The International Betting Integrity Association (IBIA) recently conducted a study that detailed the significant growth of the Asian sports betting industry, fueled by increasing interest in football and basketball. This report, authored by H2 Gambling Capital, provides an in-depth analysis of market trends and forecasts, outlining the potential development trajectory of the industry through 2028.
Market Expansion Continues, Outlook Positive:
The official report (pdf) has received support from global partners such as the Brazilian Betting Association and the Canadian Gaming Association. It predicts that by 2024, the global sports betting market will generate approximately $94 billion in total gambling revenue (GGR). A significant portion of this revenue (65% or about $61 billion) is expected to come from online platforms. The trend towards digital gambling is expected to increase, with online sports betting potentially reaching about $93 billion by 2028, accounting for over 70% of the market share.
Football remains the dominant force in sports betting, with football betting turnover expected to reach $570 billion by 2024, with a GGR of $53 billion. This represents over 56% of the total revenue of the globally regulated gambling market. Online platforms are expected to play a key role, contributing nearly 65% of the football betting GGR. Europe and Asia will be the major contributors, accounting for 85% of the total football betting revenue.
Besides football, basketball is also showing significant growth, especially in North America, where basketball betting revenue is expected to reach about $5.4 billion by 2028. The global basketball betting market is expected to grow from $7.9 billion in 2024 to $11 billion in 2028, with Europe and Asia also showing strong growth potential.
Driven by the increasing popularity of sports such as football and cricket, traditional and online gambling businesses in China and India have seen significant growth. These countries are becoming key players in the sports betting field, leveraging their large populations and increasing internet penetration to expand the market. This growth is facilitated by the cultural affinity for sports and the increasing acceptance of gambling as a form of entertainment.
Onshore and Offshore Betting Dynamics:
According to H2 Gambling Capital's analysis, by 2024, 83% of sports betting is expected to be conducted through licensed domestic operators, a significant increase from 63% in 2018. Despite this growth, about 17% of betting is still expected to be conducted through licensed offshore operators, not including the vast unregulated market, especially in Asia.
The report discusses the challenges faced by offshore betting and notes that "maximizing the role of domestic channels is key to addressing integrity issues and ensuring the sustainable development of Asia's growing sports betting market." The report also highlights that restrictions on live betting in regulated markets could push consumers towards offshore alternatives, potentially reducing domestic revenue and failing to meet bettors' needs.
The analysis emphasizes the importance of a strong regulatory framework for combating corruption and enhancing consumer protection. The report notes that as more Asian jurisdictions begin to regulate online sports betting, opportunities for economic growth and consumer safety will increase. The report draws parallels with Brazil's evolving sports betting landscape, offering insights that could guide the Asian market in constructing regulatory frameworks to curb offshore betting challenges while increasing onshore revenue.
The continued expansion of the Asian sports betting market brings both opportunities and challenges. With significant economic benefits on the horizon, stakeholders should develop comprehensive regulatory measures to promote integrity and consumer safety.
