ONLINE SPORTS BETTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Online Sports Betting Market Size and Forecast – 2024 - 2031

Global Online Sports Betting Market is estimated to be valued at USD 50.13 Bn in 2024 and is expected to reach USD 89.28 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031.

Key Takeaways from Online Sports Betting Market Report:

• Football is a popular game and is expected to witness 61.2% in 2024.
• Mobile betting is expected to account for 56.8% market share in 2024.
• North America is a dominant market with an anticipated share of 38.1% in 2024.

Market Overview:

Increased digitization and rising internet penetration along with growing popularity of various sports leagues across the world have been the major factors driving the market. Factors such as legalization of sports betting in various regions, post-pandemic gaming trends indicating more people exploring online options for sports entertainment will continue to support positive market growth in the forthcoming years. Further, emerging technologies like virtual and augmented reality is opening new avenues for industry participants to capture greater market share in the online sports betting space.

Segmental Insights

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Sports Type, Football Contributes the Highest Market Share Owing to Widespread Popularity and Engagement

By Sports Type, Football is a popular game and is expected to witness 61.2% in 2024 owing to the most followed and engaged sport globally. The heavy fan following of domestic as well as international leagues and tournaments has translated well into online betting interest. With major football leagues and international fixtures taking place throughout the year, there is ample opportunity for betting action on a regular basis. The high scoring and unpredictable nature of individual matches also fuels excitement among bettors. Advancements in streaming and live sports viewing on digital platforms have further brought the action and betting opportunities closer to fans.

End-User Insights, High Prevalence of Smartphones and On-The-Go Convenience

By end-user, mobile betting is expected to register a remarkable growth in the forecast period and expected to account for  56.8% in 2024. The past decade has seen a massive proliferation of affordable smartphones across demographics and geographies. This has enabled mobile to emerge as the dominant channel for online activities including sports betting. Being always connected via mobile devices has given bettors the ease and flexibility to place stakes on the move from anywhere. Advancements in responsive website design and dedicated native apps have optimized the betting experience for small screens.

Regional Insights

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North America Online Sports Betting Market Trends

North America is a dominant market with an anticipated share of 38.1% in 2024. The dominance in the online sports betting market can be attributed to factors such as the presence of well-established sports leagues, progressive legislation towards online gambling, and high smartphone and internet penetration. Countries such as the United States have relaxed laws regarding sports betting in recent years, fueling growth. Major players in the region like DraftKings and FanDuel have benefited from these regulatory changes, consolidating their positions through strategic partnerships with professional sports teams and media companies.

Asia Pacific Online Sports Betting Market Trends

The Asia Pacific region is expected to exhibit the fastest growth in 2024 and is expected to account for 33.4% market share in 2024. The industry growth prospects is driven by a young population with rising disposable incomes and increasing rates of smartphone ownership. Countries like India have large cricket fan bases while China is looking to further open up its sports sector to foreign investors and competitions. Local betting platforms are tapping into these opportunities through vernacular content and payment solutions. Regional unicorns like Malaysia-based Powerball are raising funds to expand across Southeast Asian markets.

Online Sports Betting Market Outlook for Key Countries

United States Online Sports Betting Market Trends

The growing legalization and acceptance of online sports betting across various US states is significantly impacting trends in the United States online sports betting market. As more jurisdictions regulate and permit sports wagering via online and mobile platforms, it is driving increased consumer participation in this activity. Many new and casual sports bettors are attracted to the convenience and accessibility of placing wagers from internet-connected devices like smartphones, laptops and tablets rather than having to visit physical sportsbooks. This expansion of the potential customer base is enticing more sports betting and gambling companies to enter the US market and invest in strong digital products. Leading brands are investing heavily in their mobile and website offerings, with many releasing newly designed sports betting apps and features to provide enhanced user experiences.

United Kingdom Online Sports Betting Market

The growth of mobile technology and increasing internet penetration have significantly impacted the United Kingdom Online Sports Betting Market Trends 2024. With more people having smartphones and better access to internet on mobile devices, sport betting activity online has surged in recent years. This has allowed betting firms to build dedicated mobile apps that make it very convenient for users to place bets on the go using their phones. The apps have user-friendly interfaces and allow activities like live in-play betting which has become very popular.

