The global online gambling market size was valued at USD 57 billion in 2021. It is estimated to reach USD 153 billion by 2030, growing at a CAGR of 11.7% during the forecast period (2022–2030).
The wide availability of cost-effective mobile applications across the globe for online gambling and betting is expected to propel market growth over the forecast period. The growing internet penetration is also likely to drive the use of online gambling platforms across the globe. This contributes to increased investments in online gambling platforms and the number of live casinos worldwide. Furthermore, the growing popularity of the freemium model is expected to fuel market growth over the forecast period.
|Market Size||USD 153 billion by 2030|
|Fastest Growing Market||Asia-Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The increasing investments in the online gambling market can be primarily credited to the rising demand for cost-effective payment mechanisms. Another crucial factor favoring investments in online gambling is the introduction of virtual and augmented reality. There are enormous investment opportunities in the market which has influenced professional players to invest in sports betting and stocks of some of the critical online gambling companies. Various new entrants and investors are reaching out to stakeholders in the online gambling market, including operators, suppliers, regulators, and industry-focused legal/ financial advisors.
The continuous technological advancements are also favoring market expansion to a great extent. Significant developments include commercial models such as virtual currency and social casinos, game formats, in-play sports wagering, and mobile geolocation. Investments are being made in AI-based facial recognition software and cryptocurrency. Moreover, market players' growing proclivity toward Virtual Reality (VR) to provide real-life gaming experiences will positively influence the market space. For instance, in 2021, prominent sports betting and gaming entertainment company Entain launched the first ever VR-based multi-sports entertainment. The company has developed this new offering in collaboration with Verizon Media.
A growing consumer preference for online live casinos over conventional land-based casinos across various countries that have legalized offline and online gambling is strongly favoring market growth. The shifting of players from offline to online gambling has created lucrative growth prospects for online casino operators. Numerous professional players prefer live casinos as they help them track their moves. Besides, they also offer games in real-time with live dealers, a live chat feature, and games that can be played anytime and anywhere.
The emergence of live casinos based on advanced technologies is expected to fuel market growth over the forecast period. In 2021, Evolution launched its third live casino studio in Michigan as a part of its business expansion strategy amid the fast development of the US iGaming industry. According to the company, the live casino studio offers a modern B2B live casino solution to multiple operators seeking to provide an enhanced live casino gaming experience to online players on smartphones, desktops, and tablets.
Live casinos are also becoming popular as they do not require real money while gambling, allowing inexperienced players to participate without fear of losing money. Owing to these benefits, the number of live casinos is increasing rapidly, creating remunerative opportunities for the online gambling market over the forecast period.
The promising growth prospects for online gambling have lured cybercriminals who use bots to target money transferred through various payment gateways, including electronic checks, wire transfers, and credit cards. As a result, the market players are taking profound steps to resolve these issues by creating awareness among users and urging them to use anti-virus software on their smartphones and PCs. Moreover, companies use third-party applications to protect their websites and facilitate secure online payment transactions. Federal law restricts the usage of wire communication facilities in gambling activities or sports betting as the facility includes the internet. However, the internet enables players to keep an anonymous identity and immediate exit from gambling sites, which makes it difficult to trace the gambling activity.
Online gambling also involves the risk of app-based hacking. For instance, live casino mobile apps are easy to manipulate and intercept through shared Wi-Fi and 4G signals. Moreover, cybercriminals can also manage the apps by publishing fake editions containing malware. Nowadays, several casinos use the standard 128-bit encryption and keep a remote backup of their customer data. As a result, the data would be secure even if the site is challenged by a Denial-of-Service (DoS) attack.
Payment solutions are now more readily available to consumers and online players because of the increasing acceptance of mobile and online payment platforms. The online gaming business accepts online payment as a secure and safe transaction method. The market for online gaming is expanding as a result of this issue. The online sports category primarily drives the growth of the online betting market, particularly for football competitions like the FIFA World Cup and the European Championships. As part of their marketing strategies, many online sports betting companies sponsor other teams by acquiring or merging with other businesses for tactical expansions.
DraftKings Inc. and Golden Nugget Online Gaming Inc. signed a legally binding agreement in August 2021, following which DraftKings bought Golden Nugget Online Gaming in an all-stock deal. With the acquisition, DraftKings could take advantage of the established customer database of more than 5 million people and the well-known brand (iGaming) experience of Golden Nugget. Such instances create immense potential for market growth.
