Skill Gaming Market

Report Overview

Skill Gaming Market is anticipated to grow at a CAGR of 13.5% in the forecast period (2024-2034), with the market size valued at USD 33.6 billion in 2023 and projected to reach USD 135.9 billion by 2034.

Product Overview

Skill gaming refers to game form in which the outcome is dependent upon the player’s ability and skill rather than based on luck. The outcomes depend on strategic and logical thinking applied by players. Skill gaming can be categorized into different categories and subcategories including card-based games like trick-taking and solitaire, as well as fantasy sports betting which involves boxing, football, rugby games and other sports. Additionally, table games include roulettes and poker, contribute to this diverse genre. These games can be accessible on both online or physical platforms making them more attractive and easy for the players and individuals playing them. Technological advancements have played an essential role in increasing the availability of skill based gaming, which allows players to engage efficiently with the convenience of mobile devices. This flexibility helps in improving the overall consumer experience, providing flexibility to enjoy skill-based games.

Market Highlights

Skill Gaming Market is expected to exhibit a CAGR of 13.5% during the forecast period, 2024-2034

Skill Gaming Market is anticipated to reach USD 135.9 billion, growing at a CAGR of 13.5% during the forecast period, owing to the rising demand due to significant developments by the companies and increasing interest from public towards these games. The different variations of skill games such as Card Based, Fantasy Sports, Table Based and others, became popular among people that altered better growth of the market, worth billions. The major reasons for the growth of these games are their simple and easy to use structures and the larger reward prizes that one can win and earn with minimal real time currency investment, without specific limitations that were with casinos and offline skill games. Additionally, the Covid-19 pandemic made these games more appealing, since players and individuals were able to play these games on online websites, applications and portals without any physical presence required.

Source: Fatpos Global

Skill Gaming Market Segmentation

Fantasy Sports segment will dominate due to increasing popularity securing a significant market share

Skill Gaming Market is classified based on Game Type into Card Based Games, Fantasy Sports, Puzzle Based Games, Table Games, and Others, Fantasy Sports segment is rapidly moving towards substantial growth with new future projects and changes. Fantasy sports games mock real-time sports like football, basketball, boxing, and others, which involves participants creating their teams or predicting final scores to earn real financial prizes and gifts. The widespread appeal of mainstream sports stands out as a key factor behind the increasing popularity of these fantasy-based games among sports enthusiasts. While the merger of virtual games with real-world sports has created an exciting blend, attracting a diverse audience and promoting an environment where individuals engage passionately in strategic team-building or score predictions, increasing the overall appeal of fantasy sports. While the integration of social media platforms and online communities has created a great bonding among the fantasy sports enthusiasts. Players can now communicate and share their experiences with global communities.

Popularity of Online Skill Games is increasing due to the user-friendly component that make playing games more accessible

Skill Gaming Market is classified based on Mode Type into Online and Offline Modes. The online segment holds the majority share, with users gathering to the digital platforms like websites and applications to access these games. The appeal lies in the user-friendly interfaces and easy to use applications, improving the overall gaming experience. A significant advantage is the virtual availability of these games, allowing individuals to play from any world corner of the world without having any physical presence.  Looking ahead, the online gaming market is experiencing significant expansion, enabling the inclusion of more users as variety of new game formats are being developed.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increase in Smartphone Use and Mobile Gaming will develop Market Growth

The rapid growth of technological devices is making skill-based games more accessible to a wider audience, especially in developing countries where mobile gaming is often the primary form of engagement. Fantasy games and card-based games are particularly well-adapted to mobile platforms due to being very simple and easy to play. As smartphone popularity continues to increase and mobile gaming expands, fantasy games and card-based games are poised for significant growth in mobile markets. Favourable growth in the technologic device industry and improved connectivity can develop the skill gaming environment. By using these trends, game companies can position themselves for success in this rapidly growing market.

Integration of Technology in Skilled Games will drive future market growth

The combination of Technology such as Machine learning and Artificial intelligence in skill-based games is creating exciting opportunities to improve the gaming experience. AI can generate opponents that are more challenging and exciting, offer game suggestions according to individual players, and enhance the fairness of matchmaking systems. ML algorithms can examine player data to recognize patterns and trends, enabling developers to fine-tune game mechanics and equilibrium. As technological advancements take place, new technology and its integration into skill-based games is anticipated to become even more recognizable, continuing to boost market growth.

Restraints

Government Restrictions and Addiction problems facilitating Market Growth:

The skill-based gaming industry is facing problems due to government actions, like increased taxes on winnings, limitations on user activity, and banning platforms. These interventions have led to a slow growth in overall market growth. There’s an increasing concern among people that playing these games might lead to addiction and consecutive financial losses, rejecting the possibility of winning big prizes. The combination of government restrictions and growing awareness about associated risks poses a significant challenge to the growing skill-based gaming market.

Recent Developments

•  In October 2023, FanDuel partnered with the National Football League (NFL) to take up the role as official fantasy football partner. This partnership grants FanDuel rights to access NFL data and branding, allowing the company to create innovative fantasy football products.

• In November 2023 Draftkings launched a sports betting app in Ontario, Canada. Marking a milestone, this app is the pioneer legal sports betting platform in Ontario, offering a diverse range of betting options across a wide range of sports.

• In September 2023 PokerStars hosted the PokerStars Festival in Barcelona, a live poker tournament series involving participation from more than 10,000 players worldwide. This festival stands as the largest poker event ever hosted in Europe till date.

• In October 2023, 888poker inaugurated a fresh online poker room in Spain. This platform hosts a diverse range of poker games, such as Texas Hold them, Omaha, and Seven-Card Stud.

• In November 2023, William Hill, disclosed a partnership with the New York Knicks to take up the respected position as the team's official sports partner. This collaboration opens wide opportunities for William Hill to influence Knicks branding, marketing opportunities, and craft exclusive sports betting experiences tailored for fans.

Skill Gaming Market

Key Players

• FanDuel
• DraftKings
• PokerStars
• 888poker
• William Hill
• Bet365
• Paddy Power
• bwin
• betfair
• Sky Bet
• Ladbrokes Coral
• Betsson
• Unibet
• Vbe
• Dream 11
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Skill Gaming Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America currently dominates the Skill Gaming Market, with the United States and Canada experiencing remarkable growth in recent years. This increase can be credited to the accessible gaming infrastructure, including devices and consoles, as well as the financial ability and knowledge of individuals to involve in these skill-based games. The region is home to major skill-based gaming companies that significantly contribute to its booming industry.

Impact of Covid-19 on Skill Based Gaming

The Covid-19 pandemic had a mix impact on the Skill Gaming Market, increased engagement with people spending more times, which increased the overall engagement and user growth. As casinos and arcade games saw a hit with restrictions, which boosted demand for online skill games. Popularity in E-sports segment also saw a competitive rise as traditional sports were annulled, which attracted various sponsors that used to sponsor the offline segments. While the pandemic saw some positives for the market, negatives such as regulatory restrictions which tightened gambling activity, with reduced spending on in-app purchase by the general public, due to financial uncertainty and intensive competition affected the market development. While, overall market had a mix impact, it helped the industry to grow significantly post-pandemic, with mobile gaming and e-sports becoming the key segments of growth. 

Skill Based Gaming is further segmented by region into

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Skill Gaming Market Scope and Segment

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