There have been some major, if not historic developments regarding gambling in the United States in 2018. New Jersey’s eight years of litigation have finally led to success with the highest court in the land, as That victory has led to the Supreme Court invalidating PASPA, and in turn allowing states to take control over sports betting authorization.
Due to this major change in legislature, seven states have already legalised sports betting; and while only a small fraction of US states have done so the potential for the US to become a world leader in sports betting is already becoming clear. However, this growth depends on how willing state and federal legal bodies are to embrace polices that would allow the industry to develop and compete for market share with offshore competitors.
Sports betting predictions for the US for 2019
But how will this shift reflect on what happens in the future? Will all of the US legalise sports betting? Probably not – but, regardless, with a nation of 350 million, there will certainly be some exciting developments! So, let’s explore some of the top predictions for the US in the year ahead.
Prediction 1: More states will authorise sports betting legislation
We predict that around 30 states will follow in the steps of New Jersey and introduce legislation, or at the very least consider the idea of legalising sports betting. Following on from that, there’s a big chance that a third of the country’s states will actually pass a bill though the legislature and attain the governor’s signature. As a result, we believe this will lead to a total of 16 or more states that have legal sports betting by the end of 2019.
Big states such as California, Texas or Florida will likely still need at least a couple more years to get on the same page. New York on the other hand, seems to be very anxious to get sports betting as soon as possible given they tremendous amount of potential revenue being lost to their neighboring state of New Jersey. Additionally, it wouldn’t be a surprising if a bunch of New England or Midwestern states rush to authorize sports betting for fear of having their neighbors ‘stealing’ the profits. This adoption is also likely to be exponential; the more states pass a bill, the greater the odds of other states in the region springing into action.
Predictions 2: The lottery-based model of sports betting will prove unsuccessful
Most US states have state-run lotteries, but states will soon find out that a state agency cannot do the activities a sports betting operator needs to be successful on its own and succeed. Sports bettors are sophisticated customers with very specific needs, who won’t settle for a poor and inadequate offering.
We predict that states who believe a generic sports betting product will win them market share will be in for a bad surprise. A plain offering that lacks innovation, convenience and competitive pricing will only push players to the offshore operators since no two sports betting customers are alike. Moreover, states that try to monopolize sports betting are risking getting seriously hit and earning very low revenues.
Prediction 3: Congress won’t address the wire act nor implement federal sports betting legislation
While PASPA’s repeal has made sports betting possible, it hasn’t provided an environment to enable companies that want to operate in multiple states. The Wire Act still prohibits interstate sports betting activities, which means that sportsbooks that operate in New Jersey can’t offer their products to people in Texas until Congress directly addresses the issue.
While Sen. Orrin Hatch from Utah has circulated a proposed amendment to the legislation, it didn’t address the Wire Act in a meaningful way for sports betting operators – and unsurprisingly, it was received with disappointment. Nevertheless, it is the state legislatures, not the federal government that holds the future of sports betting in the US in their hands. Whether this means that the Federal Government will take a step back and try to limit online sports betting and gaming, we can only wait and see.
Prediction 4: sports leagues new and struggling, will heavily invest in sports betting
Leagues such as bowling definitely need to find a way to boost popularity and relevance if they want to bolster their relevance. A great example is NASCAR. A well-established league that can benefit greatly from sports betting, we can only Imagine the traction that they will receive if they offer fans the opportunity to bet again with every lap.
When it comes to the football leagues, XFL and AAR, are already familiar with the importance of sports betting as part of their marketing strategy. In fact, they are already using enhanced betting strategies in attempt to win over new fans. A simpler approach, offering betting options only on major European and US leagues may be the best for newly established operators. But we expect that sportsbooks will start taking bets on even more exotic offerings during 2019.
Prediction 5: New Jersey to keep growing, but Nevada to keep place as revenue-leader
The growth in New Jersey is remarkable and with no stop in sight. The impressive results are almost entirely a result of their booming mobile betting marketplace, which now accounts for over 70% of the total sports betting market in the state. Industry watchers are getting curious and starting to question whether New Jersey can become a serious rival to Nevada. At the moment, New Jersey’s monthly handle still hasn’t reached even half the volume Nevada holds, keeping it far behind, but the question is, for how much longer?
