Innovative technologies and widespread legalization have transformed online sports betting from a niche market into a global powerhouse. Since 2017, the segment has added nearly 100 million users and quadrupled its revenue. Mobile betting, in-play wagering, AI-powered predictions, and digital sportsbooks have all driven this unprecedented growth. Today, 86% of all sports wagers are placed online, cementing the segment as the top choice for sports fans. However, the era of double-digit growth is ending.
According to data from Betideas.com, the annual growth rate in the online sports betting market is projected to plummet threefold, falling to just 4.4% by 2029. This marks a significant slowdown compared to the robust growth seen over the past decade.
Market Saturation and Regulatory Challenges Take Their Toll
Several factors are driving the online sports betting industry slowdown. Market saturation is a key issue, as most mature markets have reached their peak user bases. Additionally, stricter advertising rules, tighter compliance regulations, and rising competition are limiting growth opportunities. Smaller and newer players are particularly vulnerable as profit margins shrink and entry barriers rise, and this trend is global.
According to Statista Market Insights survey, revenues in the online sports betting sector are expected to grow by 16% this year, reaching $45.1 billion and another 12.2% in 2025, surpassing $50 billion. However, annual growth rates will decline steadily afterward, reaching just 4.4% by 2029 – only a third of this year’s rate and six times lower than the peak in 2022.
The slowdown is particularly evident in major markets like the United States and the United Kingdom. Statistics show the US growth rate will drop from 20.5% in 2024 to just 4.1% by 2029, while the UK’s growth will decline from 8.3% to 3.5% in this period. Australia, the third-largest online sports betting market, is the only exception, with a projected 1.9% growth in 2029, representing a modest recovery from this year`s decline of 1.9%.
Almost 45 million New Users Despite Revenue Challenges
Despite the revenue slowdown, the number of online sports bettors will continue to rise, still at a slower pace. In 2023, 123 million people worldwide used online sports betting platforms, up 18 million from the previous year. This figure is expected to hit 138 million in 2024 and surpass 150 million by the end of 2025. By 2029, Statista projects the total number of online bettors to jump over 181 million, adding nearly 45 million new users over the next five years.
Although user growth offers some optimism, the online sports betting segment faces significant challenges in following years, with operators tackling increasing competition, a maturing market, and tightening regulations to sustain profitability.