By region, the global online gambling market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Europe accounts for the largest market share and is estimated to grow at a CAGR of 12% over the forecast period. Legalizing gambling in several European nations, notably Italy, Malta, France, Spain, and Germany, is responsible for the development. High-speed internet accessibility, the growing appeal of online casinos, and the expanding use of smartphones are other factors contributing to the market's rise. Additionally, businesses can now advertise their gambling websites because of the Gambling Act 2005 that the UKGC (UK Gambling Commission) implemented. This helps to grow the market in the area.
Asia-Pacific is estimated to account for USD 50 billion by 2030, growing at a CAGR of 12.8%. The growth is attributable to the rising usage of internet services and the relaxation of regulations governing online gaming and betting. The growing popularity of Esports and other sporting events has also fueled the market. Due to technological developments in the gaming sector, high-speed networks, and accessible and affordable internet data, India and China are entering the market. Furthermore, the use of cryptocurrencies for gaming has expanded due to the popularity of bitcoins. The strong economic growth and rising spending on leisure activities will also likely drive the market.
North America is the third largest region. Only bookmakers with licenses from Nevada, Pennsylvania, or New Jersey can operate lawfully under the current online gambling legislation in the United States because these are the only three states with online gambling regulations. The biggest and fourth-largest state to authorize and control online gambling is Pennsylvania. New Jersey has many internet casinos, sportsbooks, and sports betting applications. The Division of Gaming Enforcement in New Jersey supervises and controls the state's online gaming platforms. It manages site licensing, tax revenue collection, and the testing and approval of games. The biggest market in the US for legalized internet gambling is New Jersey. In terms of online gambling, Canada is mostly uncontrolled. Simultaneously, Mexico evaluates its gambling regulations to harmonize them with the country's overall gambling industry. Therefore, it is anticipated that the market will continue to grow as online gambling becomes more mainstream in North America.
The global online gambling market is segmented by type, device, and region.
Type-wise, the global online gambling market is segmented into Sports Betting, Casinos, Poker, Bingo, and Others.
The Sports Betting segment accounts for the largest market share and is estimated to grow at a CAGR of 12.5% over the forecast period. The use of smartphones and computers for efficiently placing bets on sports is driving the growth of the sports betting segment. The proliferation of sports betting ads globally is expected to drive segment growth over the forecast period. Sports betting platforms are witnessing increased adoption of technologies such as machine learning, Artificial Intelligence (AI), virtual reality, and blockchain. Machine learning has emerged as the most adopted technology in the sports betting market as it helps improve betting prediction and, subsequently, betting efficiency.
Casinos are the second largest segment. The increasing popularity of social gambling and gambling apps is the primary factor driving the segment. Moreover, the growing adoption of mobile devices globally encourages vendors to focus on developing social gambling games. The segment growth can also be attributed to the increased spending capability of the global population on gambling. The increasing sales of smartphones across the globe are also encouraging vendors to offer casino games through online platforms.
Device-wise, the global online gambling market is segmented into Desktop, Mobile, and Others.
The Desktop segment accounts for the largest market share and is estimated to grow at a CAGR of 11.4% over the forecast period. Many users prefer using desktops for betting as installing and downloading casino software proves simpler on desktops. This is anticipated to fuel the growth of the desktop segment. Furthermore, easy access, the device's user-friendly interface, and navigation between games encourage gamblers to choose a desktop.
The Mobile segment is the second largest. Software providers and operators emphasize delivering mobile-friendly interfaces and apps owing to the high adoption rate of mobile devices across the globe. Mobile devices offer a better experience at relatively lower costs. Marketing through mobile advertising is the most effective mode of communication, as it has higher market penetration. Online mobile gambling offers players an opportunity to play anytime and from anywhere.
Additionally, rapid technological advancements in mobile devices are expected to offer improved gaming experiences to users. High penetration and adoption of internet devices and smartphones are driving the growth of the mobile device segment in the online gambling market. Asia-Pacific, North America, and Europe are witnessing a considerably high adoption rate of smartphones, exponentially increasing the market potential of online mobile gambling.