Predictions currently stand at New Jersey reaching 60% of Nevada’s sports betting volume. But, if New York and Pennsylvania pass legislation, it will be interesting to see how it will affect and limit New Jersey’s success and growth. Of course, Nevada doesn’t have such worries since California and Arizona are nowhere near legalising sports betting.
Prediction 6: Mobile betting continues to fominate
The convenience of mobile sports betting makes it the preferred method of wagering for most bettors, and we expect the reign of mobile increase even if physical sportsbook handles reaches a plateau. While convenience is important, mobile has more options for in-play betting that make it more attractive.
In more mature European markets, in-play betting includes over half of all total bets. And as New Jersey operators grow and they become more sophisticated, we expect this mobile trend to continue. There’s no limit to how much mobile betting can grow in New Jersey and we believe this success will encourage other states to authorize mobile sports betting.
Prediction 7: Mobile-only sports betting will boost even states with no casinos will pass a bill
OK, well, sports betting is not a casino game. And even before Vegas, there were neighborhood bookies in most major cities in the US. The only thing different now is the way people do it. Technology has advanced and now it allows people to bet while watching. And mobile makes it even easier for bettors to place bets wherever and whenever it feels comfortable.
At the moment, few of the states that have casinos or racetracks have authorized sports betting, but this is totally irrelevant for creating a successful sports betting market. Mobile sportsbooks make it possible for operators to offer their products and services without the need for a physical facility, and states are becoming aware of this. In fact, Virginia and Tennessee, two states that do not have any gaming facilities, will be exploring mobile sports betting legislation in 2019. So don’t be surprised if both of these states authorize mobile sports betting, and by doing so, prove that mobile betting is a feasible and profitable as a stand-alone product.
The future of sports betting in the US
From these predictions, it is safe to conclude that online sports betting is promising to become the next big thing in the US. With more states becoming aware of the benefits of legalising sports betting and enabling mobile betting, we expect to see the Wire Act drop, more states to jump on the wagon, and of course, some interesting ‘fights’ over market share.
Africans are crazy about sports. Football has the most fans. Followed by cricket and rugby. But sports events are not only a key source of entertainment for Africans. They are also an opportunity to win money by placing sports bets. Interestingly enough, almost 40% of the African population is below the poverty line, yet Africa is emerging as one of the most lucrative sports betting markets in the world. As a result, we can see many (smart) Africans making a lot of money by betting on sports and online sportsbooks. Sportsbooks are very popular because they accept numerous payment methods: banking methods – cards such as Visa and Mastercard, PaySafeCard, Neteller, PayPal and mobile wallet based solutions.
Growing the Local Economy
Sports betting in Africa is extremely popular. Recent studies show that over 60 million residents of Nigeria aged 18-40 are actively betting, and spending an average of $15 per day. Similarly, the South African government statistics show that over 50 percent of adults in the country place sports bets regularly. And it’s pretty much the same in the rest of the continent as well.
European and US sports betting operators have realized the potential of the African market and seized the opportunity to expand. Additionally, sports betting companies are greatly supported by local advocates who say that this expansion is good for the economic growth of several African countries because it provides job opportunities for many young Africans and generates tax revenue for the government. At the same time, it enables bettors to make some money.
Rise of Sports Betting in Africa
There are many reasons why sports betting is so popular among Africans. From their love of the sport to the high unemployment rate and lenient sports betting laws. Everyone has a reason to enjoy the leisure-time activity, bettors and sports betting operators alike.
Great Love for Sports
Yes, we said this before but we can’t stress enough how much Africans love sports. Football is the most popular sport, for playing and betting. European football leagues in general and the Spanish, English, Italian, and French leagues, in particular, have African fans in the millions. Other sports like cricket, rugby, tennis, horseracing, basketball, boxing, and car and motorcycle races also have a substantial following and attract a large number of bets. Africans are especially enthusiastic about placing bets on match outcomes such as the number of goals, players that score the most, etc. This inexplicable sports craze is what makes sports betting the most lucrative and fastest growing in the world.
