Compound Annual Growth Rate of 12 Percent Projected
A recent forecast report by Straits Research projects a compound annual growth rate (CAGR) of 12 percent until 2029 for the global online gambling market, driven by advances in technology, rising digitization and smartphone adoption, legalization of gambling, and the effects of Covid-19.
The global market size of online betting on sports, casino gaming, poker, and bingo as of 2019 is estimated at $51.8 billion and is expected to reach a value of $92.9 billion by 2023, and to grow further to $139 billion by 2029.
Major Drivers of Market Growth
The increasing penetration of smartphones and internet coverage around the world has been leading to more and more people choosing to play blackjack online or other casino and betting games, serving as one of the major drivers for online gambling market growth globally.
According to data from the 2020 Mobile Economy Report by the GSM Association, 49 percent of the world’s population, or 3.8 billion people, used mobile internet access in 2019. By the year of 2025, the number of mobile data users is expected to reach 5 billion or 61 percent of the population.
As per the same report, smartphone penetration is estimated at 65 percent for 2019 and is forecasted to grow to 80 percent by 2025.
The digitization of payments and the advance of fintech, combined with a growing trust towards making payments online, have led to an increased ease of depositing and betting real money on gambling and betting platforms. A good example is provided by one popular digital payments platform, ‘Easy Payment Gateway’, which reports a 10 percent increase of processed transaction volumes from the online gambling sector.
Other technological developments and innovations, including Artificial Intelligence, Machine Learning, Virtual Reality, and Augmented Reality, have completely transformed gaming experience making it more immersive and attractive.
Modern online gambling and betting is offering great convenience and easy access from anywhere around the globe, providing sound value for money and a wide variety of game titles and bet markets for any wager sizes. Digital platforms also have a vast availability of free games, bonuses, and loyalty programs and as a rule offer numerous deposit and withdrawal options.
The lockdowns and the stay-at-home restrictions brought by the Covid-19 pandemic to almost all parts of the world served to catalyze the already existing trends and resulted in adoption spikes for all types of online entertainment activities, including gambling and betting over the internet.
Europe will Keep its Domination over the Forecast Period, while Asia-Pacific will Display the Largest Growth
The breakdown by regions of the global online gambling and betting market in the report by Straits Research shows that Europe will keep its dominant position over the forecast period. Notably, the Asia-Pacific region will be the one to display the largest market growth until 2029.
The legalized status of online gambling in the majority of European countries, including the UK, Sweden, Denmark, Italy, Germany, Spain, and Malta, together with the high popularity of online gaming and sports betting across the continent, has secured a dominant position on the global market for Europe which will be preserved during the projected period.
The availability of a great number of casino and online gambling and betting operators like William Hill, Bet365 Group Ltd, Paddy Power Betfair PLC, Betsson AB, Ladbrokes Coral Group PLC, 888 Holdings PLC, Sky Betting and Gaming, Kindred Group PLC, and GVC Holdings PLC is aiding the trend.
Another positive role has been played by the support from the European Commission to the efforts of EU member states to modernize their legal frameworks related to online gambling and to achieve greater administrative cooperation between the gambling regulatory bodies of the different jurisdictions.
The online gambling market in the Asia-Pacific region is projected to display the fastest rate of growth during the forecast period due to a number of factors. These include the growing internet connectivity and smartphone penetration, the increasing spending power of the population, and the rising adoption of digital payments, and the general lack of land-based casinos.
The legalization of gambling in a number of countries, including the Philippines, Japan, and Taiwan, is stimulating the growth of the market, while the efforts of locations like Macau and Singapore to become gambling hotspots have made them surpass Las Vegas in revenues years ago.