June 16, 2024
Virtual Sports Betting Market

Virtual Sports Betting Market is Estimated to Witness High Growth Owing to Augmented and Virtual Reality Advancement

The virtual sports betting market allows users to place wagers on virtual sporting events such as soccer, basketball, racing, and other sports. Bettors can place bets on the outcomes of virtual games simulated on computers without any real-world events or athletes involved. With features such as augmented and virtual reality, the betting experience becomes more realistic and interactive. The increasing popularity of eSports and the rising adoption of VR and AR technologies are driving the demand for virtual sports betting platforms.

Global Virtual Sports Betting Market is estimated to be valued at US$ 39.78 Bn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the virtual sports betting market include Betradar, BetConstruct, Inspired Entertainment, Inc., Kiron Interactive, Golden Race, NSoft Corporation, Betgenius, Vermantia, Global Bet Virtual, 1X2 Network, Playtech plc, BtoBet, Digitain, Sportradar AG, FSB Technology, Bragg Gaming Group, EveryMatrix Ltd., Metric Gaming LLC, Virtual Gaming Worlds, Microgame S.p.A., and Pari Match. These companies offer virtual sports games using VR and AR technologies to provide a more immersive betting experience to users.

Key opportunities in the Virtual Betting Market Size  comprise growing acceptance of cryptocurrencies for online payments. The rising popularity of blockchain-based gambling platforms is fueling demand. Advanced technologies like VR, AR, AI, and blockchain offer opportunities to create more realistic virtual sports games.

Advancements in VR and AR technologies are major drivers of the virtual sports betting market. Using HMDs and motion controllers, VR allows users to view virtual events from different angles and place bets intuitively. AR overlays game simulations and statistics onto real-world views on mobile devices. Such immersive experiences boost user engagement and time spent on betting platforms.

Market Drivers
The increasing popularity of eSports is a key driver of the virtual sports betting market. As eSports betting continues to rise in acceptance, virtual sports betting provides opportunities to bet on competitions for games that lack real-world sporting events. Another driver is the growth of online gambling platforms aided by high-speed internet connectivity and widespread smartphone access. Expanding internet penetration facilitates access to virtual sports betting apps and sites globally.

Current challenges in Virtual Sports Betting Market
The virtual sports betting market is facing challenges in terms of high initial investment in technology and infrastructure. Significant capital is required for developing advanced software and systems for offering immersive and realistic virtual sports betting experience to customers. Ensuring smooth integration of virtual betting solutions with existing betting platforms is also complex and resource intensive. Adapting to dynamic customer preferences and regulatory frameworks across countries further adds to the costs. Lack of awareness among some customer segments regarding the concept of virtual sports betting also poses a demand challenge for industry players.

SWOT Analysis
Strength: Advanced technology such as augmented reality, virtual reality etc. provide immersive experience. Customizable betting options attract wide range of bettors.
Weakness: High dependency on technology can increase vulnerability to glitches. Lack of “real” experience of live sports can limit appeal.
Opportunity: Untapped growth potential in developing markets. Integration of eSports presents new opportunity.
Threats: Stricter regulations can limit operations and revenues. Competition from live sports betting can divert customers.

Geographical regions:
Europe accounts for the largest share of the global virtual sports betting market currently, in terms of value. Countries such as the UK, Germany, Italy have established virtual sports betting industries and attract high revenues. North America is also a major regional market led by the US, which is witnessing strong growth.

The Asia Pacific region is expected to be the fastest growing market for virtual sports betting during the forecast period. Rapidly increasing internet and smartphone penetration along with rising disposable incomes in countries such as China, India is fueling the growth of virtual betting in the region. Furthermore, eSports popularity and integration is boosting the APAC virtual sports betting adoption.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it