Virtual Sports Betting Market

Global Virtual Sports Betting Market Insights

The global market for virtual sports betting experienced a valuation of USD 8.45 billion in 2021 and is projected to reach USD 35.54 billion by 2030, with an anticipated CAGR of 17.3% during the forecast period (2023-2030).
Virtual sports betting refers to the practice of placing bets on simulated sporting events generated by software programs. These virtual events replicate real-life sports events in terms of rules, gameplay, and statistical analysis. Users can engage in virtual sports betting across various sports such as football, horse racing, tennis, basketball, or cricket, by placing bets on outcomes such as winners, scores, and other related aspects. The odds are calculated based on statistical analysis of the virtual events, and payouts are determined by the amount wagered and the offered odds. Notably, virtual events are unaffected by external factors like weather conditions, injuries, or unforeseen circumstances that may influence the outcome of real sports events. This reliability and consistency make virtual sports betting a viable option for users to place bets at any time.
The global market is poised for substantial growth in the coming years, driven by several factors. Firstly, the rising popularity of online sports betting contributes to the market's expansion. With increasing numbers of individuals opting for online platforms for their sports betting activities, virtual sports betting has emerged as a favored choice. Online sports betting offers convenience, accessibility, and a wide range of options, including virtual sports events. Secondly, the adoption of virtual sports by sports leagues and broadcasters fuels market growth. Professional sports leagues now incorporate virtual sports events alongside traditional sports events, presenting opportunities for sports betting operators to provide virtual sports betting options to users. Lastly, technological advancements in the gaming industry play a significant role in propelling market growth. Virtual sports events are becoming increasingly realistic and sophisticated, featuring enhanced graphics, animations, and gameplay, thereby enhancing the overall user experience and engagement.
Overall, the global virtual sports betting market is anticipated to witness substantial growth in the coming years, driven by the increasing demand for online sports betting, the adoption of virtual sports by sports leagues and broadcasters, and technological advancements in the gaming industry.

Global Virtual Sports Betting Market Segmental Analysis

The Global Virtual Sports Betting Market is categorized based on simulation type, end-user, and region. In terms of simulation type, the market is segmented into RNG-based and AI-based simulations. On the other hand, the end-user segment comprises individual customers and commercial customers. Geographically, the market is divided into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Analysis of Virtual Sports Betting Market by Simulation Type

The RNG-based virtual sports segment holds the largest share in the global market. This can be attributed to the ease and cost-effectiveness of developing RNG-based simulations compared to AI-based simulations. RNG-based simulations also provide a more straightforward betting experience, appealing to a broader range of users.
The AI-based virtual sports segment is the fastest-growing segment in the market. This growth is driven by the increasing sophistication and realism of AI-based simulations, enhancing user experience and engagement. AI-based simulations can consider various factors such as player performance and historical data, leading to more accurate virtual sports outcomes and providing users with greater betting opportunities.

Analysis of Virtual Sports Betting Market by End-User

The individual customers segment represents the largest portion of the global virtual sports betting market's end-user segment. This includes individuals who enjoy sports and betting and use virtual sports betting products to fulfill their desire to bet on sports events. The individual customer segment encompasses both casual and professional bettors. It significantly contributes to the market's revenue, surpassing the commercial customer segment in size.
The commercial customers segment is the fastest-growing segment in the global market. Betting operators and sportsbook providers are increasingly integrating virtual sports betting into their services, a trend expected to continue. This segment plays a crucial role in market growth as commercial customers contribute a significant share of the market's revenue. Betting operators and sportsbook providers are also likely to invest in technology and innovation to enhance the virtual sports betting experience for their customers, further driving growth in the commercial customer segment.

Regional Insights for the Global Virtual Sports Betting Market

Europe stands as the largest market for virtual sports betting, with countries like the UK, Italy, and Spain leading in adoption and revenue. The legality and regulation of virtual sports betting in many European countries have created a favorable environment for providers, enabling legal operations and product offerings to customers. The popularity of virtual sports in Europe, as well as the familiarity of customers with virtual sports content on TV and online platforms, contribute to the market's growth. The European market is highly competitive, requiring providers to be innovative and offer high-quality products for success. Europe is home to technologically advanced virtual sports betting providers, and while the market is already well-established, there are still growth opportunities as providers continue to develop new and innovative products, accompanied by advancements in virtual sports technology.
Asia Pacific plays a significant role in the Virtual Sports Betting Market, driven by its large population and growing middle class. With increasing internet penetration, rising disposable incomes, and a growing interest in sports betting and gaming, the region is expected to be one of the fastest-growing markets in the coming years. However, the regulatory environment for virtual sports betting in the region varies, posing challenges for companies operating there. The Asia Pacific market is predominantly mobile-first, with a high reliance on mobile devices for internet access. This emphasizes the demand for seamless and user-friendly mobile virtual sports betting experiences. Additionally, the market is characterized by both established and emerging players, creating a competitive landscape for new entrants. Given the diverse customer preferences and cultural backgrounds in the region, companies that offer a range of products catering to different preferences are likely to succeed.

