As per the current market research conducted by CMI Team, the North America Online Sports Betting Market size is expected to record a CAGR of 12.4% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 7.18 Billion. By 2032, the valuation is anticipated to reach USD 20.61 Billion.
North America Online Sports Betting Market: Growth Factors and Dynamics
- Legalization and Regulation: One of the key factors driving the growth of the North America online sports betting market is the increasing legalization and regulation of sports betting in various states and jurisdictions. As more states in the United States and provinces in Canada legalize online sports betting, it opens up new markets and opportunities for operators to offer their services legally. This trend is fueled by the potential tax revenues for governments and the desire to bring a previously underground activity into a regulated and controlled environment.
- Technological Advancements: The advancement of technology, particularly in the online and mobile space, has played a significant role in the growth of the sports betting market. The availability of high-speed internet, the widespread use of smartphones, and the development of user-friendly betting apps have made it easier for individuals to engage in online sports betting. This convenience factor has contributed to the overall expansion of the market.
- Partnerships and Market Entry Strategies: Strategic partnerships between online sports betting operators and established entities such as sports leagues, teams, and casinos have been crucial in expanding market reach. Partnerships provide operators with brand visibility, access to a larger customer base, and the ability to offer a diverse range of betting options. Additionally, international operators entering the North American market through collaborations or acquisitions contribute to the overall competitiveness and growth of the market.
- Changing Consumer Behavior: There has been a shift in consumer behavior towards online and mobile platforms for sports betting. The convenience of placing bets from the comfort of one’s home or on the go has led to a surge in online sports betting activities. The changing demographics of sports bettors, including a younger and tech-savvy audience, also play a role in the increasing popularity of online platforms.
- Innovative Betting Options and Features: Online sports betting operators are continually introducing innovative features and betting options to attract and retain customers. This includes live betting, in-play wagering, virtual sports, and various promotions and bonuses. The dynamic and interactive nature of online platforms enhances the overall betting experience, keeping users engaged and encouraging continued participation.
- Market Competitiveness and Mergers/Acquisitions: The North America online sports betting market is highly competitive, with multiple operators vying for market share. This competitive landscape has led to mergers, acquisitions, and partnerships among companies seeking to strengthen their positions. The consolidation of resources and expertise allows operators to offer a more comprehensive and competitive product, driving further growth in the market.
North America Online Sports Betting Market: Partnership and Acquisitions
- In 2023, BetRivers is the first to launch EveryMatrix games in Michigan, aiming for increased competitiveness. With promotions like a no deposit bonus and a substantial gaming portfolio featuring 1,288 slots, it now holds the third-largest slots inventory in the state, enhancing its appeal to online casino enthusiasts in Michigan.
- In 2022, PointsBet, a prominent live betting sportsbook, has partnered with IMG ARENA for a two-year streaming collaboration. This venture enables PointsBet to provide bettors with on-demand streaming access to over 40,000 premium games and matches. IMG ARENA, known for its sports data and technology services, enhances the sports, sports betting, and sports media ecosystems through this strategic partnership.
Report Scope
| Feature of the Report | Details |
| Market Size in 2023 | USD 7.18 Billion |
| Projected Market Size in 2032 | USD 20.61 Billion |
| Market Size in 2022 | USD 6.57 Billion |
| CAGR Growth Rate | 12.4% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Type, Sports Type, Leagues and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
North America Online Sports Betting Market: COVID-19 Analysis
The COVID-19 pandemic has had a significant impact on the North America Online Sports Betting Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:
- Sports Event Cancellations and Postponements: The COVID-19 pandemic led to widespread cancellations and postponements of sports events globally. With major leagues and tournaments suspended, there was a significant reduction in available betting opportunities. The absence of live sports events directly impacted the revenue streams for online sports betting operators, leading to a temporary decline in market activity.
- Economic Uncertainty and Consumer Spending: The economic uncertainty caused by the pandemic led to changes in consumer behavior, with individuals becoming more cautious about discretionary spending. Many people faced financial challenges, and this impacted their willingness to participate in online sports betting. The overall decrease in consumer spending and disposable income had a direct effect on the sports betting market during the initial stages of the pandemic.
- Resumption of Sports Events: As sports leagues and events gradually resumed operations with enhanced safety measures, the availability of live sports increased. This resumption played a crucial role in revitalizing the online sports betting market. The return of popular sporting events provided operators with a broader range of betting options, attracting both new and existing customers.
- Focus on Digital Engagement and Innovation: During the pandemic, online sports betting operators increased their focus on digital engagement and innovation. The introduction of virtual sports, esports betting, and other innovative offerings helped maintain user interest during periods of reduced live sports. This adaptability and emphasis on digital solutions contributed to the recovery and sustained growth of the online sports betting market.
- Promotional Offers and Incentives: To stimulate user activity and regain momentum, many online sports betting platforms implemented attractive promotional offers and incentives. These could include bonus bets, cashback promotions, and loyalty programs designed to reward and retain customers. Such strategies helped operators regain and expand their user base post the pandemic-related disruptions.
- Acceleration of Mobile Betting: The pandemic accelerated the shift towards mobile betting, as people sought convenient and accessible ways to engage in online sports betting. Operators invested in user-friendly mobile apps and responsive websites, capitalizing on the increased usage of smartphones and tablets. This emphasis on mobile platforms not only facilitated recovery but also aligned with broader trends in consumer behavior.
In conclusion, the COVID-19 pandemic has had a mixed impact on the North America Online Sports Betting Market, with some challenges and opportunities arising from the pandemic.
List of the prominent players in the North America Online Sports Betting Market:
- DraftKings Inc.
- FanDuel Group
- BetMGM
- PointsBet
- William Hill plc
- Caesars Entertainment Corporation
- 888 Holdings plc
- Kindred Group plc (Unibet)
- Bet365 Group Ltd.
- The Stars Group Inc.
- BetRivers (Rush Street Interactive)
- Fox Bet
- Wynn Resorts Limited
- Barstool Sportsbook
- Golden Nugget Online Gaming
- Others
The North America Online Sports Betting Market is segmented as follows:
By Type
- Line-In-Play
- Fixed Old Betting
- Daily Fantasy Sports
- E-Sports
- Sports Exchange
- Spread Betting
- Others
By Sports Type
- Football
- Cricket
- Tennis
- Baseball
- Volleyball
- Basketball
- Hockey
- Horse Riding
- Boxing
- Golf
- Racing
- Others
By Leagues
- Cricket
- MLB
- NBA
- NFL
- NHL
- LOL
Regional Coverage:
North America
- U.S.
- Canada
- Mexico
- Rest of North America