Keeping an eye on the stock market, they will have seen some real increases in fintech stock prices. Many experts in the field are attributing this to the massive rise of sports betting online. Why has the industry managed to bolster the price of fintech stocks in such a substantial way?
The Rise Of Online Sports Betting
Firstly, it’s worth having a look at how the sports betting industry has thrived since so many brands have made their way online. There have been a lot of brands who have been available online in one way or another since the turn of a 21st century, but online betting really took off thanks to the pandemic.
Any betting stores and other venues had to close, if you wanted to bet on an event you had to do it online. Brands who were looking to protect their business of course moved all of their practice online as soon as possible, and even more brands began to open. You will see so many different betting sites being launched in the time after 2020, showing just how much of a thirst there is for online betting.
Even in the years since the pandemic, the demand for online betting has not slowed down in any meaningful way. Of 2022, online sports gambling was seen to grow 36.3% since 2020. That translates into revenue of $4.54 billion for 2022. It’s clear that online betting is here to stay, and sports punters are more than happy to take advantage of it.
Sports Betting And Fintech
How does sports betting intersect with fintech and the growth of this technology? It’s all thanks to how online bookmakers are processing transactions.
While in a bookmaker office or other physical location, you would simply use your debit or credit cards or cash to make payments. Online though, there are much more options available to members of online betting sites. Services such as PayPal and Apple Pay are in great demand on all betting sites, as members find them the easiest option to quickly make transactions. Of the top 10 bookmakers found at topbetting.ie, we found that 8 offered PayPal and all offered Apple Pay. There are a huge number of other eWallets or online payment options that people can use as well, including Trustly, Skrill. Neteller, Payz, and so many more.
As well as ease of use, these services offer a lot of peace of mind. When customers are hesitant to share debit or credit card details online, they can use an eWallet because these offer an extra layer of security. Thanks to this extra security, it is much easier for new members to get on board with sportsbooks, and start betting online.
Of course, because so many people are now using the services, stocks in services like PayPal are beginning to rise.
Online Sports Betting Services
The line between fintech and sport betting is blurred further, by the introduction of a number of different sports betting online products as well. These allow punters to make bets much more easily, no matter where they are.
For example, let’s take a look at service DraftKings. While it has seen some ups and downs in the recent years, in some of its most recent results it has seen some real profit. In the Q4 2023 report, their stock rose more than 15%. It was able to deliver a quarterly revenue of $85 million, which was 81% higher than Q4 2022.
With such incredible profits being reported, it is difficult to see how much they could improve that in the coming year. However, pundits are confident they can deliver even bigger numbers in the 2024 financial year so they are a service to keep an eye on.
Profits In Online Sports Betting
Fintech companies can only start making these profits if they are working with successful betting companies. What is it that is making online sports betting so lucrative right now?
Because online betting is so much more accessible to a larger range of people, of course more and more people are contributing to those profits. Those who have never considered betting before have decided to give online betting a try, because it is so easy to do so.
Also, thanks to how online gambling works, betting sites can accept much lower bets. That’s actually helps bring in more profit, as more punters can get involved without having to drop huge amounts of cash on the bets they make.
With more and more businesses solely trading online, it really makes sense for sports betting to make its way online as well in such a big way. Like so many other Industries, they have gone with customer demands and have seen their profits increase because of it.
With all this in mind, you can see why fintech stocks are rising so drastically thanks to sports betting. If you are interested in trading in fintech stocks, now is a very good time to do so.