Esports and Sports Gambling Market Outlook

The global Esports and Sports Gambling market is projected to reach approximately USD 204.9 billion by 2035, expanding at a compound annual growth rate (CAGR) of around 12.9% from 2025 to 2035. This remarkable growth is driven by a confluence of factors, including the proliferation of high-speed internet connectivity, the rapid growth of the gaming industry, and the increasing popularity of esports as a legitimate form of entertainment. Moreover, the integration of technology in gambling practices, such as mobile applications and live betting platforms, has further fueled market expansion. The ongoing trend of leveraging data analytics and artificial intelligence within gambling operations also enhances user experience and operational efficiency, ensuring the market continues on its upward trajectory. Additionally, the changing landscape of consumer preferences with younger generations gravitating towards interactive and engaging betting options is notably impacting the growth of the esports and sports gambling sector.

Growth Factor of the Market

One of the primary growth factors for the Esports and Sports Gambling market is the increasing acceptance of esports as a mainstream entertainment medium. With major events being hosted worldwide and garnering millions of viewers, traditional betting firms are increasingly adapting their offerings to include esports betting, thus expanding the market. Furthermore, the accessibility of online gambling platforms has made it easier for individuals to place bets conveniently from their homes, contributing to a surge in user engagement. The rise of social media and streaming platforms has also played a critical role in popularizing esports events, attracting younger demographics who are more inclined to participate in betting activities. Regulatory changes in various countries are paving the way for legally sanctioned esports gambling, which is expected to attract more players into this lucrative market. Lastly, technological advancements, such as virtual reality and augmented reality in gaming, may create immersive betting experiences, further transforming the market landscape.

Key Highlights of the Market

• Projected market size to reach USD 204.9 billion by 2035.
• CAGR of about 12.9% anticipated from 2025 to 2035.
• Growing acceptance of esports as a mainstream form of entertainment.
• Significant increase in mobile and online betting platforms.
• Enhanced user experience through advanced technologies like AI and data analytics.

By Product Type

Traditional Sports Betting:

Traditional Sports Betting remains a cornerstone of the gambling industry, representing a substantial portion of the overall market. It encompasses betting on established sports such as football, basketball, horse racing, and more, appealing to a broad demographic. The sector is characterized by a well-defined regulatory framework, often varying by region, and an established customer base. Many traditional betting operators have adapted to the digital landscape by offering online platforms that facilitate easier access for bettors, thus enhancing user engagement. The integration of features like live betting and mobile apps has made Traditional Sports Betting more appealing, especially to younger audiences who value convenience and fast-paced betting experiences. The familiarity of traditional sports among bettors further ensures the ongoing popularity of this segment.

Esports Betting:

Esports Betting is an emerging segment that has witnessed a significant uptick in popularity over recent years. As competitive gaming gains traction, betting on esports tournaments and events has become a normative practice among fans. This type of betting offers unique opportunities as it involves a range of games such as League of Legends, Dota 2, and Counter-Strike: Global Offensive, each having its own ecosystem and audience demographics. The esports betting market is particularly appealing to Generation Z and millennials, who are more engaged with video games than traditional sports. This segment benefits from the interactivity of esports, enabling fans to place bets on various in-game outcomes, enhancing their viewing experience. As the esports industry continues to evolve and expand, the betting opportunities associated with it are projected to grow exponentially.

By Application

Online Gambling:

Online Gambling has revolutionized the gambling landscape, providing unprecedented convenience and accessibility for users. The rapid growth of internet penetration and mobile devices has enabled bettors to place their wagers at any time from virtually anywhere. Online gambling offers a diverse array of betting options, including live betting and casino games, thus enhancing user engagement. Furthermore, the rise of online platforms has led to increased competition among operators, often resulting in attractive promotions, bonuses, and loyalty programs to entice users. As security and payment processing technologies improve, consumer confidence in online gambling continues to rise. This segment is expected to play a pivotal role in driving the growth of the overall Esports and Sports Gambling market, particularly as platforms continue to innovate with user-friendly interfaces and gamification elements.

Offline Gambling:

While online gambling takes the lead in terms of rapid growth, Offline Gambling continues to hold significant appeal for traditional bettors. This segment includes physical sportsbooks and casinos where patrons can enjoy a social atmosphere while placing their bets. The tactile experience of engaging directly with staff and other bettors creates a unique environment that many traditional gamblers still favor. Moreover, major sporting events often see increased foot traffic in local betting establishments, driving short-term spikes in revenue. The offline gambling sector is gradually incorporating technological advancements, such as touch-screen betting kiosks and in-venue betting apps, to modernize the experience. Despite the challenges posed by online platforms, Offline Gambling remains robust, particularly in regions where regulations restrict online betting activities.

