The sports betting industry in Asia is seeing tremendous growth, driven by the rising interest in football and basketball, as outlined in a recent study by the International Betting Integrity Association (IBIA). Conducted by H2 Gambling Capital, this report provides detailed insights into market trends and projections that outline the potential trajectory of this sector up to 2028.
Expanding market with promising forecasts:
The official report, supported by global partners like the Instituto Brasileiro de Jogo Responsável and the Canadian Gaming Association, predicts that the global sports betting market will generate approximately $94 billion in gross gaming revenue (GGR) by 2024. A significant portion of this revenue – around 65 percent or roughly $61 billion – is expected to come from online platforms. The shift towards digital betting is expected to grow, with online sports betting potentially reaching about $93 billion by 2028, making up over 70 percent of the market.
Football continues to be the leading force in sports betting, with projections suggesting it could generate $53 billion in GGR from an estimated $570 billion turnover in 2024. This accounts for more than 56 percent of the total regulated betting market’s gross win on a global scale. Online platforms are set to play a crucial role, contributing nearly 65 percent of all football betting GGR. Europe and Asia are expected to be the major contributors, making up 85 percent of all football betting revenue.
In addition to football, basketball is experiencing significant growth, particularly in North America, where it is projected to achieve a basketball GGR of around $5.4 billion by 2028. The global basketball betting market is forecasted to grow from $7.9 billion in 2024 to $11 billion by 2028, with Europe and Asia also showing strong growth potential.
China
Onshore vs. offshore betting dynamics:
According to the analysis from H2 Gambling Capital, it is anticipated that by 2024, 83 percent of all sports bets will be placed with licensed onshore operators, a notable increase from 63 percent in 2018. Despite this growth, approximately 17 percent of bets are expected to still be placed with licensed offshore operators, not accounting for the extensive unregulated markets, particularly prevalent in Asia.
According to Asia Gaming Brief, the report discusses the challenges of offshore betting, stating, “Maximizing onshore channelization is key to addressing integrity issues and ensuring that Asia’s growing sports betting market remains sustainable.” It also emphasizes that restricting in-play betting in regulated markets could drive consumers towards offshore alternatives, potentially reducing onshore revenue and failing to meet bettor demand.
The analysis underscores the importance of robust regulatory frameworks to combat corruption and enhance consumer protection. It suggests that as more Asian jurisdictions move towards regulating online sports betting, there will be increased opportunities for economic growth and improved consumer safety. The report draws parallels with Brazil’s evolving sports betting landscape, offering insights that could guide Asian markets in structuring their regulatory frameworks to tackle offshore betting challenges while boosting onshore revenues.
