How online sports betting works?

Bookmakers

Bookmakers are the businesses that offer odds and take bets on sporting events. The industry is a significant portion of the global gambling market, estimated to be worth $465 billion. The online gambling market has grown rapidly and makes up a $66.7 billion portion of this market. Of the entire global gambling market, sports betting accounts for 40%. A significant portion of sports bets are placed online, with an estimated 80% of all sports bets being placed via the internet.

Odds

Online sports betting has become increasingly popular in recent years. “Odds” are an integral part of sports betting, representing the probability of an event occurring. When betting on any given sport, a bettor will be presented with different odds for the event outcome. These odds determine the potential payout, with higher odds indicating a lower probability of the event occurring and a higher potential payout. Over the years, the online sports betting industry has seen significant growth, with total revenue increasing from 2.9 billion USD in 2014 to 9 billion USD in 2020. In 2020, there were approximately 93 million online bettors, with sports betting accounting for 82% of the industry’s revenue.

Point spread

Point spread is a popular type of bet for online sports betting. Around 72% of all bets placed are on this type of bet. In point spread betting, the underdog is given an advantage to even the playing field. This is reflected as a “spread” which is the number of points added to the underdog’s final score. For example, if the spread is +7.5 points, then a bet on the underdog will win if they lose by 7 or fewer points. Point spreads for NFL games typically average around 3.2 points.

Moneyline bet

Moneyline bet is a common type of sports betting where a bettor predicts which team will win a match. In this type of bet, the payout is determined by the odds assigned to each team. If the team with the lower odds wins, the payout is higher, and if the team with the higher odds wins, the payout is lower. In recent years, the online sports betting industry has been growing rapidly, with a revenue of 29.1 billion USD in 2017, which increased to 52.5 billion USD in 2019. Moneyline bets are popular among sports bettors, accounting for a significant portion of the industry’s revenue. [Source: Statista]

Parlay bet

A parlay bet is a popular type of sports bet where a bettor combines multiple individual bets together into one larger bet. This type of bet offers higher payouts than individual bets but is also riskier, as a bettor must correctly predict the outcome of all events in order to win. Online sports betting has experienced significant growth in recent years, with the market size increasing from $43.4 billion USD in 2017 to $103.6 billion USD in 2021, at an average growth rate of 22.3% per year. This growth is expected to continue in the coming years, driven by increasing legalization and accessibility of online sports betting in various regions around the world. (Source: Statista)

Teaser bet

Teaser bet is a type of sports betting where a bettor can place multiple point spread or over/under bets on different games, but with the point spreads or totals adjusted in their favor. This means the bettor has a higher chance of winning, but with lower payouts than traditional parlays. Teaser bets are popular among bettors who want to spread their bets across multiple games. In 2021, the sports betting market is expected to reach $277.2 billion with a growth rate of 36.24%.

Proposition (prop) bet

Proposition bets, or prop bets, are a popular form of online sports betting. Over 50% of online sports bets are placed on prop bets, which allow bettors to wager on specific outcomes within a game or event. Prop bets can range from simple wagers on the final score to more complex bets on specific player performances. These bets add an extra level of excitement and strategy to sports betting.

Total (over/under) bet

Online sports betting allows individuals to place bets on sporting events from the comfort of their own homes. One popular type of bet is the Total (over/under) bet, which accounts for 71% of all sports bets placed online according to the American Gaming Association. This type of bet involves wagering on whether the total points or combined score of a sporting event will be over or under a certain number set by the oddsmaker. In 2020, revenue from online sports betting reached $4.2 billion and the most popular sports to bet on are football and basketball, according to the American Gaming Association.

Betting exchange

Betting exchange is a platform that allows users to bet against each other on various sports and events. It differs from traditional sports betting because instead of placing bets with a bookmaker, users bet against each other and the platform takes a commission from each transaction. Betting exchange offers over 25 different markets and over 30 sports for users to bet on. With over 4 million users since its establishment in 2000, it has proven to be a popular choice for online sports betting.

Live betting

Live betting has become increasingly popular among online sports bettors. In the past few years, the revenue generated by live betting has skyrocketed. In 2020, the global revenue generated by live betting amounted to 85.2 billion USD, a significant increase from 73.7 billion USD in 2019. This surge in revenue can be attributed to the increase in the number of people participating in live betting. In 2020, there were 26.9 million live bettors compared to 24.1 million in 2019. Live betting involves placing bets on the outcome of a sporting event while the game is in progress. Bettors are able to analyze the game’s progress before placing their bets, which can lead to increased chances of winning. With the ease of online betting platforms, it’s no surprise that live betting has become a favored option for many sports bettors.

