In the process of evolution, sport rises to the level of a respectable industry and acquires status as an integral constituent of many developed economies of the world. The knowledge of the significant contribution of modern sport to general and economic development based on the principles of the free market and the application of the economic principles of a market economy in sports also contributes to this. The development of both the economy and sports is inconceivable without the regulatory role of the market, which activities sport gives weight to the market category.
Contemporary tendencies suggest that sport should be seen as an industry because in the process of development of sports activities, they also developed the accompanying scientific activities. Noticeable is the developmental transitivity of the sports industry into an economic force with exceptional growth and with a strong influence on a number of areas of activity within society with special emphasis on the macro and micro level. Despite the partial immeasurability and the associated subjectivity, the areas of influence are different, and include economic, social, cultural, health, educational, scientific, technical-technological, legislative-legal, and political aspects of the social community.
If the illegal market, the gray zone that is not sufficiently regulated, and the completely legal market are taken into account, close to a thousand billion dollars are spent annually on sports betting today, experts say.
Sports betting is a global phenomenon. However, a new report on the extent and impact of sports betting also looks at how much criminal elements are rooted in it and how many they use sports for money laundering and other illegal activities.
According to this site, fans are not only cheering for their favorite national teams, many are looking forward to betting on matches. And the World Cup does not interest them in that sense – on a global level, there has been a craze for betting, be it football, cricket, tennis, and all kinds of competitions.
The accelerated development of overall science, but also the ever-increasing level of education, has a strong impact on the human knowledge whose doubling also affects the very well-being of humanity, and which enables a significant shortening of working hours and the opening of a large space of free time. Therefore, the interdisciplinary connection of sport and economy is expected and a lot of different possibilities. Sports socio-economically significant activity necessarily uses economic principles and procedures on the principle of market economy and thus shapes the sports industry.
Bookmakers have taken over sports arenas, their commercials revolve around the courts and invite the audience to bet. And a cursory look at revenue trends in the global betting business shows that this initially modest business has meanwhile developed into a powerful industry. Laws have played a key role in the relationship between sports and gambling. The world sports betting industry generated approximately $ 36 billion in revenue in 1998. Total sports betting revenue rose to nearly $ 56 billion in 2003. The industry more than doubled in the next five years, to $ 120 billion in 2008. Since then, the sports betting industry has seen an almost incredible leap – FIFA estimates that sports betting companies are turning over $ 300 billion today. This figure best shows why the gambling industry has taken over the world of sports – countries that collect huge taxes have found their benefit in the sports gambling business, as well as clubs through sponsorships of the same industry.
We know that sports betting is illegal in most American countries. However, what we have to say is that the legalization of this type of betting brings many benefits, and by this, we mean tax money and the creation of new jobs.
Job creation
It is not easy to find a job today. Especially well-paid. In the past years, states have been working on a major project which is to provide a better future and good job position to youth. Bearing in mind lots of money is in the game when we talk about sports betting, we can say that people who are privileged to work there can earn quite good money. Also, as the betting industry growing, job opportunities are growing, too.
Government revenue
We have already mentioned that everyone has a profit from spot betting, including the state. Win-win situation. Why do we say this? Simply put – the sports betting industry is obliged to pay a tax that is quite high. So the government collects money from them. It is difficult to say what the amount is, but we are talking about billions annually. Throughout this story, we must note that some states rely on this money to solve serious financial problems.
Betting and technology
The link between technology and betting is more than obvious, especially today when the coronavirus rules the world. In the last year, online betting has become more popular than ever before. In addition, well-known bookmakers offer to bet during live broadcasts, which raises the game to a higher level. When we talk about technology, we will notice that payment options have also advanced – you can make a payment via mobile devices, blockchain, and so on. All this tells us that the global economy and sports betting are inextricably linked and mutually influencing each other.
Final thoughts
The connection between the economy and sports is also realized through free time as an economic category, because free time and the way of its use are part of people’s standards, and thus it also realizes its economic function. Whether the goal is to create and design the same, similar, or substitute, as well as complimentary, products and services according to the needs and wishes of consumers, sheds light on the concept of industry. With sport as a very complex and multifunctional activity intertwined free time, active lifestyle, physical activities, competitions, kinesiology, production of equipment, and various services, it is justified to accept the term “sports industry”, which is not possible without applying the basic assumptions and principles of economics. The level of development of the sports industry is certainly conditioned by the general state of an economy. However, the role of the sports industry can be stimulating, ie. stimulating for the development of the overall economy and its international exchange because taking into account the overall potential effects and impacts of the sports industry and sports marketing, quite realistic estimates of incentive opportunities both in national frameworks and in international exchange.