India Online Sports Betting Market

The emerging trend of online sports betting has significantly influenced the way sports betting industry is shaping up in India. With rising internet and smartphone penetration in the country, many people are opting for digital platforms for sports betting over traditional brick-and-mortar options. This trend can be attributed to the various advantages offered by online betting sites like round-the-clock betting access, numerous betting options on a single platform, live streaming of games, cash-out options, quick payouts and bonuses & rewards.

China Online Sports Betting Market

The rising trend of online sports betting in China is having a significant impact on the overall sports betting market in the country. With the increasing internet and smartphone penetration in China, more people are opting to place sports bets online rather than visiting physical betting outlets. This trend towards online betting provides users with a convenient and accessible way to bet from anywhere, without having to visit betting shops. As a result, many traditional betting agencies are now investing heavily in developing robust online platforms and mobile apps to capitalize on this shifting preference.

Brazil Online Sports Betting Market

The online sports betting market in Brazil has seen significant growth in recent years driven by rising internet and smartphone penetration along with changing cultural attitudes towards gambling. With more people now having access to digital platforms and adapting to new online activities, betting on sports from anywhere has become quite popular. This has encouraged many local operators to enter the fledgling online betting space and offer innovative new products to engage users beyond traditional brick-and-mortar betting shops.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In November 2024, New Jersey's internet gambling market reached a new high, generating over USD 214 million in November. This marginally surpassed the previous record of USD 213 million, highlighting the sustained growth and significance of online gambling, including sports betting, in the state's gaming revenue.
• In September 2024, Betsson secured a license to offer online sports betting in France. Operations commenced in collaboration with a local partner, with the launch under the Betsson brand occurring in the fourth quarter of 2024. This expansion reflects Betsson's strategy to penetrate new European markets.
• In January 2024, Flutter Entertainment, originally known as Paddy Power, marked a significant milestone by listing on the New York Stock Exchange. This move underscores Flutter's strategic focus on the expanding U.S. online gambling market, particularly through its subsidiary FanDuel, which holds a substantial share of U.S. sports betting revenue.

Top Strategies Followed by Online Sports Betting Market Players

• Established Players: Established players focus extensively on research and development to introduce innovative products. Industry leaders like DraftKings and FanDuel invest heavily in R&D to enhance their betting platforms through features like predictive analytics, live streaming of matches, and cash-out options. They also form strategic alliances to broaden their global reach and penetration. For example, DraftKings partners with major sports leagues and organizations to expand into international territories.
• Mid-Level Players: Mid-level players look at providing cost-effective solutions. Companies such as Bet365 target price-sensitive customers with affordable yet high-quality offerings. They optimize internal efficiencies to minimize operating costs. Such players may also collaborate with niche startups to co-develop specialized products catering to undiscovered segments.
• Small Players: Small businesses focus on niche specialization and technology adoption. New entrants concentrate on specific sports, leagues, or audiences underserved by larger competitors. They make use of technologies like blockchain, AI, and augmented reality to deliver customized experiences and stay competitive. Local alliances with vendors and regional sports teams help gain initial traction in target markets.

Emerging Startups- Online Sports Betting Industry Ecosystem

• Innovative Technologies: Innovative startups are developing advanced technologies to disrupt the industry. Companies like Sportradar and Synergy Sports use AI and big data to modernize betting operations through statistical modeling and real-time risk assessment. Their solutions could enable more accurate odds calculation, personalized betting recommendations, and faster cashouts.
• Sustainable Solutions: Sustainable startups address growing environmental concerns. Some focus on recycled materials and eco-friendly packaging for merchandise. Platforms like FANabet offer carbon-neutral betting while encouraging tree plantation campaigns. They help lower the industry's carbon footprint and appeal to socially conscious consumers.
• Niche Specialization: Startups also fill various market niches. Newer platforms specialize in niche sports, women audiences, or fantasy sports leagues for unique fan bases. Collaborations with sports teams and tech providers support co-creation of specialized fan engagement products and services. This drives innovation and competence.

