The repeal of PASPA in 2018 opened the floodgates for sports betting in the US. Once limited to Nevada, legal sports wagering has expanded to 30 states and counting. This momentum is fueling exponential growth in the sports betting industry. New platforms, such as Casino Lukki, integrations and innovations are shaping the future of how we bet on sports.
The Rise of Mobile Betting
Already the preferred method of placing wagers in legal markets, mobile betting makes up 75-90% of total handle. The convenience of betting anytime, anywhere right from your smartphone continues to disrupt the industry. Mobile betting apps bring the sportsbook experience to the palm of your hand. Features like live in-game betting with real-time odds appeal to millennials and bettors seeking instant gratification.
As 5G cellular networks rollout across the country over the next five years, the connectivity and speed of mobile devices will reach new heights. This creates the infrastructure for more visually appealing and interactive mobile betting apps. Augmented reality (AR) and virtual reality (VR) integrations could transport bettors courtside or field-side to view live odds and place wagers in real-time during gameplay. The possibilities are endless as mobile bandwidth improves.
Cryptocurrency and Blockchain Technology
Cryptocurrency sponsorship deals are exploding across sports leagues and teams. Cryptocurrency exchanges like Crypto.com, FTX and Coinbase are investing heavily in marketing agreements to expose their brands. While crypto is going mainstream through these deals, blockchain technology itself can transform behind-the-scenes operations for sports betting operators.
Blockchain ledger systems bring transparency to all transactions. The decentralized network records each wager, deposit and payout in anonymous chains of custody. This allows regulators like gaming control boards to oversee operations without compromising user data privacy. Blockchain efficiently manages the account lifecycle from KYC onboarding to activity tracking for responsible gambling.
Several startups are working to build blockchain-based sports betting exchanges. These peer-to-peer platforms allow users to set odds and bet against other platform users without a middleman sportsbook per se. Instead the company provides the technical infrastructure and takes a small cut of winnings as the intermediary host.
AI to Enhance the Betting Experience
Artificial intelligence Machine learning models can compile data to generate odds and betting recommendations. Sportsbooks are testing these AI tools to create prop bets and boost engagement. The more data input into these models around lineups, player stats, weather conditions and other variables that influence games, the more accurate the outputs.
AI also has applications in responsible gambling initiatives. User data and bet tracking can identify patterns of risky behavior. Operators can then intervene with limits or timeouts before an issue arises. For those with gambling disorders, AI therapy solutions can provide customized care including relapse prevention tactics. This technology can enhance consumer safety.
| Year | Total Sports Betting Handle in US ($B) |
| 2017 | $2.9 |
| 2021 | $57.2 |
| 2025E | $200.0 |
The Outlook for Responsible Industry Growth
Projections have legal sports betting revenue ballooning to $42 billion by 2033. However, smart expansion focused on responsible gambling is crucial. Several startups aim to preempt problem gambling issues with AI as mentioned along with advanced biometrics for identity verification. Meanwhile regulators must update frameworks including implementation of open banking APIs.
Open banking gives consumers control to share their financial data across institutions and platforms. This way operators can cross check deposits against income and net worth to flag overspending. If users authorize access to bank statements, it also streamlines KYC while strengthening fraud detection when onboarding new bettors.
While sports betting goes mainstream, the emphasis must remain on informed decision making for bettors and foolproof protection measures. The innovations centered on mobile experience, blockchain, cryptocurrency and AI should aim to build transparency and trust in the underlying betting infrastructure. If technology companies and regulators align interests, the future looks exceedingly bright.