Crypto, Sweepstakes, and Latin America Drive Growth

Key Drivers and Predictions

Crypto: The rise of cryptocurrency and its integration with gambling platforms is creating new opportunities for growth and attracting interest from investors.

Free-to-play games with in-game currency are gaining popularity, offering a potential avenue for expansion for sportsbooks.

Emerging formats like "pick 'em" fantasy, where users make simple predictions without point spreads, are gaining traction and could attract M&A interest.

The collectibles market, particularly sports cards and memorabilia, presents an untapped opportunity for gambling companies to diversify their offerings.

As countries like Brazil legalize sports betting, the region is expected to become a major growth market, attracting North American operators and driving M&A activity.

Cryptocurrency's integration with gambling platforms is unlocking new possibilities. Its access to a large user base and the potential for cross-fertilization between traditional betting and crypto-based wagering make it an attractive area for investment.

"Pick 'em" fantasy, where users simply predict outcomes without point spreads, is gaining popularity and could attract M&A interest. With several challenger brands already in the space, a major operator launching its own version could trigger consolidation.

Sportsbooks are expected to expand into sports sweepstakes, offering free-to-play games with in-game currency. Prediction markets, which have expanded into sports contracts, could also see growth and attract investment.

The collectibles market, particularly sports cards and memorabilia, presents an untapped opportunity for gambling companies to diversify their offerings. Fanatics' acquisition of Topps and PWCC Marketplace demonstrates the potential in this area.

With countries like Brazil legalizing sports betting, Latin America is poised to become a major growth market. North American operators are expected to move into the region, driving M&A activity and helping to develop the market.

Overall, investors expect significant M&A activity in the sports and gambling industry in the next two years, driven by these key trends and the growing popularity of online gambling.