2020 technologies to support betting growth
PwC MD Mike Keenan considers how sports betting will likely impact the bourgeoning sports sector in the US and what new technologies might propel sportsbooks even further
The North American sports market is primed for growth. With changes around fans’ viewership habits and TV ratings, as well as the addition of widespread, legalized sports gambling in the US, PwC looked at the overall market in our 2019 Sports Outlook report.
We projected the sports market in North America will grow from $71.1bn in 2018 to $83.1bn in 2023. While this growth is not necessarily new, the factors behind it are evolving.
More specifically, the once taboo industry of sports betting is poised to potentially change the game – literally. Sports betting will revolutionize the fan experience and we’ve already begun to see changes that hint at this.
New integrations, like the first in-arena sportsbook where fans can wager on games in-person, as well as increased legalization of sports betting across the nation, show how sports betting is becoming a strong driver for industry growth.
In addition to creating growth in the market, these changes are also creating new revenue streams. We see three opportunities for new and increased revenue streams in the future.
- Enhanced accessibility: Whether it’s at home, in-person at a sporting event, or somewhere in between, sports gambling can now meet you wherever you are. New stadia are integrating betting into the live game experience for fans, adding sportsbooks on-site and partnering with established gambling institutions.
- Unique consumer experience: In addition to having favorite teams that they watch, many fans also participate in fantasy leagues, giving them a deeper insight into teams, leagues and players.
Sports betting is a natural extension of the fantasy and fan experience that can seamlessly fit on top of various fantasy platforms. Social media is also poised to make a significant impact here, having already revolutionized the fan relationship with athletes, leagues and brands.
- Media integration: Sports and media go hand in hand, so it’s not a stretch to imagine how networks that already dedicate much of their programming to sports would integrate betting into their viewers experience.
We’ve already seen substantial investments from major networks toward two sports-betting platforms, making this integration only a matter of time.
Speedy transactions
In addition to these opportunities, we also need to consider the impact emerging technologies will have on a world with widespread legalized sports betting to make it seamless and enjoyable. One technology that will be crucial to this experience is 5G.
Major telecoms providers have already rolled out 5G capabilities at stadia in the US. As sports betting increases in legality and popularity, 5G will be key to enabling lightning fast transactions wherever fans are placing bets.
Alongside 5G, telecom providers have also rolled out augmented reality (AR) features at stadia. These features leverage life-size digital versions of players and live stats overlaid on the field when using certain smartphones.
Lastly, with millions of dollars on the line, fans want to know that their transactions are safe and secure – the perfect application for blockchain. This emerging technology is often tapped for highly regulated industries with sensitive data, and sports betting won’t be any different.
As it becomes more integrated into the game viewing experience, sports betting has the potential to reshape entire revenue streams, making an impact on league and media rights values.
One thing is certain, leagues and media rights holders have a huge opportunity to capitalize on this growing trend to drive deeper viewer engagement using emerging technologies to create a never-before-seen experience for die-hard fans and new audiences alike.
[Bio] As a sports professional with 25 years of experience in finance, accounting, league and team operations, Mike Keenan leads the accounting firm’s US sports practice across lines of service (assurance, advisory and tax) and provides services to both professional and collegiate teams and leagues. He has previously worked for the NFL