Lenient Sports Betting Laws
It is very attractive and very easy for European and US sports betting companies to expand into Africa because of the lenient sports betting laws in almost all African countries. In fact, South Africa is the only country that has proper regulations. In the rest of the African countries, gambling laws are new and the industry is not yet regulated. All the while certain countries with Muslim-majority have enforced a blanket ban on every form of gambling including sports betting.
Rise of Mobile Gaming
The rise of mobile devices in Africa is making sports betting available to even more people. Now, more and more Africans enjoy sports betting on the move. In fact, the African sports betting operators are using this mobile trend by partnering with top mobile phone operators to link mobile money services such as M-Pesa, Orange Money, and Airtel Money with their sports betting products. As a result, Africans are increasingly using their smartphones and tablets for sports betting, slowly making Africa the first mobile continent for sports betting.
High Unemployment Rates
Africa has a staggering unemployment rate – more than 200 million people aged 15-24 do not have jobs. In fact, several countries have a 25% unemployment rate. At the same time, the population of the continent is expected to double by 2050, and the continent to have the world’s largest youth population. The main reason why many associations support the expansion of European and US sports betting operators and sportsbooks in Africa are the job opportunities they would create, thus lowering unemployment.
Conclusion
The African continent is huge, and rules and regulations for sports betting are still a fresh subject. The 54 countries have different laws that allow or completely ban gaming and gambling so whether you are an eager player or sports betting operator looking to expand, do your proper research on the regulative and the other sportsbooks out there.
There are many factors that influence the landscape. Reputability, licensing, fair play, privacy policies, and customer care among others. But one thing is certain – sports’ betting is on a constant rise in Africa, with mobile betting dominating the market. If you are an operator considering Africa your next target, now the best moment to take your place on the ‘Mecca’ for online gaming.
In 2024, it is projected that the worldwide iGaming sector will have a value exceeding 92.9 billion U.S. dollars. Currently, the market is approximately 59 billion U.S. dollars, which indicates that it is expected to grow twofold in the coming years.
Introduction
So how to choose the best online bookie software provider?
Thinking about getting into the potentially big-money online bookie and gaming business – whether sportsbooks, casino – here are the key things to know when choosing the best sports betting software and launching an online sports betting and gaming start-up.
The majority of betting and gaming activity takes place via smartphones these days – especially so on sportsbooks where over 70% of revenues are processed through the mobile channel. Focus on providing the best experience and software for your players, who are looking to enjoy themselves and use their devices to view and bet on online sports.
By all means you’ll want a funky website too – easy to bet on and to use, with a great look and feel, but front of mind should be the great players’ experience you will provide through your mobile software site.
Consider launching with a native sports betting software app – downloadable via the Apple and Google Play store. Better for forming a longer-lasting relationship with your customers, easy-to-use and often a right choice for the market. However if speed to market is important to you, and let’s be honest why wouldn’t be, then a mobile-friendly sportsbook and games website, fully adjustable, maybe the solution for you. Often Best is the enemy of Good – in this case to get to market the quickest way – then Good will do for now.
We know that a battle plan only lasts until the first bullet is fired on day one- but nevertheless you want to have developed a business strategy before going down the expensive road of launching an online sports and igaming brand. Becoming a bookie – as it is known is the UK and USA – can be a profitable occupation, as long as you think long and hard before you leap into action.
At a market level – do you know who and where you are targeting? What are other bookmakers up to? Which competitor is your number one target? What regulations do you need to comply with? Do you know how you are going to win? What is your marketing strategy? Where will you position yourself in the market? What are the minimum range of products and features you’ll want to offer to compete? What will be the overall look and feel on your website?
Have an answer to the above questions and you’re on your way. You can design a product and brand to suit your needs. You will be able to obtain the best software platform and products to suit your business, as well as the players you’ll require to be successful.
Buy, build or license – what type of sports betting software platform best suits your needs?
Buying or building your own bookie software platform can be a risky endeavour, especially if you’re new to the betting and gaming space. Are you prepared to make that bet?
