Sports betting vs. Casino. Does online sports betting need a change?

The online sportsbetting industry saw some of its biggest innovations come out over the last half of decade. Key features like live betting. mobile betting or live streaming have emerged, changing the game, while the growth of the internet allowed operators to provide incredible speeds and features on their websites. It`s hard to argue that betting on sports online was ever easier or more entertaining and you would be hard pressed to find legit complaints about the services offered by the top operators. But, even in these conditions, there’s a feeling that the industry is in more or less pressing danger of losing territory to casinos.

It’s no secret that combining online with offline, casinos have always done better:

• Over the last 15 years, online sportsbetting saw an estimated growth of just over 5%
• Over the last 15 years, online casino games saw an estimated growth of just over 8%
• Sports betting market share in 2007 / 2014 – 14% / 13,9%
• Casino games market share in 2007 / 2014 – 32% / 35,1%

Where sportsbetting used to (and still does) break the bank, is the online segment:

• Global online gambling equated to $40 billion in GGY in 2013 (up 4.4% from $38.32 billion in 2012) and is forecast to reach $50 billion in 2017. Online sports betting accounted for nearly 50% of the overall global online gambling market figure for 2013, equating to around $19.3 billion.

Sports betting is still the fastest growing segment of the online gambling industry in some top markets like the UK and is still ruling the internet industry. However, the offline tendencies are a reason for worry. The growth on the online segment is also slower than in the past, as more people are starting to turn their their eyes to the roulette wheel or the slots.

It’s not hard to guess why casinos are seeing a superior growth to not only sports betting, but other forms of gambling as well (bingo, exchanges, etc.). There are so many new, shiny options and promotions every day. It’s easier for casinos to give them out, with the payout rate being much lower than in sportsbetting.

Casinos are constantly adding elements to their offer, something that it’s more difficult for sports betting to do – and something that was not happening until a few years ago. How can a newbie not be captivated by all these, as opposed to the slower process of betting on sports, which definitely brings a much better chance for payout – but does it on a longer period of time and without the perspective of getting rich in a spin of the wheel?

Sports betting and betting exchanges are arguably the online gambling industries in which the most degree of skill is involved, and the ones where long term money can truly be made. I always said that serious sports betting takes more skill than poker and I`m so convinced of this, that I am planning a future article on the topic. Thus, they should rule the online space and they have done a great job so far.

It’s definitely too early to say that the casinos are taking over the online industry. Sports betting is still the number 1 option and will continue to be for years to come, so it might seem peculiar to be worried at this stage. But, with casinos seeing superior growth and projected to continue growing faster, sports betting seems to need to find the next big thing. After all, live betting can only get so good and live streaming every single match (which will happen) might not do the trick. Mobile betting is growing, but mobile casinos are doing the same thing.

• Sportsbetting accounted for 76% of mobile gambling market in 2013
• Sportsbetting accounted for 75% of mobile gambling market in 2014
• Sportsbetting accounted for 70% of mobile gambling market in 2015

Without a change, online sports betting could lose more to the casino tables. What will the next big thing be for the industry? The future is now, but your guess is as good as mine.

Sources: egba.eu BBC Uk