In recent years, the world of sports betting has seen some interesting new things that quickly gained quite some popularity: eSports betting & virtual sports betting. eSports betting is a very interesting emerging niche on sportsbooks, but today we are going to touch on some details about virtual sports. First, let’s find out what exactly these events are: unlike traditional sports events, virtual sports are computer-generated simulations, designed to mimic real-life games like soccer, horse racing and even tennis or some other sports. What makes them unique is that they’re always available—there’s no need to wait for live events, bad weather doesn’t cause cancellations and the outcomes are driven by advanced algorithms, making each game fair and completely unpredictable. While traditional sports betting can somewhat rely on statistics, historical results or other info to make bets with some chances to win, virtual sports have none of that, as their outcomes are entirely random.
Virtual sports betting has become more popular as various advances in technology were developing (and still are) – improvements in artificial intelligence, more and more realistic graphics and data analysis have made these virtual games more interesting and captivating than ever before. Bettors now have this fast-paced, always-accessible alternative to traditional sports, which has been especially appealing when many live events weren’t available, like during the COVID-19 pandemic. In a way, betting on these types of games resembles spinning the reels of slots games more than betting on traditional matches, given that they rely on the same technology (RNGs) to determine outcomes.
As virtual sports become more mainstream, they’re shaping up to be a significant part of the sports betting landscape. This article will dive into the world of virtual sports betting, breaking down how it works, why it’s growing so fast, the legal and ethical questions around it and what the future might hold. By the end, you’ll have a clearer picture of why virtual sports betting is likely here to stay and whether or not it can change the way we think about betting on sports, or simply develop as a separate niche.
Background
Virtual sports may seem like a relatively new phenomenon, but their roots actually go back several decades – the idea started with early video games that attempted to simulate real-life sports (which were also greatly popular among many demographics). Back then, the technology wasn’t advanced enough to create the lifelike experiences we see today, but these early games laid the groundwork for what would eventually become the virtual sports we now see on various gambling platforms.
The first ever virtual sports game was a baseball match and it was created all the way back in 1961[1]. As technology improved, especially in terms of computer graphics & simulation capabilities, virtual sports began to take up some space and become more interesting to betting companies, which eventually saw the opportunity to offer something different. With virtual sports, they could create continuous, fast-paced events that didn’t depend on real-world schedules or seasons. The biggest selling point of these events was the fact that they could be run around the clock, thus making it possible for bettors to place wagers at any time, without having to wait for a live game to take place – this obviously came with benefits not only for the bettors that could now wager at any time they wanted, but also for gambling operators that now had a new product that never runs out.
At first, virtual sports betting started small, with simple horse races or football matches, but it quickly grew in popularity. The use of random number generators (RNGs) made sure that the outcomes of these events were completely fair & unpredictable, which helped build trust among bettors. Although some can view the randomness of it all a bit less appealing, this type of “sports betting” completely eliminated the concerns of matches being fixed or other interventions from humans that could make things unfair; as long as bettors used reputable gambling services providers, they had the certainty that outcomes are completely random and everyone has equal chances at winning. At the same time, advancements in 3D animation made the events more visually appealing, creating a more engaging experience for users.
One of the big turning points for virtual sports came with the rise of online betting platforms. As more people started placing bets online, operators were eager to offer a wider range of options and virtual sports fit the bill perfectly: they were easy to integrate into existing platforms, didn’t require the same level of regulatory oversight as live (traditional) sports betting and provided an additional stream of revenue for betting companies. Bettors could quickly get involved and the fact that each event only lasted a few minutes meant they could place multiple bets in a short amount of time.
Key players in the Virtual Sports Betting Market:
| 1X2 Network | Digitain | Metric Gaming LLC |
| BetConstruct | EveryMatrix Ltd. | Microgame S.p.A. |
| Betgenius | FSB Technology | NSoft Corporation |
| Betradar | Global Bet Virtual | Playtech plc |
| Bet365 | Golden Race | Sportradar AG |
| Bragg Gaming Group | Inspired Entertainment, Inc. | Vermantia |
| BtoBet | Kiron Interactive | Virtual Gaming Worlds |
Data source: Credence Research, Virtual Sports Betting Market – Growth, Share, Opportunities & Competitive Analysis [2]
The real boost for virtual sports came during the COVID-19 pandemic – with live sporting events around the world being canceled or postponed, virtual sports betting really filled the gap. Many people who were used to betting on traditional sports found it easy to turn to virtual sports as an alternative and quite a few of them stuck with it even after live sports returned. The pandemic highlighted just how valuable virtual sports could be in keeping the betting industry active during uncertain times and overall how it is essential that any industry strives to grow and adapt to various new technologies in order to be able to survive various unforeseen circumstances.
