Sports and gambling have long shared a complex and mutually beneficial relationship for centuries. These two distinct industries have worked hand in hand for centuries, with punters betting on different sports events from horse races in ancient Rome to modern soccer games.

In recent years, the proliferation of online sports betting has brought these two markets even closer, despite many being concerned about the impact of betting on the integrity of sports. This article explores the relationship between sports and gambling, the potential benefits, the rise of sports betting, and the risks associated with this intersection.

The history of sports and gambling 

The relationship between sports and gambling stretches back centuries. In ancient Rome, sports enthusiasts would bet on gladiator battles and chariot races hosted in arenas. During the medieval times, betting on jousting tournaments was a popular pastime.

In modern times, gambling on sports has increasingly become popular, with people betting on everything from horse racing to soccer, basketball, and other sports. This growth in popularity has given rise to new opportunities and challenges for sports and gambling. However, Jurisdictions like Vermont are yet to legalize sports gambling – for more information see here.

Despite the legal hurdle in many jurisdictions, the advent of innovative gambling platforms is allowing punters to effortlessly experience the thrill of betting on sports. As a result, the global sports betting market was valued at $81.03 billion in 2022 and it’s expected to hit $167.5 billion by 2030.

The growth of the sports betting market

The rise of the sports gambling market is attributable to factors like the proliferation of online bookmakers, the legalization of online sports betting in some jurisdictions, and the growing attraction towards sports.

In 2018, the United States Supreme Court overturned the federal ban on sports gambling, allowing different states to regulate and legalize the activity. Today, over 20 US states have legalized betting on sports, and the industry is set to keep expanding.

The popularity of the sports betting market isn’t only limited to the US as many countries have embraced the industry to increase their revenue basket. In 2021, Canada passed a bill to legalize betting on single-event sports across the country.

In Asia, betting on sports is also becoming a popular pastime, even in countries that haven’t legalized the activity like Japan and China. However, countries like the Philippines and Singapore have developed legal and regulated sports betting industries for their residents.

How does gambling affect the integrity of sports?

While the intersection between gambling and sports has been mutually beneficial to both industries, there are growing concerns that it might impact the integrity of sports. Some industry experts still fear that if many people are gambling on sports events, they are more likely to influence the results. That can be achieved through match-fixing, where the match officials or players intentionally manipulate the results of a match to benefit punters.

Match fixing can also be done by sharing insider information that gives a team or players an unfair advantage over their opponent to benefit the punters. To avoid these risks, many sports franchises have set strict rules related to betting and have partnered with reputable sportsbooks to monitor suspicious activity. Additionally, modern tech has made it easy to detect potential insider trading and match-fixing cases.

Besides match-fixing, corruption remains a major cause of concern for many people in the sports market. A recent study shows that approximately 1% of international athletes are involved in match-fixing and corruption activities related to betting. That highlights the need for continued vigilance to stop corruption in sports.

Potential benefits of the intersection between sports and gambling

Despite the risks, the convergence of sports and gambling can yield numerous benefits for both industries. For one, this confluence can generate revenue for sports franchises and the local economies. In fact, sports betting has proven to be a lucrative industry that can generate millions of dollars in fees and taxes. This revenue can be used to fund infrastructure projects and support other public services.

Gambling can also increase people’s interest in sports since people are more inclined to watch games when they are financially invested in the outcome. The heightened interest in sports leads to a boost in ticket sales, TV ratings, and sponsorship deals, which positively impacts the sports market. A recent study also shows sports betting enhances fan engagement as they become more invested in the game’s outcome.

Potential risks of this convergence

The intersection of sports and gambling can also lead to several risks. For starters, betting on sports can lead to problem gambling, which can have devastating effects on families and individuals. Additionally, the increased focus on sports betting instead of gameplay can diminish the joy of watching games for the sake of entertainment.

Conclusion

The intersection of sports and gambling has several benefits including the generation of revenue for sports franchises and the heightened interest in sports. However, individuals, lawmakers, and sports organizations need to follow the industry’s best practices to safeguard the integrity of sports. That includes implementing strict regulations to prevent corruption in sports and partnering with reputable betting companies to track any suspicious activity.

Sports fans in this era of abundant content have more viewing options than ever before. Currently, they navigate a mix of cable, broadcast, and streaming services on both big and small screens. Streaming, being increasingly popular, has emerged as a preferred choice for live sports, particularly among younger fans. As a result, sports organizations aim to monetize their rights and attract a changing consumer base. Streaming services, on the other hand, leverage live sports as a competitive advantage to combat rivals and reduce customer turnover. Let’s take a closer look at the on-demand broadcasting market and its evolution.

Historical Perspective

Television sets made their debut at the 1939 New York World’s Fair in the 1930s. This remarkable medium has become an ideal platform for broadcasting sports. NBC televised the first U.S. sports event, which was a college baseball game between the Columbia Lions and Princeton Tigers. The 1936 Summer Olympics marked the first internationally televised sporting event. Even during World War II, television continued to broadcast sporting events in the U.S., albeit with limited accessibility due to affordability.

