The region's love affair with sports only seems to be growing more significant, and with some of the world's hottest soccer talents and international teams coming from its shores, this will likely continue. Furthermore, it seems Brazil, in particular, is at the forefront of the sports betting boom in Latin America. In 2021, it was estimated that the gross gaming revenue (GGR) from sports betting activities in Brazil amounted to nearly two billion real. If this market is legalized shortly, the GGR could surpass five billion Brazilian reals by 2026.

Asia-Pacific Region

While the Asia-Pacific region is vast and not all countries within it are emerging markets, some still are, and it is one of the major players in the sports betting industry right now. For example, in 2020, the Asia-Pacific region held the largest sports betting market share, with a 47% share. This statistic highlights just how popular sports betting has become in the region as a pastime for entertainment. The 47% share in 2020 shows how important the Asia-Pacific region is to the global sports betting industry and how it has contributed to the industry's blossoming success in recent years. 

Moreover, this kind of market share brings new investments and regulations into play, which will only drive sports betting popularity in the region now and in the future. The vast and diverse landscape of different economies within the Asia-Pacific region opens doors for plenty of different faces and organizations to emerge as new players in the sports betting industry. It is a stark reminder that the sports betting industry isn't solely reliant on the United States and Europe.

Sports Betting Markets: What's Next?

So, now you should better understand some of the emerging markets in the sports betting industry, but what factors may play a role in shaping what's next? Below, we have cultivated a list of some opportunities that emerging markets may look to capitalize on.

• Mobile Betting Dominance: Mobile betting will continue to drive sports betting popularity. Operators in emerging markets that utilize mobile applications and innovative payment solutions stand to gain an edge over their competitors.
• Localized Marketing: Tailoring marketing strategies and content to cater to local cultures and preferences could be a key factor in driving the growth of the sports betting realm in the markets mentioned above. For instance, this would allow operators to build customer loyalty and trust.
• Technological Innovation: Technological innovations within emerging markets will continue to be critical in shaping what happens next within their sports betting markets. For instance, things like blockchain technology, artificial intelligence, and more can all be helpful for success in these dynamic environments.