A quick-to-market software solution is to find a reputable and flexible iGaming software solutions provider with an existing trusted and stable platform to build your operation.
Take your time and find the best option – better to be a partner with an experienced sportsbook software provider where you have a win-win relationships than to be a small fish in a big pond with some of the larger corporations.
So, you choose to go with the best sports betting software provider for your needs- what type of platform do you need? Options are often a turnkey approach or a white label.
A turnkey site allows you control of functionality and branding – with responsibility for some, if not all the operations. You’ll have to sort out your own license and be responsible for all compliance matters
A white label is less flexible – although customisation is available in terms of branding and colours but bespoke software development is less easy to get done. However it is the fastest and cheapest way to market.
What betting options are you going to offer your customers on your new web and mobile sites?
Sports betting, especially live betting software, is an important element. Live betting has grown significantly in the last 20 years and produces the most bookmaker bets. Online casino games are an excellent way of recruiting customers, especially slots and roulette. Live online casino software is a great addition to any site and players love to bet with real dealers . Esports and virtual sportsbook bets continue to make sense to add to your offering and are fantastic of attracting a younger demographic to your operation..
Additional sportsbook and casino software features and content will be required for the best sports betting customer experience – and your sports betting software supplier can provide guidance in this area. Consider social activity, chat rooms for customer service, real time sports content to help guide your customers’ choices. There’s also a wide range of free content that your players will like, especially around social networking.
This is why opting for the best platform software provider to meet your needs is a key decision – it’s about the free help and advice they can offer, given their experience as bookies.
Details, details….
A key element of any interactive betting and gaming service is the provision of effective, real time multiple payment options for your players. If they can’t deposit their money simply or, even more importantly, take back their money quickly, then the service will be unacceptable and you will struggle to succeed long term.
Here again your platform partner can help you through this – and help integrate you with existing and trusted payment processing providers, who can also deal with some of the other issues that you have comply with, including fraud detection and AML (anti-money laundering) matters.
The easier you make your sportsbook journey for your customers, delivering a great user experience no matter where they are interacting with you, the more successful your sportsbook or betting business will be.
People, who need people…
Take time to invest in the right choice of people for your brand and take time to choose where they work. Outsourcing solutions are commonplace in online sportsbook and gaming, ranging from technology team, operations/ customer care teams or even finance / AML resources.
Outsourcing can be a fine approach and free up time – but don’t allow your sportsbook and gaming business and your people to become too remote from your customers and the market, including the competition sites.
Key areas in your structure shouldn’t be outsourced – your top teams should be your main asset, your secret sauce – so take your time and recruit well – build a united, online betting team focused on success. Secret of that is easy – communication, communication, communication!
An investment in a good analytics application is vital so find an effective CRM solution, to manage and present data especially so to help your marketing strategy be successful.
This takes us nicely to your marketing strategy – absolutely vital that you are clear about your strategy for launch and thereafter. Expect to spend 30-40% of your overall budget on marketing in your first year.
Branding, recruitment, retention, bonuses, paid search, programmatic search, sponsorship, affiliate networks – there are plenty of options where to invest your marketing dollars – so you need to have an initial plan. Then make data-led decisions to adapt your marketing approach.
Summary
So, in summary, the betting and gaming industry can be an exciting and profitable space to be involved in. Key areas centre around the choice of the right igaming platform and top betting and gaming products and features.
The best sports betting (bookie) software provider for your business needs is always a key decision to make, as is the actual type of bookmaker and gaming platform you provide. Speed-to-market is often one key element in launching, but don’t let that pressure affect your decision on a sports betting software partner. Cost effectiveness in getting to live is one element but ongoing monthly costs also need to be considered and weighed up in the big picture. A long-term relationship with your gaming software supplier is what you should plan for – so choose one who will support you from training, marketing and further software development perspectives. Also, make sure you choose an igaming or bookie software provider that has a comprehensive portfolio of products, with the best range of suppliers for your specific market needs.
The right, real time quality of user experience you deliver, especially through the mobile software platform will be key.
Market knowledge, digital marketing capabilities and having a well-trained and motivated team are other top elements to be included in your successful bookmaker operation.
