Global Online Gambling Market to Reach $66.99 Billion by 2025
The global online gambling market was valued at a whopping $44.3 billion in 2019 and is projected to grow by a further 7.13% by 2025. The recent trend represents a drastic increase in online gambling over the past years.
According to the American Gaming Association (AGA), the industry will grow to $66.99 billion within the next five years. The AGA estimated there are as many as 2800 active sites offering games, including poker, bingo, and lottery, as of 2018.
Why has the Online Gambling Industry Grown?
There are several reasons the global online gambling industry has grown, and why these projections seem likely for the future.
Technology Accelerated the Industry
Firstly, this is due to improved technology. Increased use of smartphones, coupled with the fast penetration of efficient internet connections across countries, is providing easy access to various online gambling platforms. The growing number of cost-effective smartphone applications to play various online gambling also contributes to the industry growth of online gambling.
With companies providing a freemium model to their users, the number of people engaged in multiple online gaming types is increasing at a considerable rate. Inevitably, it has boosted the growth of the world’s online gambling market.
Furthermore, the growth of sports betting, along with other digital gambling ads, is further enticing people to try online gambling. This too has a positive impact on market growth.
Ever-Growing Partnerships Aided Growth
Another understandable reason for the continuous growth of the online gambling industry is an increasing partnership trend. There have been constant collaborations among market leaders, enabling their reach to expand beyond borders. This ever-growing trend will continue to contribute to the growth of the global internet gambling industry until the end of the projected period.
We can see examples of such collaborations when looking back over the past year. For example, in July 2020, Pariplay collaborated with Grand Casino Baden to land in Switzerland’s iGaming market. Another company, Greentube, has also lately inked a deal with Casino Gran Madrid Online, the leading operator in Spain. Kambi Group Plc has also forged a multi-year alliance with BetAmerica to serve as its technology and service provider.
Playzido, which is a B2B gaming platform, also signed a deal with DreamTech Gaming in order to absorb the latter’s ever-growing portfolio of high-performance casino games. In addition, online casino and sportsbook BetzestT has joined hands with Fortune Factory StudiosT, another casino provider, in order to become a more formidable entity.
These merges are just a few that we have seen in the past year, and it is predicted that similar collaborations in coming years will give the online gambling industry a further boost.
COVID-19 Increased Business
The coronavirus pandemic has surprisingly led to a drastic increase in the revenues of the online gambling market. Google Trend claims that gambling has moved online following the closure of land-based gambling venues coupled with the suspension of many sports events.
According to a joint study by the Australian Credit Bureau Illion and analytics firm AlphaBeta, there has been a 67% increase in online gambling during the first week of April alone. Furthermore, according to the US-facing online social poker room Global Poker, there has been a 43% rise in the use of online poker sites in the US since mid-March. In addition to this, a 255% increase in first-time poker players was observed.
Similarly, in the United Kingdom, online casino searches were recorded an all-time high since the lockdown was enforced. These numbers clearly indicate that internet gambling has come out as one of the biggest winners during the pandemic-led shutdowns.
However, revenue growth is subject to the regulation of certain online gambling services across different countries. For instance, though sports betting is allowed in Australia, online gambling and poker are banned under the Interactive Gambling Act.
Leading market players in the world’s online gambling industry include WHG (International) Ltd, GVC Holdings PLC, Flutter Entertainment plc, BETTSSON AB (publ), Greentube Internet Entertainment Solutions GmbH, Soft2Bet, the 888 Group, BetAmerica, Playzido Ltd., IGT, bet365, Scientific Games, Kindred Group plc, Playtech, and Betway Limited.