Battle for Leisure Time: Online Gambling Increasingly Displaces Traditional Video Games

The entertainment industry is undergoing a massive transformation as the boundaries between gaming and gambling continue to blur. Young adults are picking up their console controllers less frequently, spending more time on sports betting or online casinos instead. A recent report by Matthew Ball, titled State of Video Gaming in 2026, illustrates that player attention is a finite resource for which two powerful industries are now directly competing. Although the reach of video games remains immense at 92 percent among the 18- to 45-year-old demographic, the intensity of usage is noticeably declining.

The report draws partly on an Ipsos survey conducted on January 13 and 14, 2026. In this survey, 59 out of every 100 Americans in this age group stated they play video games less often than they once did. This decline does not necessarily signify the end of the hobby, but rather a shift in priorities within a limited time and entertainment budget. When a player is faced with the choice on a Friday night between starting a new mission in an RPG or placing live bets on a football match, the smartphone app is increasingly winning the battle.

Numbers and facts

The development is particularly clear when looking at the demographic group of men aged 18 to 34. While they make up only 15 percent of the adult US population, they are the driving force behind the growth of the iGaming sector. According to Ipsos Consumer Tracker data, these men are 2.6 times as likely to play iGaming titles several times a week or daily compared to the average citizen. For sports betting, the likelihood is even 3.3 times higher. Simultaneously, these individuals are also twice as likely to be active console or PC gamers. Thus, gambling is directly encroaching on the core gaming audience.

The financial dimensions of this shift are staggering. While annual spending on video game content in the US remained nearly flat from 2021 to 2025 (a slight dip from $52.49 billion to $52.30 billion), combined spending on services like OnlyFans, sports betting, and iGaming exploded from $11.3 billion to $32.8 billion during the same period. Globally, legal gambling markets generated $54 billion in gross gaming revenue (GGR) in 2025, equivalent to roughly 45 percent of worldwide spending on video games. For comparison, this figure stood at just $11 billion in 2019.

Background

Competition now takes place on a minute-by-minute basis. While a player waits in a multiplayer shooter lobby for the next round to start, a notification for live odds pops up on their smartphone. Furthermore, the mechanics and design of modern slots are becoming increasingly similar to mobile video games, facilitating the transition for young users. Matthew Ball points out that user interfaces often feel identical, yet the use of real money fundamentally changes the risk. Many publishers react to this pressure by increasingly relying on chance-based monetization like loot boxes, which draws significant legal criticism.

"Console gaming isn’t disappearing. Ball is describing smaller transfers repeated across millions of people: a shortened session here, a skipped purchase there." - Matthew Ball, author of the State of Video Gaming in 2026 report

Why it matters for German players

In Germany, this trend is strictly regulated by the Interstate Treaty on Gambling 2021 (GlüStV 2021). While US players often operate in less controlled environments, German legislation provides a clear framework through the Gemeinsame Glücksspielbehörde der Länder (GGL). German players are subject to a cross-operator deposit limit of 1,000 euros per month, monitored via the LUGAS system. Additionally, a stake limit of a maximum of 1 euro per spin applies to online slots. These rules serve player protection and are intended to prevent the budget shift described by Matthew Ball from leading to financial overextension. A study by Michael Auer and Mark D. Griffiths also shows that German players spend significantly less in international comparison. The median loss in Germany was only 15 euros, whereas much higher sums were wagered in the US and Canada. This highlights the effectiveness of German regulation compared to more liberal markets.

What it means for GGL-licensed casinos

For providers with a GGL license, competition from video games means they must prioritize quality and integrity. German platforms are not only fighting against illegal MGA or Curacao providers but also for the time that users would otherwise invest in FIFA or Call of Duty. Due to strict requirements regarding advertising times and the separation of sports betting and casino games on the same domain, licensed providers must convince users through technological innovation and safety. The fact that esports bettors are scientifically proven to be more prone to problematic gambling behavior obligates GGL casinos to strictly adhere to early detection systems.