Gaming and gambling are not new to Africa. There is no denying that land-based casinos gambling comprises a large portion of the market, but over the last few years, sports betting is increasingly rising in popularity. At the end of 2018, the industry was worth around $37 billion and is expected to continue to increase over the upcoming years.
The growth in mobile money services and rapid Internet penetration has created additional opportunities for digital inclusion, financial inclusion, and innovation, making Africa the leader in mobile growth. The proliferation of mobile led to a considerable expansion in mobile sports betting and other forms of online gambling to spread like wildfire through the continent, with 75% of all online bets in Africa places using mobile devices.
The State of Online Gaming in Africa
Africa has very mixed social and economic developments, but for numerous different reasons, Africa is very attractive for many online operators. Many of the countries offer near-term revenue potential for online sports betting operators and depending on the type of regulation of gaming legislation, grey and black market share could be drastically reduced.
With South Africa generating the most significant turnover due to the legally regulated online sports betting as well as necessary Internet and mobile infrastructure, in other countries like Kenya and Nigeria mobile betting has had the biggest expansion, moving from retail market towards the online market. Additionally, Uganda, Tanzania, Ghana, Senegal, the Democratic Republic of Congo are markets following along the sports betting popularization.
The most popular sport that Africans bet on is football. International competitions such as FIFA World Cup, African Cup of Nations, Euro or Copa America along with Premiership, Primera, Serie A, and UEFA Champions League are favourites among punters. Horse race betting, the national lottery outcome and the African sport of Juksei are other popular betting choices.
Regulation and Legislative
Being the first mobile-dominant continent for online sports betting is impressive enough on its own, but if equally astonishing is the fact that even though less experienced than their European counterparts, African regulators have an immense desire, maturity, and level of understanding and knowledge related to gaming and gambling issues problem gambling, sports and betting integrity. Additionally, they accept that technological advancements mean that prohibition of online gaming does not work because customers will always find a way to play.
Moreover, concerned that banning gambling may lead to even higher rates of money laundering and creating stronger links between gambling and crime, African regulators are interested in finding regulatory solutions that will protect both, the payers and the operators. And rather than just taking another jurisdiction’s laws and regulations and applying them as they are, Africans are keen to take the international best practices and adjust, interpret and adapt them in ways that work most effectively in and for their respective jurisdictions.
Alternative Payment Systems
One of the biggest challenges for online operators in Africa is the significant number of unbanked consumers. Thus, deposits and withdrawals need to be executed using various alternative payment methods. One of the most popular solutions comes with mobile payments – the ability to charge a payment directly from the player’s mobile phone bill. This method requires the player to have an account with a mobile operator that cooperates with the online operators.
Additionally, many operators use their retail business as an alternative means of payment, enabling players to deposit and withdraw money directly to their online account, or use vouchers. Again, with the help of the mobile network operators, players can place a bet using the voucher by sending an SMS message or making a call.
Another popular alternative payment solution besides mobile-payments and mobile wallets are cryptocurrencies, in particular, Bitcoin but the market share is still small. The continent has also many local online payment companies as Kpesa, Kopokopo, Pesapal, Jambopay, Ipay and Instantpay, Paypal, and even internationally recognized MyGate, Skrill and Sagepay are also allowed.
The trend of creating alternative payment solutions is actively taking over the iGaming industry, not only in Africa but also throughout Europe, USA and the rest of the world.
Is Africa the next new market?
The increased number of operators moving to Africa to expand their network and offer their online betting and gaming services to this new emerging market, only indicates that Africa might be the new big market for iGaming.
Europe remains fragmented, and with numerous different laws and jurisdictions supporting or banning online gaming, USA is slowly moving to legalised sports betting, leaving Africa to be a brand new market that is still working on its online gaming regulations, giving operators a lot of challenges but also room to navigate through the complicated landscape.
So will the fast development of online gaming and the steady implementation of regulatory law in Africa help Europe see the problems in the patchwork quilt nature of its online gaming regulation law? Can Europe find a way to legalize and regulate online sports betting and gaming across the continent before it loses its market share to Africa?