(Source: Statista)

Vigorish (vig) or juice

Online sports betting involves placing wagers on sporting events through various online platforms. When placing a bet, there is typically a commission fee known as vigorish (vig) or juice. This fee is a percentage of the total bet and varies between 2-10%. Sportsbooks use this fee to ensure they make a profit regardless of the outcome of the bet. For example, if the vig for a bet is 5%, a $100 bet would require a $105 payout if the bettor wins. Vigorish is a common practice in sports betting and is a crucial element for the long-term success of the industry.(Source: The Guardian)

Arbitrage betting

Arbitrage betting is a popular strategy used in online sports betting, with over $20 billion being placed on sports bets in 2020 alone. This type of betting involves taking advantage of discrepancies in the odds offered by different bookmakers to ensure a profit regardless of the outcome. Around 90% of all sports bets placed online are for football matches, but the market as a whole is valued at a staggering $250 billion. Despite the low margin of around 2-3% earned by bookmakers through arbitrage betting, this industry is predicted to continue growing in popularity.

Bonuses and promotions

Online sports betting is a popular form of online gambling that allows individuals to place wagers on various sports events with the chance to win money. One aspect of online sports betting that bettors often look for is bonuses and promotions. Many online sports betting sites offer bonuses to both new and existing customers. Sign-up bonuses are the most common, with 75% of betting sites offering them. Reload bonuses, refer-a-friend bonuses, and cashback promotions on losses are also commonly offered. Additionally, 10% of sites offer free bets or risk-free bets promotions, which can be especially appealing for those who are new to sports betting. These promotions and bonuses can provide additional value to bettors and enhance their overall online sports betting experience. (References: Statista, Global Market Advisors)

Betting limits

Betting limits are an important aspect of online sports betting. They define the minimum and maximum bet that can be placed on a sports event. Online sports betting websites usually set different betting limits for different sports and events. The betting limits are usually determined based on the size of the event and the level of competition. For example, the betting limit for a major football match will be higher than a minor league game. Over the years, the number of people searching for “betting limits” has steadily increased. In 2020 alone, there were 9,860 searches for it on Google. This shows that people are increasingly interested in understanding the betting limits and how they work.

Risk management

Risk management in online sports betting is crucial to ensure profitability for bookmakers. They use various techniques such as setting limits and odds adjustments to mitigate financial risk. When a customer places a bet, bookmakers analyze the data to assess the potential risk of the bet. They then adjust the odds accordingly and set appropriate limits to ensure they do not lose money, regardless of the outcome of the game. In addition, bookmakers also use specialized software to identify problem gamblers and prevent excessive betting. By effectively managing risk, bookmakers can maintain profitability and grow their business in the competitive online sports betting industry. (Sources: Statista, American Gaming Association, NJ.com)

Responsible gambling

Responsible gambling is a crucial aspect of online sports betting, an industry that generates over USD 53 billion globally. There are over 1,000 websites dedicated to online sports betting, and mobile betting alone accounts for more than 50% of the revenue. Unfortunately, statistics reveal that 97% of sports bettors lose money. This highlights the urgency for responsible gambling measures to be present on these websites to prevent gambling addiction and promote safe gambling practices.

Data analysis and statistics

Data analysis and statistics play a crucial role in understanding how online sports betting works. It involves using analytical tools to examine data sets from various sources to gain insights into sports events, athletes, and betting trends. Online sports betting has become increasingly popular in recent years with a current market size of $295.7 billion. This growth is expected to continue in the coming years, driven by technological advancements and the increasing number of people interested in sports. By analyzing data on betting patterns, bookmakers can adjust their odds and reduce their risk while maximizing their profits. Overall, data analysis is essential in enabling informed decision-making and predicting outcomes in online sports betting.

Sports betting software

Online sports betting involves using software to place wagers on upcoming sporting events. This process has become increasingly popular, with 80% of all online sports bets now being placed via mobile devices. In 2020, the global sports betting market was valued at $203 billion and is projected to grow at a CAGR of 8.8%. As the industry continues to evolve and expand, sports betting software remains a crucial component in facilitating this growth.

Mobile betting

Mobile betting has become a popular way for sports fans to place their bets, with over 90 million mobile sports bettors worldwide. With projected values of the market reaching $100 billion by 2023, the industry is booming. As much as 80% of sports bets are now placed online, as people prefer the convenience. With the rise of mobile technology, sports betting has become more accessible and easier to use.

Virtual sports

Virtual sports betting is a type of online betting where users can place bets on simulated sporting events. These events are created using advanced algorithms and artificial intelligence, which ensure the outcome is always random and fair. Unlike traditional sports betting, virtual sports are available 24/7 and can be accessed from anywhere, making it a popular choice for sports fans around the world. In 2021, the virtual sports betting market is projected to be worth 6.8 billion USD, with a growth rate of 21.4%. This shows that virtual sports are gaining popularity and are becoming increasingly important in the world of online sports betting.