It is undeniable that ESPN revolutionized sports broadcasting when it launched in 1979 as a basic cable channel. ESPN’s programming covered a wide range of sports, from popular games like basketball to niche sports like darts and bowling. ESPN gained immense popularity when it secured broadcast rights for the annual college basketball tournament, March Madness.

ESPN’s expansion has been remarkable since its inception. In addition to the flagship channel, ESPN now has seven other affiliated channels that are broadcast in over 200 countries. With the advent of ESPN streaming, the company gained international sponsors and even more viewers. Although most still have to use VPN technology to ensure the accessibility of the channel. Although there is controversy about this, people’s access to sports broadcasts for money is definitely not piracy.

The Streaming Revolution in Sports

According to the report “Globalization Lifts TV Sports Rights Past $85 Billion Future, Sports Rights Forecast to 2025,” the analyst observed that football will increase its dominant share of the pie from 25.1% ($12.8 billion) in 2018 to 37.4% ($31.9 billion) ) by 2025. This growth will primarily come from increased viewership of European top leagues in regions like Asia Pacific, including China, and North America. The report also highlighted the positive impact of globalization and greater streaming distribution on other sports, particularly basketball.

The report underscored the rise of direct-to-consumer (DTC) services as a threat to traditional broadcasters in the sports rights industry. It warned that sporting rights holders must adapt to the growing reality of DTC if they want to remain major players in sports video distribution. In addition, the report emphasized the maturation of streaming, which intensifies competition for rights and transforms the viewing experience through personalization, interactivity, and innovative presentation with ancillary content.

Globalization of Sporting Events

Some people worry about cultural impact and cross-cultural exchange, which come into our lives through the Internet and streaming services. Should we be afraid of globalization? What’s wrong with more viewers being able to watch NFL, NBA, and European soccer? Moreover, advanced fan engagement opens up more opportunities for personalization, improving revenue models, and financing sporting events.

Challenges and Controversies

While streaming sports has opened up new growth opportunities, it also poses challenges and controversies. In some cases, major sporting events are only available through exclusive streaming services that require a monthly subscription fee. This can make it difficult for fans to keep up with their favorite teams and athletes without incurring additional expenses.

In addition, the rise of streaming technology has led to concerns about piracy and illegal streams being accessed by viewers. This not only presents a loss of revenue for sports organizations but also raises ethical considerations regarding the consumption of content without proper licensing or permissions.

The Cultural and Societal Impact

The globalization of sports through streaming has also had an impact on culture and society. With the ability to access a wide variety of sports from different regions around the world, viewers are exposed to new cultural norms and traditions. This can lead to greater diversity and understanding among people, as well as potentially changing societal views on certain issues.

Moreover, with the rise of social media and online communities, sports fans from all over the world can now connect and discuss their favorite teams and players in a global forum. This further enhances the sense of community and brings people together through their shared passion for sports.

Future Trends

#1 8K and virtual reality (VR)

YouTube, Amazon, and Netflix announced in March 2020 their plan to reduce video streaming bitrates in Europe during the pandemic to prevent overwhelming internet infrastructure. However, even during the best times, streaming high-quality videos can be quite challenging, especially for mobile users.

Fortunately, there are emerging technologies that allow for streaming higher-resolution videos without sacrificing speed. One of these technologies is the new H.266 video codec, also known as Versatile Video Coding (VVC). It is reported to reduce required bitrates by half. This implies that users may be able to stream 8K video with just 43 Mbps instead of the current requirement of 85+ Mbps, once H.266 becomes widely adopted. Also, case studies indicate that virtual reality (VR) is part of future trends and only time separates us from the integration of this technology.

#2 Integration of social media and second-screen experiences

Around the globe, video constitutes 60% of all downstream internet traffic. However, it’s not limited to live streaming. People frequently engage in watching videos on social media platforms. Remarkably, YouTube, the second most popular website worldwide, encompasses individual channels with over 200 million subscribers. Additionally, other social networks have introduced their own video-focused platforms, such as the rapidly expanding Facebook Watch (alongside its counterpart, IGTV).

#3 More TV channels will move to the streaming segment

Many traditional TV networks and media companies, apart from offering niche services, are now vigorously competing for streaming audiences. An example of this is NBC’s Peacock, which had a nationwide launch in the US in July 2020 following a preview for Comcast customers in April. Comcast also owns Xfinity and offers the Xfinity Stream streaming service through it.

Another recent launch is HBO Max, although it’s essentially an upgraded version of the older HBO Now service it replaces. CBS has its own service, CBS All Access, which was launched back in 2014 and is owned by ViacomCBS. ViacomCBS also acquired the streaming service Pluto TV for $340 million in 2019.

Conclusion

Now activism is too overdone with many processes, including social issues and inclusivity in sports streaming. Yes, the world is changing and second-screen is no longer some kind of luxury. We are confident that innovation will continue in all areas of social media and growth in this segment is inevitable. On the other hand, there are some arguments for fears, such as regulation and legal considerations. However, implications for growth are the adoption of sports content and data privacy protection at the regional and international level. Over time, all this will be settled and will be able to operate smoothly and reliably.