Is Sports Betting Leading to a Decline in Online Poker
The relationship between sports betting and online poker has become a central question for gaming operators and regulators as both markets compete for player attention and disposable income. Recent data from multiple jurisdictions tells a complex story that contradicts the simple narrative of one product cannibalizing the other. Interstate poker compacts in 2025 have driven commercial gaming revenue from online poker to $72.3 billion in the first quarter alone, marking a 19.6% year-over-year increase according to Deuces Cracked’s US Online Poker Market Update. This growth occurred alongside sports betting’s expansion to capture 48% of the online gambling market share.
The Numbers Tell Multiple Stories
Peak-time poker traffic grew by 78% compared to pre-2025 levels following interstate compact expansions. New account registrations for poker platforms increased by 45% during the same period. These figures contradict assumptions about poker’s demise in the face of sports betting dominance. Future Market Insights projects the entire online gambling market will grow from $105.5 billion in 2025 to $286.4 billion by 2035, representing a 10.5% compound annual growth rate across all verticals.
Sports betting generates different revenue patterns than poker. New York sportsbooks brought in $194 million in September 2025, though this represented a 5.4% year-over-year decline according to Poker Industry Pro’s Market Monitor. Nevada’s regulated market demonstrates the revenue disparity between the two products: poker rooms generated $142 million in 2024 while sportsbooks produced $482 million. Yet this gap doesn’t necessarily indicate substitution effects.
Regional Market Variations Paint Different Pictures
Markets across different regions show contrasting patterns between sports betting and poker participation. Nevada’s regulated market saw poker rooms generate $142 million in 2024 while sportsbooks brought in $482 million. Yet Michigan reports 23% growth in poker revenue alongside sports betting expansion.
States with established poker markets, like New Jersey, maintain stable poker revenues even as sports betting dominates advertising spend. Meanwhile, players playing poker games online in Pennsylvania increased by 31% after interstate compact agreements, while unregulated offshore sites, daily fantasy sports platforms, and casino games compete for the same player pools.
The data suggests market segmentation rather than direct substitution. Poker operators report their player demographics skew older with higher lifetime values, while sports bettors tend toward younger demographics with more frequent but smaller transactions. Cross-platform operators note only 18% of their sports bettors try poker products, indicating limited overlap between the two player bases.
Conflicting Signals from International Markets
InfoPlay’s DGOJ Data Summary for Q2 2025 reported a 33.24% drop in live betting compared to Q1 2025, though the report doesn’t isolate poker performance from other live betting formats. The headline references a poker collapse, but the available data focuses on aggregate live betting metrics. This Spanish market data contrasts sharply with US market performance during the same period.
Custom Market Insights valued the Global Online Poker Games Market at $6.27 billion in 2025. Business Wire’s Online Gambling Industry Report projects the global online gambling market will reach $185.17 billion by 2033 from $95.3 billion in 2024, growing at 7.66% annually. These projections segment the market into sports betting, casinos, bingo, poker, and others without providing comparative growth rates between verticals.
The Unregulated Market Factor
The American Gaming Association estimates illegal poker sites capture approximately 31% of the total US online poker market in 2025. This represents billions in revenue operating outside regulated frameworks, unaffected by legal sports betting expansion. Offshore operators continue serving US players through cryptocurrency transactions and alternative payment methods, making accurate market assessment difficult.
Regulated poker operators face competition from unregulated sites offering higher prize pools, looser game restrictions, and anonymous play options. These platforms operate independently of US sports betting market dynamics. Some poker professionals maintain accounts on both regulated and unregulated platforms, splitting their play volume based on tournament schedules and cash game traffic.
Operator Strategies Reveal Market Realities
Gaming companies allocate marketing budgets based on customer acquisition costs and lifetime values. Sports betting advertising dominates television and online media, with operators spending billions on promotional offers. Poker marketing remains targeted toward existing player databases and affiliate partnerships. This disparity in marketing spend affects public perception of each product’s health more than actual player participation rates.
Multi-product operators report different retention patterns between sports bettors and poker players. Sports bettors churn at higher rates, requiring constant promotional spending to maintain active player counts. Poker players demonstrate longer session times and higher monthly deposit averages once established on a platform. These behavioral differences shape operator priorities and resource allocation.
What the Data Actually Shows
The available evidence doesn’t support a straightforward narrative of sports betting killing online poker. Interstate compacts have reinvigorated US poker markets by creating larger player pools and bigger tournament guarantees. Average tournament guarantees doubled to $750,000 for Sunday majors, according to market reports. Simultaneous sports betting growth appears to expand the overall gambling market rather than simply redistributing existing players.
Market analysts point to different use cases for each product. Sports betting ties to live sporting events, creating peaks around major games and seasons. Poker maintains consistent traffic patterns throughout the year, with players logging regular sessions regardless of external events. This complementary relationship allows operators to maximize platform utilization across different time periods.
The question of causation remains unsettled. Sports betting’s marketing dominance and regulatory priority have certainly affected poker’s growth trajectory. Yet poker’s recent revenue increases following interstate compacts suggest the product maintains its own growth potential when given proper market conditions. Both products face competition from casino games, daily fantasy sports, and emerging gambling formats that may affect their market shares more than they affect each other.
Conclusion
The broader data makes it clear that sports betting is not causing a decline in online poker. While both industries compete within the wider gambling market, they serve different player demographics, operate on different engagement cycles, and thrive under different conditions. Interstate compacts have significantly boosted poker’s liquidity and prize pools, while sports betting continues expanding through promotional spending and media visibility. Rather than cannibalizing one another, both verticals appear to be evolving in parallel, contributing to overall market growth. As regulations expand and operators refine their product strategies, poker remains well-positioned to sustain long-term stability—even as sports betting draws the spotlight.
FAQ
Is sports betting reducing the number of online poker players?
No. Poker participation is increasing in several states, especially after interstate compact expansions.
Do sports bettors also play poker?
Only about 18% of sports bettors try poker, showing the customer bases have limited overlap.
Why does sports betting get more advertising than poker?
Because sportsbooks have higher churn rates and require constant promotions, while poker players are more loyal and have higher lifetime value.
Are offshore poker sites affecting regulated markets?
Yes. Around 31% of US poker activity still occurs on unregulated sites, which operate outside sports betting dynamics.
Which generates more money: poker or sports betting?
Sports betting generates more total revenue, but poker players tend to have higher retention and longer sessions.