The online gambling landscape did not slow down or see a decline during the COVID-19 pandemic. If we take a look at the European market revenue of online sports betting in 2019 versus 2020 and 2021, there is simply a steady increase that also continues after the height of the pandemic. If we compare with the gross gaming revenue of the land based gambling market in Europe, where we can clearly see the affects the closing down of non-essential establishments had on the market, there is no doubt left that the internet is much more resilient when it comes to special circumstances, and virtual sports betting is becoming a big part of this alternative to other types of gambling.
Data source: Statista Market Insights, Online Sports Betting – Europe [3], Statista Research Department, Gross gaming revenue of the land based gambling market in Europe from 2019 to 2021, with a forecast until 2027 [4]
Today, virtual sports betting has evolved into a global industry of its own and it now offers sophisticated simulations of not just the horse racing or football we had in the beginning, but also tennis, basketball, motor racing and many more sports. The technology behind it continues to get better and it is set the keep making the experience of betting on virtual sports even more captivating as time goes by. If you also add the growing popularity of online and mobile betting to the equation, it is clear why this niche has managed become an important part of the wider betting landscape, as it offers both convenience and entertainment for millions of bettors worldwide.
The Technology Behind Virtual Sports
The core of virtual sports betting is made out of some pretty impressive technology that makes it all work – let’s explain it further. Virtual sports aren’t live games; they’re simulations, created using powerful computer algorithms that can mimic real-life sports events like soccer matches, horse races and tennis games, among others. These algorithms control everything – from player movements to game outcomes – which makes each event feel dynamic and unique, kind of like a game (which is where these virtual sports first drew inspiration from, as mentioned before).
The main piece of technology that makes virtual sports run is the random number generator (RNG) – this is the same technology behind casino slots games, which ensures the fairness and unpredictability in each spin of the reels, but applied to simulations of sporting events. So, in summary, the same computer algorithm that decides which symbols a slot reel stops on, also decides where a ball goes in a virtual match, whether or not a kick is a goal, or the speed of a virtual horse or just about any details that determines the final outcome / score of a virtual match. The RNG is like the backbone of virtual sports—it’s what makes sure that the outcome of a virtual event is completely random and can’t be influenced by anyone. Given that bettors want to be sure that their money is spent with fair chances of winning, this is a great detail about virtual sports betting.
Another factor is the amazing graphics and animations: thanks to all the advancements in 3D rendering, virtual sports look more and more realistic. The players move in ways that mimic human athletes and the environments—stadiums, racetracks or arenas—are designed to look just like the real thing. This realism helps make the betting experience feel immersive, even though the event isn’t actually happening in real life.
Then there’s the role of artificial intelligence – AI is used to simulate player behavior, tactics & game strategy: for example, in a virtual soccer match the way players pass the ball or set up a play might be based on real-world data about how actual players + teams perform. AI helps make the experience feel more authentic, like you’re watching a real game rather than just a random simulation. Knowing about this and the RNG games, we now see that bettors are offered two types of virtual sports within the platforms they use – while RNG-based virtual sports still hold the majority, AI is moving in pretty close to it[5].
Data source: SkyQuest Technology Group, Virtual Sports Betting Market Size, Share, Growth Analysis [5]
Last but not least, data analytics plays a big role in virtual sports, both for the operators and the bettors – operators that run these virtual sports platforms use various data to refine the gaming experience, ensuring the events feel competitive and engaging. For bettors, the data—like player stats, historical outcomes, or trends—can be used to make betting decisions, just like in traditional sports betting, although one could argue that this type of data is way less relevant when an RNG is involved, although AI-based virtual sports could still benefit from it to a certain extent.
Together, these technologies create a betting experience that is best described as seamless and exciting. The speed, convenience and realism of virtual sports are a big part of why they’ve become so popular, as they offer quite the compelling alternative to live sports betting, especially when real events aren’t available.
Legal and Ethical Considerations
Just like it usually goes with anything related to gambling in general, virtual sports betting has some legal and ethical considerations to face as well. As we’re already used to from other types of gambling products, the legal landscape can be tricky especially with it varying greatly from country to country. When it come to the virtual sports betting niche, we see it being fully legal and regulated in some places, while in others it may be restricted or even completely banned. This obviously makes it important for both operators and bettors to understand the rules in their region before getting involved so that everyone can avoid losses and legal trouble.
