Online Gambling Market - Forecasts from 2020 to 2025

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. 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 offer games and activities such as poker, lottery, and bingo, as of 2018. Growing adoption of smartphones coupled with rapid penetration of better internet connectivity across various regions/countries is supporting the easy access to various online gambling platforms. With companies offering freemium model to their customers, the number of people engaged in various types of online gambling is rising at a considerable rate which, in turn, is boosting the growth of global online gambling market.

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. Ease of sports betting using a portable connected device such as smartphone, laptop, and tablet has increased the number of players in the online gambling industry. Moreover, proliferation of sports betting along with other online gambling ads is further attracting people to try online gambling, thus positively impacting the market growth during the forecast period. Online agencies, third-part ad servers, and networks and exchanges are used to advertise gambling websites of various companies. Online gambling service providers enter into agreements with individual customers or players to offer betting services for real money which is attracting more and more gamers.

Online gambling industry has a very wide range of regulatory frameworks in place which attributes largely to the market size, the number of participants, and the level of illegal gambling. Legislation for online gambling ranges from to licensed markets that are fully open to commercial operators to explicitly prohibited and banned. Tax rates, online penetration, and other regulatory requirements are vary widely across geographic regions. With legislation continues to evolve, the regulated markets has a serious impact of increasing costs and barriers to entry which includes consumer protection initiatives and rising gambling taxes. By far, the United Kingdom is the largest regulated online gambling market for many online operators. Other sizeable regulated markets include Sweden, Spain, Italy, and Australia.

However, many countries prohibit the online gambling industry which is hampering the growth of the global online gambling market. Countries where online gambling is illegal include Singapore, the United Arab Emirates (UAE), North Korea, India, and Qatar. In Russia, online gambling is completely banned except for interactive gambling which includes simulators of slots machines, card games, and casino games. Moreover, countries, where online gambling is allowed, have restricted and stringent regulations which further erodes the growth of this overall online gambling market.

Increasing number of partnerships

The online gambling industry is witnessing a constant partnerships and collaborations among market players so as to expand their reach across the globe which will continue to bolster the growth of global online gambling market till the end of the forecast period. Recently in July 2020, Pariplay has partnered with Grand Casino Baden and entered Switzerland’s iGaming space. This partnership allows the company to expand its footprints to this newly regulated market, following recent moves in Romania and Portugal. Greentube, the NOVOMATIC Interactive division, has also recently signed a distribution deal with the leading operator in Spain- Casino Gran Madrid Online- in order to extend its footprint in the country. Kambi Group plc has recently signed a multi-year agreement in August 2020 with BetAmerica, a subsidiary of Churchill Downs Incorporated (CDI), to become the sportsbook technology and service provider to the sports betting brand. BetAmerica sportsbooks are currently available in Indiana, Pennsylvania, New Jersey, and Mississippi. BonusFinder.com has been granted an affiliate license to operate in Tennessee after the sports betting law entered into force in this U.S. state in 2019, expanding further in the burgeoning U.S. online gambling market. BonusFinder.com currently holds licences in six U.S. states including West Virginia, Pennsylvania, Indiana, and Colorado. Soft2Bet, the casino platform provider, has recently unveiled Irokobet which is an innovative casino and sportsbook brand. This product offers customers a unique selection of engaging casino games, live casino options, and a whole new experience for its players based in New Zealand and several African markets. Playzido, a B2B gaming platform, signed a partnership agreement with DreamTech Gaming. This partnership incorporates the latter’s rapidly growing portfolio of high-performance casino games onto the Playzido platform. Online Casino and Sportsbook Betzest™ has partnered with casino provider Fortune Factory Studios™ in order to increase its offering. This partnership includes the latter’s full collection of games including Aliyas Wishes, Romanov Riches, and Village People Macho Moves.

Europe holds a significant share in the global online gambling market

By geography, the global online gambling market has been segmented into five major regional markets- North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). Europe accounted for a substantial share in the global online gambling market in 2019 and will remain at its position till the end of the forecast period. Online gambling is legal in many European countries which supports the growth of online gambling market in this region. In the United Kingdom, for example, online gambling is legalized on account of safe practices with strict regulations laid down by the British government. Asia Pacific (APAC) online gambling market is projected to register the highest compound annual growth rate owing to the booming adoption of smartphones and internet penetration with younger population inclined towards online gambling services. In New Zealand, the government encouraged TAB and NZ Lotto for offering a collection of services while growing their gaming portfolio. In October 2019, the government of Malaysia announced its plans to implement better online gaming legislation and is looking forward to amend the country’s laws on the gambling industry to include the online segment.

North America is also a growing online gambling market and is projected to witness a decent growth during the forecast period. Several U.S. states such as Pennsylvania, New Jersey, West Virginia, Nevada, and Delaware offer legal online gambling- online casino, online poker, and online sports betting. The Michigan governor signed legislation to legalize online gambling in the state on December 20, 2019. The first retail sportsbooks in Michigan went live in March 2020 with online platforms expected to enter the fold as early as October 2020. In Canada, though it is illegal to operate online casinos within the country, players are allowed to gamble at sites located offshore where they can be legally registered to operate. Also, some online casinos in Canada are legal and managed by local governments to generate funding.

COVID-19 accelerated the growth of global online gambling market

The recent COVID-19 pandemic has led to a sudden rise in the revenues of online gambling service providers, thus positively impacting the overall market growth. According to Google Trends, gambling has moved online amid the closure of physical gambling venues coupled with cancellation of various sports events and tournaments. In Australia, the joint study by Australian Credit Bureau Illion and analytics firm AlphaBeta has reported a 67 per cent rise in online gambling during the first week of April alone, based on a sample of transactions made by 250,000 Australian consumers, following the recent shutdown of all non-essential services due to coronavirus. The figures show that the online gambling has emerged as one of the biggest winners during the shutdown alongside services such as online retail, food delivery, and subscription services. Similarly, the US-facing online social poker room Global Poker revealed a 43 increase in the use of online poker sites in America since the nationwide lockdown and social distancing measures took effect. In conjunction to this, a 255 per cent increase in first-time poker players was witnessed, enjoying poker either live, online, or with friends, on a regular basis. In the United Kingdom as well, search interest in online casinos has also hit an all-time high since the beginning of lockdown. However, this increase in revenue is subject to the legalization of certain online gambling services across various countries. For example, although sports betting and wagering is permitted in Australia, online casino gaming and poker are strictly prohibited under the Interactive Gambling Act.

Competitive Insights

Prominent key market players in the global online gambling market include WHG (International) Ltd, Flutter Entertainment plc, BETSSON AB (publ), GVC Holdings PLC, Greentube Internet Entertainment Solutions GmbH, BetAmerica, Soft2Bet, the 888 Group, Playzido Ltd., IGT, Scientific Games, bet365, Playtech, Kindred Group plc, and Betway Limited. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global online gambling market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.

Segmentation

By Game Type

• Sports Betting
• Casino
• Lottery
• Others

By Platform

• Desktop
• Mobile

By Geography

• North America
• United States
• Canada
• South America
• Brazil
• Peru
• Argentina
• Europe
• The United Kingdom
• Germany
• Spain
• Italy
• France
• Others
• Middle East and Africa
• Saudi Arabia
• South Africa
• Others
• Asia Pacific
• Japan
• China
• Australia
• Others