Online Sports Betting Market Size, Share, Trends, Growth 2032

Online Sports Betting Industry Prospective:

The global online sports betting market size was worth around USD 54.56 billion in 2023 and is predicted to grow to around USD 142.56 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.5% between 2024 and 2032.       

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Online Sports Betting Market: Overview

Online Sports Betting is a platform to place bets on various sports events through the internet. This has become increasingly popular owing to benefits offered such as convenience, offering individuals to engage in sports betting from the comfort of their own homes or on the go using mobile devices.

The online sports betting industry is primarily driven by several factors including the rising adoption of smartphones, increasing internet penetration, the growing interest of individuals in various sports including cricket, football and others, legalization of betting, technological advancements and the emergence of new market participants in this area.

Key Insights

• As per the analysis shared by our research analyst, the global online sports betting market is estimated to grow annually at a CAGR of around 10.5% over the forecast period (2024-2032).
• In terms of revenue, the global online sports betting market size was valued at around USD 54.56 billion in 2023 and is projected to reach USD 142.56 billion, by 2032.
• The growing adoption of smartphones across the globe is expected to drive the online sports betting market during the forecast period.
• Based on the sports, the football segment is expected to hold the largest market share during the forecast period.
• Based on the device, the mobile segment is expected to grow at the highest CAGR during the forecast period.
• Based on region, Europe is expected to dominate the market over the projected period.

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Online Sports Betting Market: Growth Drivers

Growing adoption of smartphones along with penetration in internet infrastructure drives market growth

Online sports betting is primarily driven by the growing adoption of smartphones along with penetration in internet infrastructure. This will enhance the user experience and offer on-the-go betting platforms. For instance, according to secondary sources, Globally, smartphones account for about 90% of all cellular phones. The bulk of the world's population already possesses one. Over 6.5 billion cellphones are already in use throughout the world, with that figure expected to rise in the coming years.

Similarly, as per the data published by 5G Americas, global 5G connections already total 1.2 billion, with an estimated increase to 1.9 billion by the end of 2023 and 6.8 billion by the end of 2027. Thus, the aforementioned statistics support the market penetration.

Online Sports Betting Market: Restraints

Scandals and illegal practices impeding the market growth

The recent legalization in the United States has prompted an emphasis on combating corruption. Match-fixing incidents have emerged, prompting attempts to detect and prevent misconduct. Sportradar's Universal Fraud Detection System (UFDS) monitors sports integrity, with football being the most vulnerable. The illicit gaming business also presents a threat to the worldwide industry.

Security and trust difficulties online, including a lack of dispute resolution systems, transparency, and responsible gaming norms, impede industry expansion. Cybersecurity vulnerabilities in online platforms are also a source of concern, making security and reputation critical to the survival of the online market.

Online Sports Betting Market: Opportunities

Technological advancement provides an attractive opportunity for market expansion

The industry is expected to grow due to increased customer demand brought on by advances in technology. Key industry participants are investing heavily in machine learning techniques, which are producing promising predicted outcomes. The esports sector has grown in popularity alongside traditional sports such as baseball, especially during the pandemic. This spike had a tremendous impact on the sports gambling and betting business. Online betting providers saw a rise in betting income as a result of efficient marketing initiatives. Sports wagering, which includes a variety of formats such as spread betting, helped to drive industry expansion.

Machine learning makes it easier to create reliable prediction models, which improve betting efficiency by evaluating real-time data from a variety of sources such as player performance, weather, and fan mood. This trend is projected to continue, with automated tools dominating the industry, fueled by cutting-edge technology and large data quantities. The market's evolution emphasizes the significance of users implementing successful tactics and relying on correct forecasts, with machine learning algorithms playing a critical part in increasing efficiency for sports betting.

Online Sports Betting Market: Challenges

Regulatory restrictions and integrity issues pose a major challenge to market expansion

Many governments have legal limits or bans on internet gambling, including sports betting. Regulatory uncertainty may hinder market expansion and create hurdles for operators. Moreover, concerns about match-fixing and the integrity of sporting events can harm the reputation of the online sports betting sector. Operators frequently invest in steps to ensure fair play and the integrity of their betting systems. Thus, this is expected to pose a major challenge for the online sports betting market.

Online Sports Betting Market: Segmentation

The global online sports betting industry is segmented based on type, sports, device and region.

Based on the type, the global online sports betting market is bifurcated into e-sports, fixed old betting, line-in-play, exchange betting, daily fantasy, pari-mutuel, spread betting and others.

Based on sports, the global online sports betting industry is categorized into basketball, football, hockey, baseball, cricket, boxing, tennis, horse riding, golf, auto racing and others. The football segment is expected to hold the largest market share during the forecast period due to the growing number of bets. It is notably common in European nations with a strong football culture, such as Italy, France and Spain. The online betting segment is mostly used in sports, particularly football tournaments such as the FIFA World Cup and European Championships. Furthermore, as smartphone usage grows, so does the popularity of mobile application-based lottery games. The ease and comfort of gambling at one's own home is one of the segment's key drivers. Casino gaming has been one of the fastest-growing gambling genres, because of its ease of use and excellent user experience. Furthermore, the growing use of internet payment gateways has made payment alternatives easier for gamers. Online payment offers a safe and secure means of transaction, which promotes the expansion of the online sports betting sector.

Based on devices, the global online sports betting market is categorized into mobile, desktop and others. The mobile segment is expected to grow at the highest CAGR during the forecast period. Many online sportsbooks provide specialized mobile applications that provide a smooth and user-friendly experience. These applications frequently provide a variety of features, including as live betting, safe payment choices, and tailored alerts.

Online Sports Betting Market: Report Scope

Regional Analysis

Europe is expected to dominate the market over the projected period

Europe is expected to dominate the market over the projected period. The market has considerable demand from European betting customers who wager across several leagues, pre-match, and in-play. The United Kingdom, Spain, Germany, and other European nations account for a substantial percentage of the market's income since most firms want to create long-term revenue by growing into regulated markets. The online sports betting business in Europe has risen dramatically in recent years, owing to its widespread use in events such as the FIFA World Cup, Wimbledon Championship, and European Championships. Companies are extending their presence in the region for a variety of reasons, including product offers, user experience, brand equity, targeted payoffs, and access to many platforms.

For instance, in September 2023, Betsson, a multinational gaming operator, entered the French online betting sector. Betsson's entry into the French market comes from a collaboration with a local partner. Its strategic goal is to get the firm closer to the French sports betting market. In the fourth quarter of 2023, Betsson's flagship brand was officially launched. Thus, driving the online sports betting market in the Europe region.

Online Sports Betting Market: Competitive Analysis

The global online sports betting market is dominated by players like:

• William Hill
• Flutter Entertainment
• Bet365
• GVC Holdings
• Kindred Group
• DraftKings
• Betsson AB
• 888 Holdings
• Pinnacle
• Betway
• BetAmerica
• BetVictor
• Betfred
• Bet-at-home.com
• BetWinner
• Sports Interaction
• SBOBET

The global online sports betting market is segmented as follows:

By Type

• E-Sports
• Fixed Old Betting
• Line-in-play
• Exchange Betting
• Daily Fantasy
• Pari-Mutuel
• Spread Betting
• Others

By Sports

• Basketball
• Football
• Hockey
• Baseball
• Cricket
• Boxing
• Tennis
• Horse Riding
• Golf
• Auto Racing
• Others

By Device

• Mobile
• Desktop
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa