The rapid digitization of everything has bled into the world of sports betting. While placing wagers on physical sporting events remains the dominant form, virtual sports betting continues to carve out a niche and now is available at Scorito and other platforms. But does this fledgling genre have staying power or will it flame out as a momentary fad? This article will explore the current state and future prospects of betting on simulated sports.
Rise of Virtual Sports Betting
Virtual sports betting involves wagering on computer-generated games rather than real-life competitions. Everything from the players to the events themselves is an animation powered by algorithms and randomness.
While it may sound like a fringe concept, virtual sports have attracted a small yet devoted following. Revenue from simulated betting grew 30% in 2021 to $814 million globally. And some project it ballooning into a $94 billion industry by 2030.
Projected Global Revenue Growth for Virtual Sports Betting
| Year | Projected Revenue |
| 2021 | $814 million |
| 2025 | $5.8 billion |
| 2030 | $94 billion |
The numbers may seem optimistic given the niche status virtual sports currently hold. But what factors drive this burgeoning new vertical and could it become a mainstay?
Allure of Virtual Sports Betting
Convenience and accessibility serve as the main appeals of virtual sports wagering. Since the matches exist entirely online, bettors can access them any time. Most virtual games run on a continuous loop, starting a new event every few minutes. This provides constant action without having to wait on real competitions that follow set schedules.
The ability to bet on virtual matches also sidesteps any delays from canceled or postponed live events. And with simulated contests lasting just 2-5 minutes on average, bettors enjoy an instant gratification real sports cannot match.
Virtual sports also mimic popular real-life competitions like soccer, basketball, horse racing, and greyhound racing. This allows fans of those sports to wager in a familiar format. The view full article of presentation mirrors real sporting events as well, with realistic graphics and commentary.
Finally, virtual games simplify betting in some regards. Since computer algorithms power the action, there is no need to research teams, players, or track injuries and other variables. Some see this as a purer way to test one’s luck.
Concerns Around Virtual Sports Betting
Of course, a dependence on randomness and algorithms comes with its own risks. While convenience and accessibility drive the appeal, critics point to transparency and responsible gambling as major concerns.
Without human athletes, the integrity of virtual sports relies solely on the technology powering them. This introduces risks around bias and cheating within the algorithms that decide the outcomes. Unlike regulated sports betting, virtual wagering happens inside a black box.
“Virtual sports betting happens inside an opaque black box, which rightly raises some eyebrows.”
The UK Gambling Commission identified potential issues here and called for improved safeguards around virtual event integrity. They also cited responsible gambling as a concern given the continuous nature of simulated sports. Without downtime between events, it enables a more relentless pace of betting.
“The non-stop action creates an environment that encourages rapid, repetitive betting – which poses responsible gambling risks.”
Regulators globally continue reviewing virtual event policies to address these concerns. But the jury remains out on what suitable consumer protections might look like.
Future of Virtual Sports Betting
While virtual sports betting has seen growth, its long-term ceiling remains debatable. On one hand, past precedents like online poker saw meteoric rises before stagnating. And simulated sports face even more skepticism due to transparency and integrity questions.
But much like esports, virtual events have cultivated a niche audience that continues expanding. Innovation around gamification and interactive experiences may also boost its prospects. And the convenience will always resonate with some subset of bettors.
Ultimately, virtual sports wagering seems unlikely to overtake conventional sports betting. But its lower barriers to entry provide reach into untapped markets. If it can achieve better regulatory oversight and address responsible gambling concerns, this budding vertical may have room to run.
