FINANCING
Raising capital in regulated gambling and betting markets WHILE RECENT ACTIVITY SHOWS GAMING COMPANIES ARE INCREASINGLY INVESTIBLE, THE PATH TO FUNDING REMAINS A NARROW AND WINDING ONE SAYS CRISTINA ROMERO
Introduction Raising capital in gambling and betting markets presents unique challenges and opportunities for entrepreneurs and investors alike. This rapidly growing and competitive industry has predictably attracted attention from venture capital and private equity firms. In 2024 alone, sports betting and online gambling companies raised US$150 million from venture capitalists in the United States. The influx of capital reflects growing confidence in the sector’s long-term viability, despite the complex regulatory frameworks that govern it across different jurisdictions. While the U.S. has demonstrated high levels of activity, Europe’s online gambling market is experiencing steady growth, with an expected compound annual growth rate (CAGR) of 6.3 percent from 2025 to 2033. Additionally, the Latin American
(LATAM) online gaming industry is projected to quadruple in size, reaching US$6.75 billion by 2027. These figures highlight a sector with significant investment potential, albeit within a complex regulatory landscape that requires careful navigation and strategic planning. The global gambling market’s expansion has been fueled by several factors, including technological advancements, shifting consumer preferences, and the gradual regulation of key markets. Mobile technology has dramatically increased accessibility, while innovations in payment processing, data analytics, and customer engagement have enhanced the user experience and operational efficiency. These developments have created new opportunities for entrepreneurs and investors, but they have also raised the bar for compliance, responsible gambling measures, and operational excellence.
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IMGL MAGAZINE | JUNE 2025
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