In reality, online sports betting sits at the center of the entire gambling ecosystem. This vertical is crucial for the sports betting market. It’s the main way to bring customers into the profitable digital gambling space.
Leading companies such as Flutter Entertainment (FanDuel), Entain (BetMGM), and DraftKings view these verticals as parts of a single, unified ecosystem. Their portfolio strategy is well integrated. It’s like the smooth user journeys on platforms like the 22Bet login. This shows that the future isn’t about sports or casinos; it’s about using one to enhance the other.
Market Sizing and Parallel Growth (2024-2025)
Both sectors are expanding at a rapid, nearly parallel double-digit pace. This co-dependence is tied to growth that comes from regulatory changes and mobile technology.
The Funnel Strategy: Debunking the “Vs.”
For top companies, the funnel strategy is key. It shapes their whole operating model.
- Acquisition (Top of Funnel): Sports Betting
Online sports betting serves as the primary gateway for bringing new customers into the ecosystem.
Sports betting is common and widely accepted. It’s often the first product that regulators approve when new markets open. (such as the U.S.). This is the biggest part of the iGaming market. It’s worth $44.2 billion in 2024, making up over 56% of all online gambling revenue.
- Monetization (Bottom of Funnel): iCasino & iGaming
This is where the profit lies. Online casino gaming remains the most lucrative segment, projected to hit $19.1 billion in 2024. With strong performance in slots and table games and a 12.2% CAGR, it continues to outpace sports betting in profitability.
The strategy is simple:
- At the top of the funnel, operators attract users through costly sportsbook promotions.
- Combine them into a single wallet.
- Then operators steer those customers toward higher-margin products like iCasino games, poker, and lotteries.
Sustained profitability relies on using the sportsbook as the start of a wider funnel strategy.
1. The Engine: Regulatory Liberalization
It is the most potent driver. The market is regulated. Growth involves more than adding new users. It also covers the Total Addressable Market (TAM). This market increases when more jurisdictions legalize the activity.
2. The Enabler: Technological Penetration
Smartphones are now common. 5G gives us fast internet. Secure digital payments make shopping safer. These elements have changed the industry. Mobile drives around 70% of all revenue, so the sector is clearly mobile-first. In-play (live) betting is now more popular. It changes how people watch sports, making it a more engaging experience.
The Central Restraint: The “Boom-and-Backlash” Cycle
Ironically, the push from regulations that helps the industry grow also creates its biggest risk. Marketing visibility is rising fast in the U.S. and Europe. This quick saturation is leading to a noticeable social and political backlash. Gambling addiction harms consumers. So, stricter rules on ads and promotions are being put in place. We see this happening in the UK and Germany.
A Snapshot of the Global Gambling Market
- Europe is the most developed and profitable gambling market. Yet, it also deals with some of the toughest regulations. It is facing big regulatory challenges and advertising bans. This is what a fully developed U.S. market will likely encounter.
- North America continues to dominate as the world’s fastest-expanding gambling region. This growth comes from U.S. legalization, state by state.
The region is experiencing rapid, volatile growth marked by sharp expansions followed by inevitable corrections.
What Comes Next for the Industry
Technology will define the future of both markets.
- Artificial intelligence now underpins critical operations, from personalized marketing to real-time odds adjustments. It’s used in personalized marketing. It gives bet recommendations based on individual factors. It also supports risk management by updating live odds in real time.
It has also begun playing a key role in responsible gambling tools, helping identify risky behavior patterns early.
An Integrated Future
For operators, investors, and regulators, the data shows that online gambling and sports betting go hand in hand.
Running a standalone sportsbook is costly and yields slim margins. Operators can only achieve meaningful returns through a fully integrated, multi-vertical portfolio. For investors, success isn’t about market share. It’s also about how well an operator can mix low-margin sports with high-margin iGaming products.
The old “sports vs. casino” divide no longer applies — the future is a unified, tightly interconnected funnel system.