Online Sports Betting Growth Set to Slow by 2029
Betideas predicts the online sports betting market, which has seen unprecedented growth over the past decade, is expected to face a significant slowdown by 2029. Factors such as market saturation, tighter regulations, and rising competition are contributing to a decline in annual growth rates.
Market Transformation and Growth
Since 2017, online sports betting has experienced explosive expansion, adding nearly 100 million users and quadrupling its revenue. Innovative technologies such as mobile betting, in-play wagering, and AI-powered predictions, combined with the widespread legalization of online gambling, have fueled this boom. Currently, 86% of sports wagers are placed online, solidifying the segment as the leading choice for sports enthusiasts.
Betideas.com projects the annual growth rate of the online sports betting industry to decrease threefold by 2029, with rates falling to 4.4% from double-digit growth seen in previous years.
Factors Behind the Slowdown
The slowdown is primarily attributed to market saturation in mature regions, stricter compliance regulations, and heightened competition. As markets reach their peak user bases, operators face shrinking profit margins and rising entry barriers. These challenges are particularly difficult for smaller and newer companies.
Stricter advertising rules have further curtailed growth opportunities, especially in highly regulated markets such as the United States and the United Kingdom. The US, for instance, is expected to see its growth rate decline from 20.5% in 2024 to just 4.1% by 2029, while the UK’s growth will drop from 8.3% to 3.5% during the same period.
Australia, the third-largest online sports betting market, is a notable exception, with a modest recovery projected. Its growth rate is expected to improve from a decline of 1.9% this year to a positive 1.9% by 2029.
Revenue Projections
Despite the challenges, the global revenue of online sports betting continues to climb, albeit at a slower rate. Statista Market Insights estimates that the sector’s revenue will grow by 16% this year to reach $45.1 billion and surpass $50 billion by 2025. However, the annual growth rate is predicted to drop steadily, hitting 4.4% by 2029—just a third of this year’s rate.
While revenue growth is slowing, the number of online sports bettors continues to increase. In 2023, the global user base reached 123 million, an 18 million increase from the previous year. By 2029, this figure is expected to exceed 181 million, adding nearly 45 million new users in five years.
