Online Gambling - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The Online gambling market size in 2026 is estimated at USD 101.45 billion, growing from 2025 value of USD 91.63 billion with 2031 projections showing USD 168.71 billion, growing at 10.72% CAGR over 2026-2031.

Factors such as the rising penetration of smartphones, the widespread rollout of 5G, and increasingly harmonized regulations across major jurisdictions are driving a swift migration to digital channels. As of 2024, the GSM Association (GSMA) reports North America leading globally in 5G adoption, boasting a rate of 55%, trailed closely by Greater China. Operators are harnessing live streaming, AI-driven odds engines, and cloud-native architectures, often eclipsing the immersive experiences of traditional land-based venues. With real-time data feeds, operators can manage hundreds of micro-markets for each sporting event, boosting both the frequency of bets and the average ticket size. On the regulatory front, governments are embracing the new tax revenues, viewing regulated iGaming not just as a fiscal tool in the post-pandemic landscape but also as a manageable alternative to gray-market activities, driving the market's growth.

Global Online Gambling Market Trends and Insights

Advancement of Digital Technologies

Advancements in digital technology are reshaping online gambling, evolving it from static web platforms to dynamic, AI-driven ecosystems that tailor experiences to individual users in real-time. By harnessing artificial intelligence and machine learning, operators can now analyze betting patterns, forecast user behavior, and fine-tune offerings with unmatched accuracy, gaining a competitive edge that's elusive for traditional operators. Today's platform development is dominated by mobile-first strategies, with operators pouring resources into progressive web applications and native mobile experiences, bringing console-quality gaming to smartphones. The synergy of 5G networks and edge computing slashes latency to almost nothing, facilitating live dealer experiences and real-time sports betting that can compete with being there in person. With the adoption of cloud infrastructure, operators can swiftly expand across various jurisdictions, all while adhering to local data residency mandates. This compliance is paramount as regulatory bodies place increasing importance on data sovereignty and safeguarding consumer rights.

Legalization and Regulatory Liberalization

Regulatory liberalization stands as the foremost structural force reshaping the global online gambling arena. Governments are increasingly acknowledging digital platforms as legitimate revenue streams, crafting frameworks that harmonize economic gains with consumer safeguards. The U.S. spearheads this evolution, legalizing gambling state by state. The National Council of Legislators from Gaming States is at the forefront, crafting model legislation that standardizes tax rates between 15% and 25% on adjusted gross revenue, ensuring operators face predictable environments. Brazil's Law 14.790/2023, cited by Brazil’s Secretariat of Prizes and Betting, showcases the regulatory maturity of emerging markets, mandating operators to set up headquarters in Brazil and adopt thorough responsible gaming protocols, all while raking in an estimated USD 4.5 billion in annual tax revenue. The UAE's launch of the General Commercial Gaming Regulatory Authority signifies a major shift in the Middle East, potentially turning the region into a magnet for licensed operators eyeing affluent demographics and tourism-centric markets. Meanwhile, France's ambition to legalize online casinos by 2025 hints at a broader European market expansion, moving past the confines of traditional sports betting. The Ministry of Economy and Finance in France projects revenues from these newly regulated activities could soar between EUR 748 million and EUR 1.5 billion.

High Taxation and Licensing Costs

High taxation and licensing costs create significant barriers to market entry while compelling established operators to improve operational efficiency and pursue economies of scale through consolidation or geographic expansion. Brazil's regulatory framework demonstrates this challenge, with operators facing a 12% tax on gross gaming revenue and licensing fees up to USD 6 million from January 2025 under Law No. 14,790/2023, as reported by Brazil's Secretariat of Prizes and Betting (SPA). These requirements create substantial capital barriers that benefit large multinational operators over local companies. Illinois's tiered tax structure, which increases rates based on operator revenue levels, shows how taxation can inhibit market growth by imposing higher effective tax rates on successful operators, limiting their ability to reinvest. In some jurisdictions, the combined federal, state, and local taxes reach up to 40% of gross gaming revenue, requiring operators to reduce marketing expenses, restrict bonus offerings, or increase house edges to maintain profit margins. The varying licensing costs across jurisdictions influence operator strategy, with companies prioritizing markets that provide favorable tax conditions and efficient regulatory processes instead of broad geographic expansion.

Other drivers and restraints analyzed in the detailed report include:

• Live Betting and Real-Time Streaming
• Improved Payment Solutions
• Cybersecurity and Fraud Risks

Segment Analysis

In 2025, sports betting commands a dominant 52.05% market share, leveraging the widespread appeal of mainstream sports and enjoying regulatory advantages over traditional casino games in various jurisdictions. With a projected CAGR of 11.75% through 2031, sports betting outpaces the overall market growth, fueled by the expansion of sports leagues, a year-round betting calendar, and the rising allure of esports wagering among younger audiences. While casino games thrive on innovations like live dealers and mobile-optimized slots, the lottery segment enjoys robust government partnerships and a solid consumer base. Bingo, though niche, boasts stable popularity in regions like the UK and parts of Europe, driven by cultural familiarity.

