ID: PMRREP33025| 183 Pages | 28 Nov 2025 | Format: PDF, Excel, PPT* | IT and Telecommunication
The in-game gambling and loot boxes market size is likely to be valued at US$22.7 Billion in 2025 and is expected to reach US$36.2 Billion by 2032, growing at a CAGR of 6.9% during the forecast period from 2025 to 2032, driven by rising demand for interactive, monetized gaming experiences, where players seek risk-reward mechanics, personalized content, and exclusive virtual items.
Advancements in mobile gaming, cloud platforms, and real-time analytics enable seamless integration of loot boxes and in-game gambling features, while esports, live streaming, and cross-platform play further boost engagement and spending.
| Key Insights | Details |
|---|---|
| In-game Gambling and Loot Boxes Market Size (2025E) | US$22.7 Bn |
| Market Value Forecast (2032F) | US$36.2 Bn |
| Projected Growth (CAGR 2025 to 2032) | 6.9% |
| Historical Market Growth (CAGR 2019 to 2024) | 5.1% |
The rapid expansion of high-speed internet, declining smartphone costs, and enhanced mobile capabilities have democratized access to in-game gambling globally. According to GSMA, mobile technologies added US$950 billion to Asia Pacific GDP in 2024 (~5.6% of GDP) and are expected to reach US$1.4 trillion by 2030. Mobile-first architectures and HTML5-enabled cross-platform functionality provide seamless, real-time gambling experiences.
As of April 2025, 5G has surpassed 2.25 billion connections, with adoption growing four times faster than 4G, and 5G users consuming 1.9× more data, enabling graphically rich multiplayer games with integrated loot boxes. This widespread mobile adoption is directly driving higher engagement, in-game spending, and expansion of the in-game gambling and loot boxes market.
The growing convergence of esports and live-service games is accelerating demand for in-game gambling and loot boxes. By 2025, over 320 million esports enthusiasts worldwide will drive interest in exclusive cosmetics and rare items, often obtained through loot boxes.
Live-service games with seasonal updates and limited-time rewards sustain continuous engagement, while esports tournaments and streaming platforms amplify visibility of rare items and aspirational spending.
According to the U.K. Gambling Commission’s Young People and Gambling 2024 Report, 68% of youth were aware of paid in-game items, 63% knew about loot boxes, and 3% had placed esports bets, illustrating the growing link between competitive gaming, microtransactions, and gambling behavior.
Regulatory legalization and market formalization across major jurisdictions are driving growth. Clear legal frameworks in North America, Europe, and Asia legitimize operators, reduce compliance risk, and attract institutional investment. Europe’s regulatory harmonization, through initiatives such as the upcoming Digital Fairness Act, is expected to strengthen consumer trust by 2026 through transparency and probability disclosure mandates.
In South Korea in March 2024, around 90% of the top 100 iPhone games featured paid loot boxes, with 84.4% disclosing their probabilities, reflecting increased regulatory compliance. Such formalization enables responsible gaming, fosters innovation, and expands participation through greater trust and legal certainty.
Increasing legislative and consumer scrutiny over loot box mechanics limits monetization strategies, particularly for minors. Australia classifies chance-based in-game purchases as 'M' or 'R18+' if simulating gambling, while multiple U.S. states have proposed restrictions. ESRB and PEGI mandate labeling for random in-game purchases, and China has enforced probability disclosure since 2017.
Non-compliance remains an issue in the U.K. and South Korea, while enforcement actions, such as the US$20 million FTC settlement against HoYoverse (Genshin Impact) for underage sales in January 2025, highlight operational risks. Market adjustments, including temporary loot box removal in titles such as Overwatch 2 and EU calls for transparency and spending caps, further constrain impulse-driven monetization models.
The convergence of data analytics, AI, and personalization technologies presents a significant growth opportunity in the in-game gambling and loot boxes market. Operators leveraging AI-driven recommendation engines analyze player behavior, engagement signals, and betting patterns to deliver hyper-personalized experiences, enhancing retention and ARPU.
Real-time predictive analytics enable dynamic odds, same-game parlays, in-play micro-betting, and fantasy league integration, attracting both casual and sophisticated users. Live betting with mobile accessibility expands market penetration, while advanced player profiling ensures responsible gambling compliance. Companies with proprietary AI platforms gain a competitive edge, generating recurring revenue through targeted engagement and technology-driven monetization.
The legalization of sports betting across multiple jurisdictions presents a significant growth opportunity. Regulated frameworks enable developers to integrate in-play wagering, boosting player engagement through real-time betting experiences. Cross-promotion with esports tournaments enhances visibility for loot box offerings, while regulatory clarity encourages innovation in monetization features.
In North America, states with legal sports betting generated US$505.96 million in Q3 2023, up 20.5% year-on-year, according to the U.S. Census Bureau, and in Australia, 12.5% of adults reported placing a sports bet in 2024, according to AIFS, highlighting rising consumer adoption.
Loot boxes are expected to account for more than 40% of the market share in 2025 & are projected to be valued at US$9.1 Billion by 2032 due to their strong alignment with players' needs for instant gratification, personalization, and social recognition.
Gamers seek exclusive items, rare cosmetics, and competitive advantages that enhance in-game status, driving frequent engagement. The psychological appeal of chance-based rewards satisfies the desire for excitement and unpredictability, making loot boxes highly addictive. Their integration in popular esports and multiplayer titles meets the growing demand for continuous content updates without full game purchases.