One of the big legal concerns is regulation – since virtual sports don’t involve real athletes or events, they operate under different rules compared to traditional sports betting. At this point in time, governments are still figuring out how to regulate this growing industry. Some regions treat virtual sports betting just like traditional betting, requiring operators to follow the same rules, such as simple, basic things like getting licensed and ensuring fair play, obviously. However, other places still have no specific regulations for virtual sports yet, which can create kind of a gray area and many bettors tend to (rightfully) stay away from such things, as they do not feel like they have protection against unfair or abusive practices.
Then there’s the ethical side of things – one major issue is responsible gambling, the same thing that comes into play with tradition sports betting and casino games as well. Because virtual sports are available 24/7 and the events are so quick, there’s a risk that people might gamble more frequently than they would with traditional sports. Considering the way these matches play out and how they sometimes can feel more like hitting the spin button on a slot than betting on a sporting event, there is a concern regarding how easily it could lead to problem gambling. In general online gambling can more easily lead to addiction, with studies showing that “the availability 24/7 for gambling at home or remotely from an electronic device with “virtual money” increases accessibility and loss of control during gambling”[6]. This is why many operators are now offering tools like deposit limits, self-exclusion options and other measures to help bettors manage their gambling habits responsibly – and these are available for players regardless of the platform section that they use most, be it traditional sports betting, casino or live casino, eSports or virtual sports betting.
Another ethical consideration is related to fairness and transparency: since virtual sports are computer-generated, bettors need to have solid reasons to trust that the outcomes are random and not manipulated in any way, shape or form. This is where the use of random number generators (RNGs) comes inᅳas we’ve already clarified, these generators are what makes sure that every match or race is fair and unpredictable. At the same time, transparency is of great importance & operators need to be clear about how the technology works and what bettors can expect, so there’s no room for doubt about the fairness of the games.
Finally, some people compare virtual sports betting to traditional sports betting and question whether it’s truly a fair alternative, just like we have already done in previous sections of the article. The main thing is, unlike real sports, where you can study teams, players and stats to make more informed bets, virtual sports rely much more on chance. Some argue that this takes away the skill-based element of betting and turns it into something more akin to a lottery. On the other hand, supporters say that virtual sports offer a different kind of excitement and are just as legitimate a form of entertainment – we can’t deny that.
To sum it up, the legal and ethical considerations around virtual sports betting are still being discussed and as the industry grows, regulators and operators alike will need to stay ahead of these issues to make sure that virtual sports remain a safe, fair and fun way to bet.
Market Dynamics and Trends
The virtual sports betting market has been growing fast. There are quite a few reasons why it’s catching on with bettors around the world: first off, the convenience factor is huge as virtual sports are available 24/7, which means there’s always something to bet on, doesn’t matter which time zone you are in and it also doesn’t depend on a set schedule or anything like that, like in traditional sports. If you want to bet on a virtual sport match, you just don’t have to wait for a big game or worry about things like weather delays or cancellations, you can just navigate to your favorite platform that includes this service and start betting. This “always on” nature has probably been the biggest factor that made virtual sports betting a hit, especially during off-seasons or when major sporting events aren’t happening.
The accessibility of virtual sports is also a central factor that lead to so much growth of the virtual sports betting niche – they are easy to integrate in just about any online gambling platform and it generally does not have a complicated interface or anything like that. So with that in mind, it is clear that both new and experienced bettors can jump in and place their bets, also having the convenience of this service working perfectly across all devices, be it a computer, phone or tablet – downloading anything is also not necessary – unless the platform you chose has a dedicated mobile app or anything of sorts, you can usually go for any of their gambling products on a mobile browser for example, including the virtual sports side of it. Another aspect of these games is that a lot of the time they do not last a full duration of a traditional match of the same sport – they are faster and it makes betting quicker and more “high-action”.
As previously mention, the COVID-19 pandemic also played a big role in the rise of virtual sports betting – when live sports came to a halt, many bettors turned to virtual sports as a way to get their fix. Operators saw a spike in interest and since then, virtual sports have stayed popular even with the return of live sports. It’s clear that for many bettors, virtual sports betting has become a regular part of their gambling routine and they find value in them as well, even if the main preference remains with traditional sports. Real-life sporting events still carry a lot more complexity with them, as bettors can also have favorites, can be more passionate about the outcomes of the matches and oftentimes have emotional attachments to teams or players. With this in mind, it is clear that virtual sports are not really a competitor for traditional sports betting, but are simply developing as their own, separate, fun and dynamic niche.
