What is virtual sports betting? Slotegrator's definitive guide

Virtual sports betting is rapidly gaining popularity, offering a fast-paced and immersive alternative to traditional betting. With virtual sports betting solutions, operators can provide non-stop action, allowing players to wager on simulated events like football, horse racing, and basketball anytime they want. Whether you're looking to enhance your online sportsbook with virtual sports betting options or simply explore this growing trend, our guide will get you up to speed on virtual sports.

What are virtual sports?

With all the different betting products out there, it can be hard to keep them straight. Let’s define exactly what virtual sports are.

Virtual sports are simulations of real sporting events that feature graphic representations of players, horses, greyhounds, or anything else, with the results determined by a random number generator.

The high-quality graphics that virtual sports feature closely mimic live events, as well as adding entertainment value.

Unlike real-life events, virtual sports games are not affected by external factors like weather or player injuries; instead, they are driven by random number generators (RNGs) to ensure unpredictability and fairness.

How does virtual sports betting work?

Betting on virtual sports mirrors the thrill of real-life betting, but with a digital twist.

Just like in actual sports, enthusiasts can place wagers on virtual competitions such as horse racing, tennis, and football. These simulated sports events offer familiar betting options. including predicting the outright winner, total score, over/under, finishing positions, and even parlay bets.

One of the key reasons why people bet on virtual online sports is that with countless races or matches happening around the clock, there’s always something to bet on. These events are brief, typically ending within a few minutes. This allows bettors to watch condensed versions of games or races, offering a fast-paced alternative to real sports events and enabling frequent betting opportunities. Players view it like this: more chances to bet equals more chances to win.

Instant results, familiar odds, and payouts just like live sports betting make virtual sports approachable for both newcomers and experienced bettors.

Are virtual sports rigged?

Betting on simulated sporting events might sound, at first, almost a little suspicious. How do you know you can trust the results?

There's a common misconception among casual players that virtual sports are manipulated to favor casinos or sportsbooks. This belief, however, couldn’t be farther from the truth. Virtual sports adhere to the same strict laws and regulations as all casino games, ensuring fairness and transparency.

It's understandable why some players might be skeptical. It seems all too easy for the sportsbook to rig the results. But the use of random number generators (RNGs) adds a high degree of unpredictability to virtual sports, similar to their real-world counterparts. This technology ensures fair gameplay and unpredictable outcomes.

What is an RNG?

A random number generator is an algorithm that, as the name suggests, generates numbers without any predictable pattern.

Applied to virtual sports, an RNG determines the winner of an event based on predetermined odds. This way, there may be favorites and underdogs, but predicting the outcome is impossible — for both players and operators. Technically, this makes virtual sports betting very similar to slots and roulette.

True randomness is very hard to produce: algorithms are predictable by nature. So a typical RNG either simulates randomness or uses some physical source as a base like atmospheric noise or the unpredictable fluctuations of hardware temperature.

There are many ways to set up an RNG for iGaming, with varying degrees of randomness, complexity, and transparency. Operators’ chief concern is that the RNG is sufficiently random, so players can’t discern a pattern and start predicting outcomes of virtual events. Players, on the other hand, need to be sure the operator is not manipulating the outcome in any way.

To guarantee that an RNG adheres to industry standards, online casinos and sportsbooks obtain Random Number Generator Certifications from independent labs. Also, certification is often required to legally operate in many regulated markets.

Is virtual sports betting legal?

It would be fair to ask: How legal is betting on virtual sports? As always, legislation varies greatly from one jurisdiction to another.

In many countries, virtual sports betting is regulated along the same lines as real sports betting. For example, most EU countries permit virtual sports betting under national gambling authority regulations. In the US and Canada, regulations differ by state and province. In parts of Asia, Africa, and South America, the legal landscape varies significantly, from strict prohibition to full regulation.

However, in areas where gambling is restricted or prohibited, virtual sports betting may also be banned based on local cultural, ethical, or legal norms. That's why it's crucial to check the laws of each jurisdiction you plan to operate in.

Popular virtual sports

There are a variety of virtual sports available to bet on, and more are popping up all the time. Here are some of the most popular games:

• Virtual soccer
• Virtual horse racing
• Virtual motor racing
• Virtual tennis
• Virtual basketball
• Virtual motorsport
• Virtual football
• Virtual cycling
• Virtual darts

Virtual, fantasy, and live sports betting compared

Virtual, fantasy, and live sports betting are each different forms of betting.

While virtual and live sports betting are technically distinct, they often appeal to the same demographic of bettors. The betting experience across both formats shares surprising similarities in terms of emotional and psychological engagement.

However, a significant divergence exists in the pacing and frequency of events. Live sports betting is characterized by lengthy intervals between matches or races. Virtual sports, on the other hand, have a much higher turnover rate — there are just minutes between game rounds. This allows bettors to place more wagers in a shorter time compared to live sports.

Virtual sports online betting are accessible 24/7 without any seasonal breaks or other disruptions.

The outcomes, although influenced by algorithms that utilize real statistical data, remain completely random. This randomness protects operators from losses that might otherwise occur due to inaccurate odds or bettors exploiting insider knowledge.