By Platform

Desktop:

The Desktop platform remains a vital component of the Esports and Sports Gambling market, particularly among users who prefer comprehensive betting experiences. Desktops allow for larger screens and enhanced functionality, enabling bettors to analyze live data and make informed decisions. Many betting operators design their websites to be user-friendly and informative, catering to those who enjoy a detailed gambling experience. Desktop platforms often provide extensive markets, offering various betting options across multiple sports and esports. Additionally, many users engage in desktop betting during major events, where they seek real-time updates and analytics. Despite the rising trend of mobile betting, the Desktop platform continues to attract dedicated users who appreciate the depth of information and the robust analytical tools available on larger screens.

Mobile:

The Mobile platform has transformed the Esports and Sports Gambling market by providing unparalleled convenience and accessibility. With widespread ownership of smartphones and advancements in mobile technology, bettors can place bets from anywhere at any time. Application development has significantly enhanced the mobile betting experience, allowing operators to offer features like push notifications, live updates, and user-friendly interfaces. Mobile platforms cater to the needs of a younger demographic, who prefer quick and easy access to betting options without the need for a desktop computer. The efficiency of mobile betting apps has led to a marked increase in user engagement, with many operators reporting higher betting volumes on mobile devices compared to traditional channels. As mobile technology continues to evolve, it is expected to remain a dominant force within the Esports and Sports Gambling market.

By Mode of Betting

Pre-match Betting:

Pre-match Betting is a traditional form of wagering that allows bettors to place their bets before the commencement of a sporting event. This mode offers bettors the opportunity to analyze teams, players, statistics, and other pertinent information, providing a more strategic betting approach. Pre-match betting is particularly popular among seasoned bettors who prefer to study the odds and place informed bets based on thorough research. Many betting platforms provide comprehensive data and insights, enhancing the pre-match experience. This mode often covers various betting markets, including match outcomes, point spreads, and prop bets, attracting a diverse array of bettors. Despite the rise of live betting, pre-match betting remains a crucial segment, providing a stable revenue stream for operators and a preferred option for many traditional bettors.

Live Betting:

Live Betting has revolutionized the betting landscape, providing an interactive and dynamic wagering experience. As the name suggests, this mode allows bettors to place bets during the event, with odds continuously adjusting based on real-time developments. The thrill of live betting is particularly appealing to esports and sports fans, as they can capitalize on in-game events and shifting dynamics. This mode encourages engagement and enhances the viewing experience, as bettors can react instantly to game scenarios. Many online platforms have developed sophisticated algorithms to optimize live betting options, offering a variety of markets and bet types throughout the event. The growth of live betting demonstrates a shift in consumer preferences toward more engaging and participatory forms of gambling, solidifying its position as a significant segment within the Esports and Sports Gambling market.

By Region

North America currently leads the global Esports and Sports Gambling market, with a valuation of approximately USD 52.7 billion in 2025, anticipated to grow at a CAGR of 11.7% over the forecast period. The region benefits from a well-established gambling infrastructure and a large population of sports enthusiasts who are inclined to place bets on both traditional sports and emerging esports. The legalization of sports betting in several states has further accelerated market growth, creating favorable conditions for operators and increasing consumer participation. The proliferation of online gambling platforms has also contributed to the region's robust growth, providing easy access to a diverse range of betting options and enhancing user engagement across various demographics.

Europe follows closely, with a market valuation expected to reach around USD 49.5 billion by 2025, driven by cultural affinity for sports and a favorable regulatory environment for gambling activities. The region has witnessed substantial investments in both esports and traditional sports betting, creating competitive landscapes among operators. Countries such as the UK, Germany, and Sweden lead in terms of market activity, buoyed by their advanced online gambling ecosystems. Additionally, the youth demographic in Europe shows a growing interest in esports events, thus expanding the market potential. The combination of technological advancements and consumer engagement initiatives will continue to fuel growth in the European Esports and Sports Gambling sector.