We have to take a look at the numbers as well, out of curiosity maybe but also to prove that all the growth we have been talking about until now is actually real. From an estimated value of USD 12.61 billion in 2024, there is an expectancy for the market value size to reach USD 39.78 billion by 2031, with a CAGR 17.8% from 2024 to 2031[7]. Reports clearly show that the global market is expanding and it is expected to continue to reach new heights as the years pass by, with new operators entering the space and with the existing platforms offering more options for their users every day. We are seeing major online betting companies adding more virtual sports events regularly and some are even creating customized experiences, like virtual versions of some of the most popular and well loved football leagues or even horse races.
Data source: SkyQuest Technology Group, Virtual Sports Betting Market Size, Share, Growth Analysis [5], Coherent Market Insights, Virtual Sports Betting Market Size and Share Analysis – Growth Trends and Forecasts (2024-2031) [7]
When it comes to demographics, it looks like virtual sports betting tends to attract a younger crowd – this comes as no surprise, considering the technologies this niche is based on are newer and the older crowds tend to be a bit more skeptical about innovations and because traditional sports betting is still alive and well, and some people simply enjoy that and don’t feel a need for novelty. On top of that, the younger people also grew up playing video games and enjoying all sorts of digital entertainment, which allows them to better appreciate the mix of sports and technology that we see with virtual events. Another way to popularity for virtual sports is on the road to places where traditional sports betting is heavily regulated or restricted, although in some cases this alternative would fall more in a gray area than in a completely legal one.
Moving on to trends, it is clear that the technology behind virtual sports is still evolving and it will continue to do so, meaning that we can expect the events that we can bet on to look even more realistic and be more engaging in the future. As we’ve also seen with other gambling products (casino games for example) virtual reality (VR) and augmented reality (AR) are also a couple of technologies that could move things even further, bringing bettors is a life-like environment with the click of a button, maybe even simulating being in the stand at a virtual football match for example. Imagine placing bets while wearing a VR headset, feeling like you’re right there in the stadium or at the racetrackᅳthat’s the direction this market could be heading in.
With all of this in mind it is easy to get excited about the future, but we need to not forget that there are still some challenges in the way – competition is fierce not only from traditional sports betting but also from other forms of digital entertainment, like eSports. Although they all have their own characteristics and are in many ways very different from each other, many bettors tend to chose only one niche to bet on, depending on their preferences and interests. Traditional sports have a very well defined audience, eSports are also growing and brining in more and more people to love gaming in general and at the same time, virtual sports need to be as appealing and fun as possible to be able to attract and retain bettors. All in all, the market dynamics and trends show that virtual sports betting is still more than just a passing fad. It’s becoming a major part of the gambling world and with continued innovation and growth, it’s likely to stick around for the long haul.
The Future of Virtual Sports Betting
The future of virtual sports betting is looking pretty bright, with amazing technologies behind it that will keep driving towards a lot of exciting possibilities. One of the most promising things that could really bring virtual sports to new heights is the integration of virtual and augmented reality. VR and AR are surely going to be taking everything to the next level; like we’ve already mentioned before, just imagine how fascinating it would be to put on a VR headset and go straight to standing on the sidelines of a virtual football match or at the track for a virtual horse race. This is the kind of innovation that would bring virtual sports forward and help this niche of the betting world to stand out a little.
| Key Factors influencing the Virtual Sports Betting Market | Impact |
| VR technology advancements | Medium |
| eSports and Simulation sports rise | High |
| Lack of public awarness | Medium |
| Building trust and transparency | Medium |
| Expanding access (internet and smartphone penetration increse) | High |
| Innovation in Online and Mobile betting | Medium to High |
Data source: Coherent Market Insights, Virtual Sports Betting Market Size and Share Analysis – Growth Trends and Forecasts (2024-2031) [7]
The virtual sports betting environment will likely see some help from artificial intelligence and data analytics as well; right now, AI is being used as a tool that helps the simulation of players behaviors and even the outcomes of matches to seem as realistic as possible, although we are far from seeing the best it can do yet. As the technology improves, it is likely to get closer and closer to the most lifelike simulations that will closesly mimic strategies, tactics and all sorts of details that we normally see in real-world games. AI has the potential to analyze real sports data and use the info it gets to make players act more and more like real life athletes, as well as to reflect trends and performance levels from traditional sports. This could blur the line even further between virtual sports and live sports, making the betting experience feel even more authentic.