Sports betting's edge lies in its perceived skill element and social acceptance, easing its path to regulatory approval and consumer adoption, especially in markets where traditional casino games face hurdles. Football betting tops the charts, trailed by horse racing's robust infrastructure and tennis's consistent year-round tournaments. Data from the Gambling Commission highlights that on-course horse race betting in Great Britain saw an annual turnover exceeding GBP 238 million from April 2022 to March 2023, up from GBP 151.86 million the prior year. Moreover, blending fantasy sports with social betting features creates hybrid experiences, allowing operators to diversify their offerings and cater to a wider audience with varied preferences and risk appetites.

In 2025, mobile and tablet platforms command a 53.65% share of the gambling market, signaling a pivotal shift in consumption trends. With a projected CAGR of 13.65% through 2031, this segment underscores the growing embrace of smartphones and a strategic pivot towards mobile-centric product development. While desktop platforms remain vital for intricate betting tasks and professional gamblers, who often rely on multiple screens and sophisticated analytical tools emerging technologies are carving out spaces on other platforms. These include smart TV applications and voice-activated betting interfaces. By adopting a mobile-first strategy, operators harness device-specific features like biometric authentication, location services, and push notifications, crafting user experiences that are both more engaging and secure than their traditional web counterparts.

The benefits of mobile platforms transcend mere convenience. They offer real-time engagement opportunities that desktops struggle to match. These include location-based promotions, social sharing features, and augmented reality enhancements that elevate live sports viewing. The rise of progressive web applications (PWAs) streamlines the user experience, sidestepping the often cumbersome app store approval process. PWAs deliver a native app feel, seamlessly functioning across diverse operating systems and devices. Furthermore, the integration of mobile payments with gambling platforms paves the way for fluid user journeys from funding accounts to placing bets and making withdrawals effectively dismantling the barriers that once hindered the widespread adoption of mobile gambling.

The Online Gambling Market is Segmented by Product Type (Sports Betting, Casino, Lottery, and Bingo), by Platform (Desktop, Mobile, and More), by Age Group (18-24 Years, 25-34 Years, 35-44 Years, 45-54 Years, and 55+ Years), by Betting Type (Pre-Match/Fixed-Odds and Live/In-Play), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

In 2025, Europe accounted for a dominant 56.90% of global revenues, amounting to a substantial USD 52.15 billion. However, the region's CAGR is stalling as mature markets tighten their grip on advertising codes and impose bonus caps. Germany's lenient approach and the Netherlands' merit-based licensing are channeling grey operations into regulated platforms. This move not only safeguards tax revenues but also moderates headline growth. Meanwhile, Nordic leaders are pioneering harm-prevention measures, leveraging tools like AI-driven risk scoring and enforced loss limits.

North America's regulatory shift is yielding a robust 15.40% CAGR, the fastest among regions. The U.S. gross handle surged from USD 93 billion in 2024 to USD 110 billion in 2025, spurred by twelve states approving mobile sports wagering, as reported by the National Council of Legislators from Gaming States. Ontario's liberalized market approach is evident, with first-year receipts surpassing CAD 1.4 billion (USD 1.1 billion). The continent's online gambling landscape is heating up, underscored by cross-border merger and acquisition activities like DraftKings' acquisition of Jackpocket, highlighting the race for user bases and advanced technology.

Asia-Pacific, while brimming with potential, grapples with policy fragmentation. PAGCOR's withdrawal from offshore licensing has curtailed the region's hub capacity. In India, state-specific regulations swing between leniency and strictness. Yet, with high mobile engagement and an increasing acceptance of e-wallets, there's a promising upside once regulatory harmonization is achieved.

Latin America's fortunes hinge on Brazil's anticipated January 2025 launch. While Brazil's stipulations like mandatory local headquarters and a 12% GGR tax pose challenges, the nation's vast consumer market is too enticing to ignore. Both Argentina and Colombia exemplify the benefits of stable returns when there's clarity at either provincial or federal levels.

The Middle East and Africa's spotlight is on the UAE, marking its debut with a casino license. Wynn's ambitious USD 5.1 billion complex in Ras Al Khaimah, unveiled in October 2024, hints at a grander vision for entertainment-led economic diversification, potentially inspiring neighboring GCC states. While South Africa enjoys steady growth under the watchful eye of its National Gambling Board, Nigeria and Kenya are championing mobile sports betting, leveraging airtime-credit systems.

List of companies covered in this report:

• Betsson AB
• 888 Holdings PLC
• Entain PLC
• Flutter Entertainment PLC
• Draftkings Inc.
• Kindred Group PLC
• Bet365 Group Ltd
• 1XBET
• 22BET
• Sportpesa
• MGM Resorts International
• Super Group (SGHC Limited)
• Golden Nugget Hotels and Casinos
• El Royale Casino
• Logrand Entertainment Group
• Codere Online Luxembourg
• Grupo Caliente
• Playdoit
• Rush Street Interactive Inc.
• LeoVegas AB

Additional benefits of purchasing this report:

• Access to the market estimate sheet (Excel format)
• 3 months of analyst support