Opportunities

The Esports and Sports Gambling market is poised for substantial growth, presenting numerous opportunities for stakeholders. One significant opportunity lies in the increasing acceptance and legalization of esports gambling across various jurisdictions. As more countries recognize the potential revenue benefits associated with regulated esports betting, operators can expand their market presence and attract a broader customer base. Additionally, innovative technological advancements such as blockchain and cryptocurrency payments are gaining traction in the gambling sector, providing enhanced security and transparency for transactions. These technologies not only improve user experience but also attract a new demographic of tech-savvy bettors who seek modern and efficient betting solutions. Furthermore, the integration of virtual reality and augmented reality in betting platforms creates immersive experiences that can attract new users and deepen engagement among existing bettors.

Another promising opportunity for the Esports and Sports Gambling market lies in the development of tailored marketing strategies targeting younger audiences. As esports continues to gain traction among millennials and Generation Z, operators must create engaging content and promotional campaigns that resonate with these demographics. Leveraging social media platforms and influencer partnerships can effectively enhance brand visibility and attract new customers. Furthermore, cross-promotional activities between esports tournaments and gambling platforms can drive traffic and encourage participation. The potential for collaboration between game developers and betting operators also presents an exciting opportunity for innovation, creating a more integrated and enjoyable experience for users while driving growth in the Esports and Sports Gambling market.

Threats

Despite the promising outlook for the Esports and Sports Gambling market, various threats could pose challenges to its growth. One of the primary concerns is the risk of regulatory changes that could impact the legality and operation of online betting platforms. Many regions are still navigating the complexities of gambling laws, and sudden alterations in regulations can create instability within the market. Additionally, concerns regarding responsible gambling practices and the potential for gambling addiction can lead to increased scrutiny from governments and regulatory bodies. Operators must ensure that they implement effective measures to promote responsible gambling, or they risk facing stringent penalties or loss of licensing. There is also the threat of data breaches and cyberattacks, which pose significant risks to user security and trust in online platforms. In an increasingly digital landscape, operators must invest in robust cybersecurity measures to protect their customers' personal and financial information.

Another threat to the Esports and Sports Gambling market is the potential for market saturation as more players enter the industry. The influx of new operators may lead to fierce competition, driving down profit margins and making it challenging for smaller firms to survive. As established betting platforms continue to expand their offerings, new entrants may struggle to differentiate themselves and capture market share. Furthermore, the rapid evolution of technology necessitates continuous investment in innovation, which can be a daunting challenge for smaller operators with limited resources. The industry must remain vigilant and adapt to changing consumer preferences and technological advancements to maintain its competitive edge and avoid stagnation.

Competitor Outlook

• Bet365
• Pinnacle Sports
• William Hill
• Betfair
• DraftKings
• FanDuel
• 888 Holdings
• Unikrn
• Rivalry Corp.
• Betway
• Sportium
• LeoVegas
• Betsson
• Parimatch
• Gambling.com Group Limited

The competitive landscape of the Esports and Sports Gambling market is characterized by a dynamic and rapidly evolving environment, driven by technological advancements and changing consumer preferences. Major operators such as Bet365 and DraftKings lead the market, offering diverse betting options and user-friendly platforms. These companies have invested heavily in marketing and technology, ensuring they remain at the forefront of consumer engagement. Additionally, established brands like William Hill and Betfair continue to adapt their offerings to include new betting trends, particularly in esports, enabling them to capitalize on the growing market. The competition is further intensified by the rise of niche platforms that specialize in esports betting, catering specifically to the younger demographic and capturing a segment of the market that traditional betting operators may overlook.

Another notable player, Pinnacle Sports, has carved out a reputation for providing competitive odds and a no-frills approach to betting, appealing to serious bettors who seek value. Meanwhile, companies like Unikrn have emerged as dedicated esports betting platforms, offering innovative features such as live streaming and in-depth statistics to enhance the betting experience. The presence of these specialized operators adds depth to the market, driving innovation and encouraging established firms to enhance their offerings. As more players enter the market, competitive differentiation through unique user experiences, customer service, and innovative technologies will be crucial for sustaining growth in the Esports and Sports Gambling sector.

Some key companies like FanDuel and 888 Holdings are also noteworthy for their efforts in promoting responsible gambling practices and ensuring regulatory compliance across different regions. This focus not only enhances their reputations but also aligns with broader industry trends aimed at fostering a sustainable betting environment. As the market matures, collaboration between established operators and emerging platforms will likely become increasingly common, offering consumers a wide range of betting options while ensuring a competitive landscape. The future growth of the Esports and Sports Gambling market will undoubtedly depend on the ability of these companies to innovate, adapt, and respond to evolving consumer demands.