A geographical expansion of the virtual sports betting market is in the works as well; this niche is already popular in Europe, but other regions such as North America and some parts of Asia are just starting to catch on. With all of the recent changes to North American legislation regarding sports betting and casino games, it is likely that we will see various regulations be added for the virtual sports market as well. Even with things still in motion and sometimes unclear, North America is still a major contributor, accounting to approximately 30% of the global market[2]. More countries are going to gradually update their gambling laws to recognize and regulate virtual sports betting properly as well, so the global market is likely to see big growth in the near future. Some of this growth can also come from partnerships that might be agreed upon between traditional sports organizations and virtual sports developers, which will aid the creation of virtual versions of some of the most well-known leagues and events to attract more sports fans and bettors.
Virtual sports betting could benefit from the same type of personalization that is also being explored with traditional sports betting – advancements in machine learning and data analysis allows platforms to adapt betting options to individual users. An example of that would be the platform basing its recommendations for certain types of virtual sports or even events according to the data it has from your betting history. This way, users would have quick and easy access to lists of sports and events that they are very likely to actually choose for betting. This is a great incentive for bettors to come back for more and stay entertained on the betting platform.
When it comes to challenges that are also visible in the future of virtual sports betting, we already know that the biggest hurdle will be related to how these will be regulated and what laws will be defining or limiting them. Besides regulations, gaming control bodies will also have to make sure that the RNGs are used properly and are completely fair and a control over the measures for responsible gambling that platforms implement is also necessary. Just like any other form of gambling, virtual sports betting needs proper regulation and control in order for it to be approached by bettors with trust and openness, instead of skepticism and fear. Responsible gambling measures are essential, especially with how different virtual sports are from traditional sports, with their fast-paced nature that has higher potential to trigger problem gambling than its counterpart.
More challenges come from other betting niches that are in somewhat of a competition with virtual sports, such as eSports; there is a clear difference between these two types of betting, but there are also common points and they are both growing in popularity in parallel, and the more each of them comes up with interesting, captivating and engaging features, the more bettors it will attract. Given that both eSports and virtual sports rely a little more on the younger audience compared to traditional sports, it is essential for both of them to evolve in a way that keeps their respective users engaged and content.
Overall, the future of virtual sports betting is clearly full of possibilities – with advancements in various technologies and the expansion of betting markets, virtual sports are quite likely to become an even more prominent part of the betting world as time goes by. If operators can continue to innovate and adapt, there’s no reason virtual sports betting won’t continue growing and evolving into a major force in the global gambling industry.
Conclusion
We can confidently say that virtual sports betting is rising up to be a major player in the modern betting landscape, with the novelty it brings with its combination of the thrill of traditional sports betting plus the speed and convenience of a completely digital experience. The amazing technologies behind it, from AI to RNGs and the increasingly realistic graphics, make virtual sports a very appealing alternative to live sports bets, especially for bettors that enjoy a quicker, more smooth experience when wagering their money. The 24/7 availability and quick turnaround times are also features that especially appeal to the younger generation of bettors that are leaning more towards on-demand action.
The world of virtual sports has evolved a lot over the years, from the most basic simulations to the very engaging, dynamic and realistic looking events that are now offered within many reputable betting platforms. Even newer gambling sites are now showing up with virtual sports as part of their offer from the very beginning, since the market is continuously growing and the demand for this niche is worth the effort of implementing (which is not a huge one). The more online gambling in general is being embraced and properly regulated globally, the more virtual sports also gain.
The landscape ahead looks bright for virtual sports too; the future comes with potential for even more realistic simulations, immersive VR experiences and personalizaed betting options. Aside from all of the positives that we see in front, gambling operators, developers, governing bodies and bettors alike have to also consider the challenges like the potential regulatory hurdles and the competition from other digital entertainment forms, but it is likely things will keep moving in the right direction and everything will be addressed properly. We end the analysis on a positive note as well, acknowledging that virtual sports are here to stay, as it is hard to deny the appeal that the unique blend of excitement, accessibility and innovation that they offer has.
Sources:
[1] The Evolution of Virtual Sports – NetBet UK, 23 November 2018
[2] Virtual Sports Betting Market – Growth, Share, Opportunities & Competitive Analysis – Credence Research, 7 October 2024
[3] Online Sports Betting – Europe – Statista Market Insights, August 2024
[4] Gross gaming revenue of the land based gambling market in Europe from 2019 to 2021, with a forecast until 2027 – Statista Research Department, 14 August 2024
[5] Virtual Sports Betting Market Size, Share, Growth Analysis – SkyQuest Technology Group, July 2024
[6] Current Addiction in Youth: Online Sports Betting – Aragay N, Pijuan L, Cabestany À, Ramos-Grille I, Garrido G, Vallès V, Jovell-Fernández E., January 2021
[7] Virtual Sports Betting Market Size and Share Analysis – Growth Trends and Forecasts (2024-2031) – Coherent Market Insights, June 2024