Of course, this is what sets virtual sports betting apart — despite their appearance, they have as much in common slot machines as they do sports betting, if not more. Bettors are unable to use strategic knowledge to influence their chances of success significantly. Some operators try to match virtual sports odds with real events for a traditional betting feel, but the industry hasn't yet set a standard for simulating live events like football games or horse races realistically.

If this were to happen, it would bring the discipline closer to another form of gambling — fantasy sports.

Fantasy sports, a form of betting first introduced in the mid-20th century, involves participants forming teams from real athletes and earning points based on these athletes' real-time performance in games. This model not only uses real-world statistics but also rewards knowledge and strategic planning, both elements that are missing in virtual sports betting. Fantasy sports betting’s reliance on live events aligns it with the pace of traditional sports seasons.

While inspired by fantasy sports, virtual sports represent more of an extension of the betting landscape rather than a direct alternative. Each betting style caters to different tastes, showing how sports betting can adapt and change according to consumer needs.

Advantages of virtual sports betting

Virtual sports offer a thrilling alternative for those seeking excitement in the absence of live events. Here are some key benefits of virtual sports:

For gamblers

1. Non-stop entertainment

Virtual sports events constantly take place and typically last only a few minutes, ensuring continuous action and eliminating the need for extended wait times characteristic of real-world sporting events. This attribute enhances the overall enjoyment and increases the likelihood of winning bets.

2. No prior knowledge is necessary

There is no need to read guides, play test rounds, or analyze statistics. Virtual sports streamlines the essentials of sports betting, so that anyone can start betting whenever they want.

3. The fairness of virtual sports is unparalleled

The algorithm is designed to be objective and cannot be influenced by external factors, ensuring a secure, stable environment for gaming.

For operators

1. Stable cash flow

Virtual sports are available 24/7, meaning there’s always an opportunity for players to place a bet. This ensures a steady flow of funds to the casino.

2. Audience growth

There’s no limit to the amount of new content you can add, meaning there’s no limit to your player base.

3. Simplicity and accessibility

Sports betting is incredibly user-friendly, and the process is further facilitated by advanced graphics and a growing selection of sporting events.

How did virtual sports betting become popular?

Before 2020, virtual sports were widely considered a niche gambling discipline — a bridge between online casinos and sportsbooks that appealed to a very limited audience.

But when the COVID-19 pandemic effectively shut down the live sports industry, millions of punters around the globe were left with nothing to bet on.

Not only did companies have to deal with the financial fallout of canceled games and interrupted seasons, but they also had to be ready for the possibility of similar circumstances happening again — and uncertainty is bad for business.

So sportsbooks all over the world shifted to virtual sports to offset their losses. In Sweden, regulators allowed sportsbooks to offer virtual sports betting under their current license to help them survive the crisis. In the USA, prominent horse and greyhound racing enterprises like Hawthorne Race Course and Palm Beach Kennel Club started partnering up with virtual sports betting software providers.

In the UK, the Virtual Grand National was shown on national TV in place of a real race. Inspired, the company that provides the product has reported a surge of revenue in virtual sports.

Some companies were ahead of the curve. In 2019, Betradar launched a virtual Asian Cup, which proved very popular in the region. By the time the crisis hit, they already had a strong offering of virtual football, basketball, tennis, and cricket.

The future of virtual sports

The pandemic era saw a sharp increase in online activities, with virtual sports benefiting immensely. Physical sports events were canceled or postponed globally, leading fans to seek alternatives.

But is there a future for virtual sports in the post-pandemic world?

The rise of digital platforms and the increasing prevalence of online entertainment have profoundly influenced consumer behaviors. Today's audiences, especially younger demographics, are accustomed to consuming content on digital platforms and engaging with interactive experiences. Virtual sports cater to these evolving consumption patterns by offering convenient access to sports entertainment anytime, anywhere.

One of the primary drivers of the growth in virtual sports is technological advancement. From sophisticated AI algorithms to immersive virtual reality in sports, technology continues to push the boundaries of what is possible. These advancements not only enhance the visual and interactive aspects of virtual sports but also play a crucial role in improving gameplay mechanics and overall user experience. Realistic simulations, lifelike player animations, and dynamic environments contribute to creating a more immersive and engaging virtual sports experience.

The global market for virtual sports is expected to continue growing. According to market research, the sector’s expansion will be driven by technological innovation and increasing internet penetration. As more people gain access to sophisticated devices and faster internet connections, the accessibility of virtual sports is likely to increase, reinforcing its popularity.

Furthermore, the integration of social features, where players can form communities, share achievements, and compete with each other, also contributes to a broader appeal.

Conclusion

Virtual sports offer a great alternative to traditional betting. With events taking place every few minutes and available 24/7, there's no need to wait for a specific time or place to participate. As technology advances, the virtual sports industry is set for ongoing expansion. Both operators and investors in this field stand to profit greatly, given the industry's anticipated growth and development.

The betting market is a profitable one, but navigating the changing currents of the online gambling business requires patience and experience. Slotegrator works with providers, sportsbook operators, lawyers, and industry experts to anticipate market changes. If you’re unsure how to get started on your new business venture or need expert help to revitalize your existing operation, contact us for a free consultation.