Market Report Scope

Market Dynamics

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Online Sports Betting Market Driver - Live in-play betting

Live in-play betting is a key driver in the online sports betting market, offering real-time wagering during events. Its dynamic nature enhances user engagement with continuously updated odds, encouraging multiple bets within a single game. Seamlessly integrated with mobile platforms, it appeals to tech-savvy and younger audiences seeking fast-paced, interactive experiences. Features like live cash-out options and instant betting elevate user satisfaction and time spent on platforms. The use of advanced algorithms and real-time data feeds ensures accuracy, enriching the betting experience. Additionally, in-play betting supports market expansion by catering to localized sports and esports, driving global adoption. While regulatory challenges and gambling concerns exist, its ability to boost engagement and revenue underscores its significance in the market growth.

Online Sports Betting Market Challenge - Stringent regulations

The online sports betting market faces stringent regulations as gambling is a sensitive topic in many regions. Many countries have strict laws that either outrightly ban online gambling or impose heavy taxes and regulatory compliance requirements. This makes market entry difficult and limits the addressable customer base for operators. The regulatory landscape varies vastly across markets and is often unpredictable. Operators have to continually monitor changing rules and ensure they adhere to the local laws. Non-compliance can lead to heavy penalties or even bans. Additionally, gaining approvals and licenses is a lengthy and expensive process. The need to navigate complex regulation inflates operating costs and acts as a deterrent for new operators looking to expand into this space. Overall, stringent regulations across global markets pose a significant challenge to the growth of the online sports betting industry.

Online Sports Betting Market Opportunity: Cashless Payments Available for Market

The growth of cashless payments has opened new opportunities for the online sports betting market. Traditional payment methods like credit cards, net banking and e-wallets have become mainstream choices even for smaller value transactions. Players can now deposit and withdraw cashless funds easily from their smartphones. This improves convenience and encourages greater participation. The availability of instant, traceable cashless options also address regulatory concerns around money laundering. As cashless payments continue to penetrate worldwide, especially in developing economies, it directly boosts accessibility of online gambling platforms. More players can access a wider network of betting sites without geographic restrictions. Going cashless also improves bet settlement times and allows micro-transactions. Overall, the proliferation of cashless modes has increased liquidity in the market and expanded the potential customer universe for online sports betting operators.

Analyst Opinion (Expert Opinion)

• The online sports betting market is experiencing significant growth across various regions worldwide. one of the key drivers of this growth is the increasing adoption of mobile and online platforms for sports-related entertainment. More people, especially younger demographics, are preferring to place bets online rather than visiting physical betting shops. The easy accessibility and convenience of online sports betting are appealing to many new customers.
• While growth is expected to continue, tighter regulations could pose a challenge in some markets. With concerns around gambling addiction, especially among youth, some jurisdictions may impose stricter age verification or limiting online promotions. However, legalizing sports betting in new markets also opens up new opportunities. The fast-growing popularity of esports and growth in mobile betting apps are helping to unlock opportunities.
• The North American region has emerged as one of the most exciting opportunities, driven mainly by recent developments in the United States. With individual states beginning to legalize sports betting after a 2018 Supreme Court ruling, the U.S. gaming industry is surging. This is bringing huge growth potential as more traditional sports leagues also actively partner with betting companies. The easing of regulations in Latin America and Asia-Pacific also bodes well for further expansion across emerging markets.

Market Segmentation

• By Sports Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Football
  • Basketball
  • Horse Racing
  • Others
• By End-user Insights (Revenue, USD Bn, 2019 - 2031)
• • Desktop
  • Mobile
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • 888 holdings PLC
  • Entain PLC
  • BET 365
  • Betsson AB
  • Flutter Entertainment PLC
  • Draftkings Inc.
  • Kindred Group PLC
  • 1XBET
  • 22BET
  • Sportpesa