What is betting on Virtual Sports/ What is a virtual sports bet and how does it work?

Betting on virtual sports, or as we like to call them “Virtuals” is a form of sports betting. The main difference between “normal” sports betting and betting on virtual events is that the outcome is generated by a so-called Random Number Generator (RNG). It is basically a computer-simulated bet. The computer generates a bet that is free from manipulation and thus 100% random. The advantage of Virtuals is that the cycles are very fast. A round takes a few minutes to be lost or won. Most popular games of Virtuals are Dog Racing/Greyhound Racing, Horse Racing and Football. National preferences, or niche markets exist as well, such as Baseball in Latin America or Cricket in India.

History of Virtual Sports Betting

Betting on virtual sports presumably emerged in the early 2000s, as a consequence of the outbreak of the foot and mouth disease in the UK. The main purpose of their deployment was to fill the void between the live events, in order to have a betting offer ready every minute. Originally, greyhound and horse racing were the most popular products. Nowadays, virtual sports have become extremely popular and count as an independent unit in the betting segment (vertical). Several companies have specialized in this sector and offer a wide range of sport disciplines. In recent years, the segment has registered an increase in the share of the online activities, as is the case in the entire betting/gambling sector. The outbreak of the Corona virus in 2020 has intensified this phenomenon.

Legal background / Is betting on Virtual events legal?

There is no unified legal framework for the operation of Virtual games. In some countries there is a distinction between Sports Betting and Virtual Betting, whereas others consider Virtuals as part of sports betting. Others however, are silent about Virtuals. Threfore, there is no clear global legal definition of Virtuals. Secondly, every jurisdiction has its own regulations. In some countries the usage of virtual sports betting is restricted to a licensing model for operators and suppliers alike. Other countries prohibit all forms of gambling completely, whereas others do not regulate gambling at all. Before entering a market, it is therefore indispensable to verify the status of gambling in general, and the status of Virtuals, in particular.

How to get virtual sports in your betting shop or online betting site?

There are multiple software providers operating on this market, who have specialized in virtual sports betting. The integration is mostly an easy process which mainly requires a stable internet connection, as the majority of the suppliers work on a server-based solution. This means that all the game mechanisms are produced and saved on the server of the supplier, which are ultimately transmitted to the client via the internet.