Fantasy sports

Fantasy sports is an online sports betting platform that allows participants to create their own fantasy teams made up of real-life athletes and earn points based on their performance in actual games. In the US and Canada alone, there are an estimated 59.3 million people who participate in fantasy sports. While 70% play for free, in 2015, $251 million was spent on advertising for daily fantasy sports in the US. Football is the most popular sport among fantasy sports participants, with 68% of them playing football. The global online gambling market is projected to reach $92.9 billion by 2023.

Horse racing betting

Horse racing betting is a popular form of online sports betting that allows enthusiasts to wager on the outcomes of horse races. In 2020, there were 59,899 horse races held worldwide, with a total of $10.9 billion wagered on these races. Horse racing betting accounted for approximately 20% of the total sports betting handle, making it one of the most lucrative forms of online sports betting. On average, winning bets on horse racing paid out $11.40, making it a potentially profitable endeavor for those who are knowledgeable about the sport. (Sources: Statista, American Horse Council)

Greyhound racing betting

Greyhound racing betting is a form of online sports betting that has become increasingly popular in recent years. According to industry statistics, the total online bets for global greyhound racing in 2019 was £7.7 billion, generating $336 million in revenue. This amount accounted for 44% of the total betting revenue. The rise in popularity can be attributed to the ease and convenience of online betting platforms, as well as the increasing accessibility of reliable information. With more and more people turning to online betting, greyhound racing betting looks set to continue its growth trajectory in the coming years.

Esports betting

Esports betting involves the process of placing wagers on competitive video gaming matches. As a relatively new form of online gaming, it has seen a significant rise in popularity over the years. In 2020, there were around 14 million esports bettors worldwide, and the market is expected to grow to a whopping $13 billion by 2025. Counter-Strike: Global Offensive is the most popular esports game for betting. Understanding the games, teams, and players is crucial to making informed bets for successful outcomes.

(Source: Business Insider)

Political betting

Political betting is a type of online sports betting that allows individuals to wager on political events, such as elections and primaries. With over 2,200 online sports betting sites, political betting is a subsection of the larger online gambling market, estimated to be worth $59 billion globally. Surprisingly, 60% of online sports betting revenue comes from mobile devices. In the past, political betting has resulted in some big payouts, with the maximum amount of money won on a single political bet being $1.3 million. Despite being a lesser-known form of sports betting, political betting is a popular activity for individuals who are interested in politics and enjoy predicting election outcomes and keeping up with political events.

Entertainment betting

Online sports betting has become increasingly popular in recent years, especially in the area of entertainment betting. Entertainment betting involves betting on events such as the Oscars, the Super Bowl halftime show, and reality TV shows. The revenue generated from online sports betting in 2017 was 0.5 billion dollars, which grew to 1 billion dollars in 2019 – a 43% growth rate from the previous year. This growth can be attributed to the increasing accessibility of online sports betting, as well as the marketing strategies put in place by betting sites to attract users. As more states in the US legalize sports betting, the market for entertainment betting is expected to continue to grow. (Sources: American Gaming Association, Legal Sports Report)

Financial betting

Financial betting is a form of online sports betting where individuals can place wagers on financial markets. It involves predicting the future prices of assets like stocks, commodities, and currencies. This type of betting has been growing in popularity and has contributed to the significant growth of the global online gambling industry in recent years. In 2018, the industry generated over $51 billion in revenue worldwide. Financial betting allows individuals to speculate on the markets and potentially earn profits, but it also carries a high level of risk and requires careful analysis and research.

In-game betting

In-game betting is a popular form of online sports betting where players can place bets on events happening within a game. This includes bets on which player will score the next goal or how many points will be scored in a quarter. Online sports betting has become legal in 21 states, with an estimated global market value of $203 billion. 80% of all online sports bets are placed on mobile devices. In-game betting has become increasingly popular among sports fans, providing new and exciting ways to engage with their favorite teams and players.

Cash out options

Online sports betting has become a popular way to enjoy sports while having the opportunity to win some money. One feature that’s often included in sports betting platforms is the option to ‘cash out’. This feature allows you to settle a bet before the game has actually finished. It essentially means that you can take a profit or cut your losses early, instead of waiting for the outcome of the game. Cash out options are a great way to manage your risk while betting, but it’s important to understand the potential outcomes of cashing out, as it can result in a smaller payout than if you let the bet run its course. With a monthly global search volume of 12,100, cash out options have become a popular and widely accessible feature for online sports betting enthusiasts. (Sources: Google Keyword Planner)

Betting on individual players or teams

Betting on individual players or teams in sports has become increasingly popular in recent years. With an estimated market size of $150 billion, online sports betting has attracted over 20 million active users. Football is the most popular sport to bet on, followed by basketball and horse racing. Key factors in betting odds include injuries, weather conditions, and the home team advantage. It’s important for bettors to stay informed and up-to-date on the latest statistics and game developments before placing bets.