Global Virtual Sports Betting Market Dynamics

Virtual Sports Betting Market Drivers

Technological advancements are driving the global virtual sports betting market by enhancing customer experiences. Virtual Reality (VR) technology enables realistic and immersive virtual sports experiences, potentially transforming the market. High-quality 3D graphics contribute to more realistic environments and characters, increasing user engagement and satisfaction. Artificial Intelligence (AI) algorithms improve the accuracy and realism of virtual sports outcomes, leveraging extensive data analysis. The growing use of smartphones and mobile devices fuels the demand for mobile virtual sports betting, making it more accessible and convenient for users. Streaming technology ensures seamless and high-quality delivery of live and on-demand virtual sports events, further enhancing user engagement and satisfaction.

Virtual Sports Betting Market Restraints

Regulatory and legal restrictions

Regulatory and legal restrictions pose significant challenges to the growth of the global virtual sports betting market. The regulatory landscape for online sports betting is complex and varies across jurisdictions, with differing laws and regulations governing the practice. Certain countries prohibit or heavily restrict online sports betting, limiting market growth in those regions. For instance, in the United States, online sports betting is legal only in a few states, constraining the potential market size for operators. Similarly, some European countries have stringent regulations that can impede market growth. Alongside legal restrictions, regulatory limitations also impact market expansion. Regulators may impose specific standards and requirements that operators must meet to operate in a particular jurisdiction. These requirements encompass licensing, data security, and consumer protection measures. Compliance with these regulations can be time-consuming and expensive for virtual sports betting operators, restricting market entry for many. Consequently, this limitation affects the variety of products and services available to consumers, ultimately impacting market growth. Moreover, the regulatory landscape for online sports betting is subject to constant evolution, creating uncertainty and potentially hindering investment. Changes in regulations or legal frameworks can significantly influence market growth and development, necessitating adaptability from virtual sports betting operators for long-term success.

Global Virtual Sports Betting Market Competitive Landscape

The virtual sports betting market, while still relatively small compared to traditional sports betting, is rapidly growing within the broader sports betting industry. This growth is expected to continue as technology advances and virtual sports become more realistic and captivating. Currently, a small number of leading providers dominate the global market. These companies offer a diverse range of virtual sports products, including football, horse racing, greyhound racing, and motorsports. In addition to these established players, several emerging companies are entering the market. These companies are focused on developing more sophisticated and engaging virtual sports products to compete with traditional sports betting offerings.

Virtual Sports Betting Market Top Player’s Company Profiles
• 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.

Virtual Sports Betting Market Recent Developments

In February 2021, Evolution Gaming, a prominent live casino game provider, announced the acquisition of NetEnt, a virtual sports betting and casino game provider. This strategic move is expected to enhance Evolution Gaming's position in the virtual sports betting market, strengthening its market presence.
Genius Sports announced a partnership with DraftKings in January 2021 to provide virtual sports betting content for the DraftKings platform. Additionally, IMG Arena partnered with Leap Gaming in the same month to expand their respective offerings in the virtual sports betting market.
Kambi Group introduced a new virtual football game in March 2021, utilizing real-world match data to deliver an immersive betting experience to users.

Key Market Trends in Global Virtual Sports Betting

The surging popularity of virtual sports is a significant trend propelling the growth of the global virtual sports betting market. Virtual sports are simulated games designed to replicate real-world sports events, employing advanced technologies like AI and machine learning to create realistic simulations. These virtual sports can be accessed and played online from any location worldwide. The convenience they offer is a key driver of their increasing popularity. Virtual sports can be played at any time, providing flexibility that appeals particularly to younger audiences who prefer digital content and online gaming experiences.
The availability of virtual sports is another contributing factor to their popularity. Unlike traditional sports betting, which is limited by the occurrence of live sporting events, virtual sports events can be conducted frequently, offering a continuous stream of betting opportunities. Virtual sports are not constrained by time zones, weather conditions, or other factors affecting real-world sports events, enabling them to be available 24/7.
Moreover, virtual sports provide a level of predictability absent in real-world sports betting. Algorithmic and random number generator-based outcomes allow for accurate calculation of winning odds. This predictability has attracted risk-averse bettors who seek to minimize their losses, making virtual sports a preferred option for this segment of bettors.