Sports betting is projected to grow at the highest CAGR, driven by rising demand for real-time engagement and interactive experiences among players. Gamers seek instant rewards and adrenaline-driven excitement, which sports betting delivers through live events and in-play wagering.
The convergence of fantasy sports, micro-betting, and traditional sports betting creates multi-modal engagement strategies that maximize user lifetime value. Sports betting’s clear regulatory positioning, compared to its ambiguous classification, makes this segment particularly attractive.
Mobile is expected to account for over 54% share with a value accounting for over US$12.3 billion in 2025, due to its unmatched accessibility and convenience, allowing users to play anytime and anywhere. The widespread adoption of smartphones and affordable mobile data plans meets the growing demand for instant gaming experiences.
Mobile platforms also support seamless integration of in-app purchases and microtransactions, fulfilling players’ desire for quick cosmetic upgrades and rewards. The need for social connectivity and competitive interaction further drives engagement on mobile devices, making them the preferred channel.
User interface optimization, responsive design implementation, and battery consumption efficiency represent critical competitive differentiators in mobile platform competition.
PCs (personal computers) are expected to grow rapidly due to their ability to support high-performance gaming, immersive graphics, and complex game mechanics that appeal to serious gamers.
PCs offer a wider range of games with integrated loot box systems and in-game gambling features, meeting players’ demand for customization, competitive play, and enhanced user experiences. The growing esports ecosystem on PC platforms further drives engagement, increasing spending on loot boxes and virtual items.
North America represents a mature and highly regulated market, with fragmented state-level regulations; for instance, New York imposes a 51% tax on mobile sports-wagering GGR. In 2024, about 190.6 million Americans, 61% of the population, played video games, creating a broad base for monetization mechanisms such as loot boxes and microtransactions.
Free-to-play and games-as-a-service models have increased exposure to chance-based in-game purchases, with U.S. consumer spending reaching ~US$58.7 billion, including US$50.6 billion on digital content, according to the ESA. Publishers leverage loot boxes as both revenue streams and engagement tools, using live-service updates and events to sustain spending beyond initial game sales.
The CFPB highlighted that games often use gambling-like mechanics to encourage spending, underscoring the need for regulatory scrutiny.
Asia Pacific is projected to account for over 42% of the market, reaching more than US$9.5 billion by 2025. China (via Macau) dominates the region, though anti-gambling policies have shifted focus from VIP junkets to mass-market tourism. Japan presents a growing opportunity under its integrated resort framework, with strong cultural acceptance of “gacha” mechanics; a 2025 survey found 18.8% of people in their 20s overspent on in-game purchases.
South Korea benefits from “foreigner-only” casinos capturing inbound demand, while ASEAN countries such as the Philippines, Vietnam, Cambodia, and Malaysia show rising investment amid tourism growth. India, though legally constrained, sees high engagement among young, digitally-native gamers, with ~13 hours of weekly gaming and over 485 million online gamers in 2024.
Europe’s in-game gambling and loot boxes market, supported by regulatory maturation and operator consolidation, with Germany and Austria driving growth through newly regulated remote gambling markets, highlighted by Banijay Group’s €9.4 billion (US$10.9 billion) acquisitions of Betclic and Tipico.
The region’s gross gaming revenue reached €123.4 billion (US$143.2 billion) in 2024, up 5% from 2023, according to the European Gaming and Betting Association (EGBA) in partnership with H2 Gambling Capital, while the U.K. benefits from a mature regulatory framework and large operators such as Bet365 serving ~90 million users globally.
Compliance costs, including mandatory probability disclosure, age verification, and licensing, challenge smaller operators, and EU regulatory discussions on loot boxes push developers toward alternative monetization models such as battle passes and cosmetic item shops. Game-makers increasingly integrate loot boxes into gameplay loops, with random rewards driving repeat purchases, which regulators recognize as bundles of random virtual items purchased with real money.
The global in-game gambling and loot boxes market is largely fragmented, with numerous small- to mid-sized developers competing alongside a few dominant global gaming companies. These companies offer unique game mechanics, exclusive loot items, and cross-platform integration to retain player engagement.
Forming strategic partnerships and collaborations with popular franchises or streaming platforms helps them expand their user bases. Companies invest heavily in data-driven personalization and in-game events to maximize monetization and encourage repeat purchases.
The in-game gambling and loot boxes market is projected to be valued at US$22.7 Billion in 2025.
The players’ desire for engaging, risk-reward gaming experiences and exclusive virtual items that enhance gameplay and personalization is a key driver of the in-game gambling and loot boxes market.
The in-game gambling and loot boxes market is poised to witness a CAGR of 6.9% from 2025 to 2032.
Rapid adoption of cloud gaming, advancements in real-time analytics, and the integration of esports and live-streaming platforms that boost player engagement and monetization are creating strong growth opportunities.
Electronic Arts Inc., Activision Blizzard, Inc., Ubisoft Entertainment SA, Tencent Holdings Limited, Valve Corporation, and Epic Games.
| Report Attribute | Details |
|---|---|
| Historical Data/Actuals | 2019 - 2024 |
| Forecast Period | 2025 - 2032 |
| Market Analysis | Value: US$ Bn |
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