Skill Gaming Market Report 2025

The skill gaming market size has grown rapidly in recent years. It will grow from $43.99 billion in 2024 to $50.96 billion in 2025 at a compound annual growth rate (CAGR) of 15.9%. The growth during the historic period was driven by the widespread adoption of smartphones and tablets, improved internet connectivity and broadband access, the rising popularity of online gaming communities, the expansion of secure payment gateways, and the integration of social features within gaming platforms.

The skill gaming market size is expected to see rapid growth in the next few years. It will grow to $90.65 billion in 2029 at a compound annual growth rate (CAGR) of 15.5%. The growth anticipated in the forecast period is driven by increasing demand for interactive and competitive gaming experiences, the expansion of esports and skill-based tournaments, growing adoption of mobile-first gaming solutions, rising investments by gaming companies in skill-based formats, and supportive regulatory developments in certain regions that favor skill gaming. Key trends expected to shape the market include advancements in augmented and virtual reality for more immersive gameplay, the use of artificial intelligence to deliver personalized experiences, integration of blockchain for secure transactions and reward systems, collaboration with streaming platforms, and the development of cloud-based gaming infrastructure.

The rising penetration of smartphones is expected to drive the growth of the skill gaming market. Smartphone penetration refers to the proportion of the population that owns and regularly uses smartphones, highlighting the widespread adoption of mobile technology in everyday life. This growth is largely attributed to the increasing affordability and accessibility of smartphones, making them available to a broader audience. Greater smartphone usage supports the expansion of skill gaming by enabling easy access to games anytime and anywhere, catering to both casual and competitive players. It boosts user engagement by allowing seamless, on-the-go gameplay, enhancing convenience and participation in skill-based competitions. For example, in October 2023, the GSM Association reported that nearly 4.3 billion people, about 53% of the global population, were using smartphones to access the internet. Additionally, around 80% of mobile internet users were using 4G or 5G smartphones, an increase of 330 million users from 2022. This growing smartphone adoption is a key factor driving the skill gaming market forward.

Leading companies in the skill gaming market are focusing on innovative solutions like peer-to-peer, player-adjusted payout systems to boost player engagement and deliver more personalized, competitive gaming experiences. These systems allow players to compete directly with one another, with payouts dynamically determined by player performance and strategic choices rather than fixed amounts. For example, in June 2024, Full Pull Entertainment LLC, a U.S.-based digital media and sports technology company, launched Full Pull Picks, a skill-based gaming platform that offers real-money wagering on truck and tractor pulling events. The platform features a peer-to-peer, player-adjusted payout system, where entry fees are pooled and prizes are distributed based on the total distances pulled by chosen drivers. This approach creates a more interactive and fair wagering environment, allowing users to legally participate in skill-based betting by selecting drivers with varying odds and earning rewards based on actual event outcomes.

In December 2024, Mobile Premier League (MPL), an online gaming company based in India, acquired CloudFeather Games Private Limited for an undisclosed amount. The acquisition is intended to enhance MPL’s technological capabilities by incorporating CloudFeather’s advanced gaming infrastructure. CloudFeather Games, also based in India, specializes in technology solutions for skill gaming, real-money gaming, and Web3 development tools for game creators.

Major players in the skill gaming market are FanDuel Group Inc., Flutter Entertainment plc, Zynga Inc., Skillz Inc., Nazara Technologies Limited., Delta Corp Limited., Junglee Games Pvt. Ltd., Games24x7 Private Limited., Dream Sports Pvt. Ltd., AviaGames Inc., GameDuell GmbH, WorldWinner, GamesKraft Technologies Private Limited, PlayerzPot Media Private Limited., OnMobile Global Limited., WinZO Games Private Limited., EazeGames IE B.V., Megashots Internet Private Limited, Pokerbaazi, and Mobile Premier League.

North America was the largest region in the skill gaming market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in skill gaming report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the skill gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the recreation sector, particularly in the supply of imported sports equipment, outdoor gear, and leisure products. Manufacturers and retailers are facing higher costs for items such as bicycles, camping gear, fitness machines, and gaming consoles, much of which are sourced from overseas with limited domestic alternatives. Small businesses operating in the recreational retail space are especially affected, with some reducing inventory or increasing prices to offset margin pressure. Event organizers and recreational facilities are also facing cost hikes for imported equipment and infrastructure materials. In response, the industry is exploring alternative sourcing from tariff-free regions, increasing reliance on local suppliers, and urging policymakers to consider exemptions for non-essential but widely used recreational products.

Skill gaming involves games where the result mainly depends on a player’s talent, strategy, and decision-making rather than luck. Its primary goal is to challenge and reward players based on their abilities, offering entertainment, competition, and often chances for monetary rewards or recognition.

The main types of skill gaming include skill-based slots, esports tournaments, fantasy sports, poker, and others. Skill-based slots are a kind of slot machine where outcomes are affected by the player’s skill or choices, blending traditional slot mechanics with interactive gameplay. This type of gaming can require both physical and mental skills and spans genres like tile-based, puzzle, dice-based, board, animated, card, word- or number-based games, and more. Skill gaming is accessible on various platforms such as desktop, mobile, consoles, virtual reality (VR), and augmented reality (AR), and is available through multiple channels including online platforms, land-based casinos, mobile apps, social media, and others.

The skill gaming market research report is one of a series of new reports that provides skill gaming market statistics, including skill gaming industry global market size, regional shares, competitors with a skill gaming market share, detailed skill gaming market segments, market trends and opportunities, and any further data you may need to thrive in the skill gaming industry. This skill gaming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The skill gaming market includes revenues earned by entities through online poker and card games, puzzle and trivia competitions, eSports betting and contests, and educational skill challenge apps. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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