In the 2016/17 English premier league season, 10 out of 20 football teams were sponsored by betting companies. It was the first time a top-tier league had more than 40% of jersey sponsors being gambling firms. So, what’s driving the craze?
Huge companies love to be associated with sports and entertainment. Whether it’s TV or sports, brands pay billions to be associated with franchises. The Japanese tires’ company Yokohama, for example, paid Chelsea football club $52 million starting 2017 to have its name appear on the club’s jerseys. Airline Company Fly Emirates paid Arsenal $45 million while AIA insurance paid Tottenham $45.5 million.
So, where do betting companies get all the money?
Without a doubt, sports betting is highly profitable for the companies. The industry is worth more than $130 billion in the US alone. Around the world, the casino and sports betting industries are valued at over $400 billion.
The average betting firm in 2018 supports gambling for all kinds of sports. Unlike in the past, you can bet on any sport and tournament on one website. From soccer to basketball, eSports to Hockey, every website aims to attract all types of punters. Online firms boast of revenues of up to $37 billion from sports betting related activities.
Nearly every sports betting company offer other gambling games. Many online casinos also support betting. The two forms of wagering go hand in hand. However, sports betting is viewed more positively than the other. Where sports gambling firms can legally sponsor clubs, online casinos can’t. Despite that, the companies continue offering slot games on their sites to increase revenues.
Statistically, slot games are also more popular among gamblers compared to sports betting. And the reason is simple. There are no skills needed. Between the clinking sounds and buzzing lights, you only need to press a button and wait for a chance to win money.
There is no hard work needed and no nights spent trying to follow the outcome of games. Slot games are also numerous and different in nature. They offer great variety, which helps attract large pools of players. The best online casinos support up to 100 slot games each, most of which also come with bonuses.
Ever been to a land-based casino? You will get all sorts of services. From theme parks to restaurants, salons to bars, you don’t have to hassle. Hotel rooms are also owned by the casinos and so are the parking lots and surrounding businesses.
In addition to their gambling sites, hotel services provide casinos with great ways of making money. An average casino in Las Vegas could make $70 million in gambling activities alone. However, its revenue from hotel services could be $200 or more.
According to one study done in the Nevada area, casinos made about 36% of their gross profits from gaming. Nearly 48% was accrued from hotel rooms, food, beverages, and other add-on services.
You think sports betting is big, table games provide the highest amount of cash for casinos. The total revenue accrued from games Baccarat, roulettes and craps are combined is more than that of sports betting and slots. In the same study done in Nevada, gambling firms made about 50% of their profits from pit games.
Of course, the study favored pit games because they are highly popular in land-based casinos. But still, betting firms make millions of dollars on table games. Online, baccarat, and Blackjack are some of the most popular games. They are present on every gambling platform and make up the most games offered in live dealers.
In between the free spins and bonuses, casinos lure you with games you want to keep playing. The modern Poker, Blackjacks, and franchise-based games are bespoke, action-packed and designed to hook you immediately you begin to play.
3D games nowadays are accompanied by soundtracks from real music. The storylines are licensed from bestseller authors. The characters are your heroes in blockbuster movies. Even slots, which don’t need storylines, are impressively designed. Their sounds, lights and sound bites make you enjoy gaming.
Nearly every casino game is designed to be re-payable. If you’re like most players, chances are that you don’t even play many games. But you have a few selections that hook you into gambling whether money is involved or not.
If you’re a fan of online casinos, you probably already know a few of the top betting firms sponsoring clubs. The firms probably serve your country. They are present in your neighboring country and other continents as well.
Gone are the days when casinos were limited to serving one or a few countries. The Internet revolutionized the gambling industry. Not only can a modern casino serve more than 100 countries, it can become popular in the specific countries.
Aggressive marketing combined with a growing admiration for gambling means casinos benefit a lot. In countries like Australia, nearly 80% of the population engages in wagering activities. The numbers in Singapore are high as well and so are in many other countries.
The Mobile Industry
Retail businesses talk of how sales have shot up since people started using smartphones. But studies show casinos grew much faster after they started offering services to mobile users. In fact, gambling platforms rank up high together with social sites in attracting customers that use mobile phones.
Almost every casino worth its salt nowadays has an online presence. Whether it’s a website or social media pages, every company wants to draw social media users. Most companies own both a website and active social media accounts.
Casino companies that offer their services to mobile device owners consistently make more money than those that don’t. With nearly 3 billion people expected to own smartphones by 2020, wagering firms will continue to make more money from the target group.
Betting companies are outshining other industries in sponsoring clubs. They will probably continue to dominate sponsorships as they rake up more revenues from sites and other activities. Most of the companies don’t depend on sports betting alone though.
Due to the closeness between sports betting and casino games, a majority of the companies provides all gaming related activities.