The global online gambling market is projected to grow at a CAGR of 11.94%, during the forecast period (2020 – 2025).
It grew at a CAGR of around 12% during 2014-2019 and it is expected to continue its strong growth during the next five years according to recent reports.
The global online gambling market was valued at US$44.317 billion in 2019 and is expected to grow at a CAGR of 7.13% over the forecast period to reach a total market size of US$66.994 billion in 2025 including online casinos Japan.
- Online betting is the fastest-growing segment during the forecast period. Artificial intelligence, Chabot, and machine learning have taken over the market. The rise in the number of the female population in casinos and the convenience of the cashless mode of payment during gaming are likely to boost the online gambling market, during the forecast period.
- Convenient access to online casinos through mobile phones is also creating a positive impact on the market. The Increasing number of cost-effective mobile applications to play different online gambling games on smartphones is also contributing to the market growth of online gambling worldwide. The ease of sports betting through the use of a portable connected device has increased the number of players in the online gambling industry.
- The pandemic posed a positive impact on the market as consumers turned more towards the online platform to bridge their financial, social, and psychological crisis during lockdowns
- One of the key factors driving the growth of the market is the increasing penetration of the internet across the globe, along with the spread of urbanization. Furthermore, legalization and cultural approval of online betting in various developed countries are also providing a boost to the market growth. For instance, the ever-growing popularity of betting across different regions around the globe is significantly driving the global online gambling market. According to the American Gaming Association (AGA), around 2,800 sites are active online, and they offer lots of games and activities such as poker, lottery, and bingo, as of 2018.
- Another growth-inducing factor for the online gambling market is the availability of various technological advancements, such as the development of virtual reality (VR) and blockchain tools. These technologies aid in maintaining the transparency of gambling activities and provide an immersive experience to the player.
- Other factors, including increasing expenditure capacities of the consumers, along with the advent of bitcoin gambling, are expected to drive the market further. thus, positively impacting market growth during the forecast period.
Key Market Trends
Football Betting Holds a Prominent Share
The online betting segment is predominantly applied in the sports category, especially in football events, such as FIFA World Cup and European Championships. Many of the online sports betting companies are sponsoring different teams as a part of their marketing initiatives and strategic expansions.
North America Remains the Fastest Growing Region
The North American continent has more gambling establishments than any other continent. Of course, this is mainly due to the over one thousand casinos in the United States. As for other North American countries where gambling activities are permitted by law, they are Mexico and Canada. Thus, in North America, there are more than one thousand commercial gambling establishments, and they generate about twenty-nine billion dollars in revenue every year. The most popular options at gambling establishments are roulette, poker, craps, blackjack, and racing. Other popular activities include raffles, lotteries, and pari-mutuel wagering, which is legal in all the Canadian provinces and forty-three American states.
As for the online gambling market in the region, the sports betting segment has been dominating the market due to the growing utilization of digital platforms.
The key players in the online gambling market are providing similar or almost identical services and products, leading to fierce competition with a heavy focus on pricing and marketing activities.
Forecasts for 2025: Future leaders and Trends
The United States and China will most likely remain market leaders. However, countries from other regions will also be able to compete with them. The demand for gambling is growing steadily in different Asian countries and other regions as well. There has been a certain easing in terms of regulations: more and more states are legalizing virtual gambling and betting.
Further, some European countries are also expected to improve their performance in this regard due to the constant development in the field of technologies. Operators in this region are already developing more and more innovative products, and this applies not only to video slots, for instance, but also to such areas as VR-gambling.
Finally, the African region seems incredibly promising at the moment. However, given that virtual gambling is not regulated in most states of the continent, it will be a long time before its potential is fully revealed. If nevertheless, a few important points are successfully worked out, the countries of the African region will have incredible results by 2025.
As for the main trends in 2025, they are forecasted to be:
The number of players who visit virtual gambling establishments utilizing mobile devices is increasing every year. This is only possible because such devices are becoming more functional and affordable. An important role in the spread of mobile gambling is the improvement of the quality of Internet coverage in several regions of the world.
Wide Usage of Cryptocurrencies
Cryptocurrency has developed a wide reach into different regions of the world and will only continue to spread, most especially in the gambling industry and in various areas of business. For users of virtual casinos, the ability to deposit and withdraw money in cryptocurrency provides anonymity and security. This will determine the future popularity of the method.
According to numerous experts, players around the world will increasingly prefer live casinos due to the combination of the atmosphere of a traditional gambling establishment and accessibility. Another important factor that makes this type of gambling even more popular for users is the presence of a live dealer in the game.
New Board Games
Operators of land-based gambling establishments have come up with a plan that will prevent their segment from gradually being supplanted by the virtual casino industry and also try to make the user experience more interactive. The introduction of new board games might become a great solution
The Most Important Features of the Gaming Industry Development
For a long time, the gaming market around the world has been the largest segment of the global digital content market and still is. Annually, it generates multi-billion-dollar revenue and attracts a huge audience. Thus, according to study reports, in 2020, the global market will be able to generate revenues of 159.3 billion dollars, and most gamers will be from the Asia-Pacific region.
As for the Largest Online Gaming Markets in the World, They Are:
- The United States
- South Korea.
- The United Kingdom
Other Notable Market Features
To better understand the online gambling industry, it is also worth considering the age and gender divide of all gamers. For instance, in the United States, which is the second-largest gaming market, people in the age bracket f eighteen to thirty-five years old make up the majority of the gamers in the country.
At the moment, female players make up forty-six percent of all gamers in the US, but it is forcasted to get to seventy percent by 2025.