From a niche market into a global powerhouse, innovative technologies, as well as widespread legalization have transformed online sports betting. The segment has added almost 100 million users and quadrupled its revenue since 2017. Mobile betting, in-play wagering, AI-powered predictions, and digital sportsbooks have all driven this unprecedented growth. Online platforms now handle 86% of all sports wagers. This cements the segment as the top choice for sports fans. Nonetheless, the era of double-digit growth is ending.
The Betideas.com states that the yearly growth rate in online sports betting market is projected to plunge threefold, falling to just 4.4% by 2029. This marks a notable slowdown compared to the rapid growth seen over the past ten years.
A lot of factors are driving the online sports betting industry slowdown. Market saturation is a main issue. This is due to mature markets having reached their peak user bases. Moreover, stricter advertising rules, tighter compliance regulations, as well as rising competition are limiting growth opportunities. Smaller, as well as newer players are specifically vulnerable as profit margins shrink and entry barriers rise. This trend is also global.
The Statista Market Insights survey shows that revenues in the online sports betting sector are expected to grow by 16% in 2024. This reaches $45.1 billion and another 12.2% in the following year surpassing $50 billion. Nevertheless, yearly growth rates will decline steadily afterward, reaching just 4.4% by 2029. This is only a third of 2024’s rate and six times lower than the peak in 2022.
In major markets such as the United States and the United Kingdom, the slowdown is especially evident. As per statistics, the US growth rate will drop from 20.5% this year to just 4.1% by 2029. On the other hand, the growth of UK will decline from 8.3% to 3.5% in this period. The third-largest online sports betting market, Australia, is the only exception with a projected 1.9% growth in 2029. This represents a modest recovery from 2024’s decline of 1.9%.
