Revenue is expected to exhibit an annual growth rate (CAGR 2025-2030) of 7.01%, leading to a projected market volume of US$733.22bn by 2030.
At the same time, global fantasy sports market is projected to reach tens of billions by 2032 and beyond.
Every day, we see more information about the growth of the market, get more ads on the websites, personalized notifications on the phones offering sport offers for free and see movies dedicated to gaming personages.
The growth is fast and overwhelming, so what’s driving it?
In this article, we shall speak about the factors that are driving the explosive growth of gaming, fantasy sports and sports betting in 2025.
Let’s dive in!
Reason 1. Widespread Legalization and Standardization
In the past, gaming was considered a useless activity and wasn’t considered an appropriate activity. Yet, with time, as gaming leagues developed together with the new ways of monetization, the play-to-earn gaming became standardized and developed into a new branch of economy.
As for sports betting, many countries worldwide, as well as several US states, banned various forms of sports betting, including online sports betting. In recent years, the situation changed.
As many countries and US states have moved to legalize and regulate sports betting, many businesses that were previously operating in the black market have started conducting official activities, paying taxes, and enhancing the value and quality of their services.
This influenced betting on fantasy sports, which increased their audience and engagement.
Reason 2. The Growth of Mobile Technologies
Previously, betting and gaming were restricted activities.
With the growth of the internet, online gaming and betting became possible. Yet, desktop activities do have limits, which you can’t say about mobile apps.
They are simple, lightweight, and convenient, allowing users to play on the go at any time of day.
What is more important is that the apps began broadcasting popular sports events, gaming events with the ability for advanced l features. They became moneymakers by themselves, thanks to ads and fees.
As the growth of mobile technologies makes gaming and sports betting more accessible to everyone, it is clear that the market will continue to grow. For example, the sports betting app market is forecasted to grow at a CAGR of approximately. 13.5% from 2026 to 2033, reaching USD approx. $30 Billion by 2033.
Reason 3. The Entry of The Younger Audiences
Gen Z and Millennials are two audiences that are more engaged with gaming than previous generations. First of all, they are the generations that grew up with the Internet and are accustomed to fantasy sports, esports, and interactive experiences.
Social betting, leaderboards, and betting content on TikTok & YouTube drive engagement. Gamification features make users come back, and the growth of social features, and gaming communities becomes a trend.
Therefore, based on the growing online culture, we can predict that the expanding audience will propel the gaming, and fantasy sports market forward.
Reason 4. Partnerships Between Sports Leagues and Brands
In sports, betting is no longer in the shadows. Leagues like the NFL, NBA, and UEFA have now become official sportsbook sponsors. This allowed for the integration of sports betting into halftime shows.
Athletes began promoting sportsbooks, and odds are displayed during broadcasts. Now, live game odds appear on-screen during major sports broadcasts in Europe and the US, and that doesn't just whitelabel betting but also makes it more popular for broad audiences.
In gaming, there is a similar situation. Brands like Coca Cola become the official sponsors of gaming events, starts and bands select virtual reality as a place to host concerts and big names in pop culture release the collections of branded NFTs, thus making gaming more popular.
Reason 5. Personalization And AI Are Revolutionizing the Way We Do Business
The growth of AI personalization has transformed many markets. Gamers and bettors love to receive personalized notifications about their favorite events, teams, and players, as well as reminders of upcoming shows, bonuses, and offers.
Based on user preferences and previous activity, they may receive personalized loyalty programs, which encourage them to spend more time on gaming activities, and spend more money as well.
Artificial intelligence makes betting even smarter:
- Users get personalized suggestions and analysis
- AI-powered bots and agents help users track trends and manage bankroll transactions.
- Experienced gamers use analytics to develop strategies, while tech companies are building advanced algorithms that allow for better and more accurate predictions on sports season outcomes.
As we have just entered the age of AI, we can assume that the technology will continue to influence the market even more.
Trends, Risks, and Opportunities
As technologies grow and their influence on gaming and fantasy sports, there may be different new trends in the field:
- AI-powered sportsbooks: The AI-powered sportsbooks promise more automation, the growth of personalized agents, and better insights into seasonal trends and predictions.
- VR-gaming and esports: As esports transition to VR and metaverse events attract millions of viewers, betting on sports is likely to establish a presence in all aspects of VR, including games, metaverses, esports events, and any new developments that emerge on the horizon.
- Responsible gaming tools will become fully legal everywhere, or almost everywhere, which is the current trend.
- Blockchain and decentralization are now also on the rise. Although some legislators are concerned that crypto is creating a grey area in the economy, the growth of blockchain and Web3 technologies, with their benefits such as decentralization, transparency, and anonymity, promises further expansion of blockchain into the development of gaming technologies.
Yet, there are also issues and challenges that the betting market still has to solve. The rising gaming and gambling addiction raises concerns, and society pushes governments to increase gambling regulations, implement new restrictions, and implement responsible gaming software.
Additionally, there are numerous match-fixing scandals and reputation issues that have an impact on the sports' reputation and integrity.
Summing Up
In recent years, gaming and sports betting has been influenced by several technological and legislative factors, which have contributed to its growth. AI, mobile technologies, legalization of betting and the development of VR and AR gaming, esports, and more – have all become a basis for the stable and continuous growth of online entertainment.