Global Online Gambling Market Report 2022
Global Online Gambling Market Report 2022
In 2020, the value of the global online market was estimated to be US$65.316 billion, but experts predict that this figure will be close to double over a period of seven years. If a CAGR of 10.11% is applied over the forecast period, it is highly likely that the market size will be US$128.154 billion in 2027. One of the greatest factor that is expected to fuel this growth is the rise in popularity of different gambling types.
The research and development teams of the various gambling operators are coming up with gaming solutions that align with the needs of their customers. Let us face it; the casino player we see now is young and accomplished, unlike the picture that was painted of gamblers a few decades ago. To keep up with the pace at which the world is evolving there is a need to give the customer what they want; otherwise, they will jump ship.
Although some corners of the globe are experiencing an easy time with regulation, the general scenario is that the gambling market is growing. Betting customers across the board have demonstrated a preference for online gambling to the advantage of investors. According to reports published by the American Gambling Association (AGA), there were more than 2,800 internet gambling sites that ran active operations in 2018. Some of the offerings that are available on such sites include bingo games, poker games, and lotteries.
There has been a significant uptake of smartphones over the last couple of years and coupled with rapid penetration of high-speed internet connections in regions across the world, people are finding it convenient to place their bets online. Most gambling brands that have land-based operations also have a website so players still feel connected to their favorite providers even if they do not walk into their betting lounges. This is the wave that has swept over the gambling industry and is dominant in most parts of the world.
This is for sure an environment that many companies would want to set up for the assured benefit; this explains the high levels of competition in the market. To lure and retain customers to play on their sites, companies often offer freebies, bonuses, and promotions to guarantee value for those who register with them. It is no secret that the just conclude pandemic caused a shift in the manner in which human interactions are conducted. There is an increase in the number of people engaging in online gambling and this in turn has caused remarkable growth in the global online gambling market.
With an increase in the number, low-cost, and effective mobile applications that offer convenient gambling options for smartphone owners, the growth of the worldwide online gambling market is inevitable. Making sports betting so easy by way of connecting to a betting platform through a portable device like a laptop, tablet, and smartphone have been instrumental in increasing the number of lottery players in the online gambling industry.
Moreover, the proliferation of sports betting together with other online gambling ads is further enticing people to try online gambling, and hence positively impacting the market growth over the forecast period. Marketing of gambling services and providers is done through online agencies, third-party ad servers, and networks and exchanges with the sole purpose of promoting their businesses. There exist agreements between online gambling service providers and individual customers or players to offer betting services for money, thus attracting more and more players.
The online gambling ecosystem is governed by a vast regulatory framework, is a factor of the market size, the number of entities participating, and the level of illegal activity taking place in the market. Legislation that governs online gambling includes licensed markets that are fully open to commercial operators and those that are explicitly prohibited and banned. Some jurisdictions have in the past opened up their markets based on gains reported from other market; all markets are unique so the arguments will vary with the reported or projected gains.
It is a fact that the regulatory requirements, level of online gambling penetration and tax rate regime will differ by geographical region. As the state of legislation continues to evolve, legalized gambling markets in the US will experience severe impacts with increase of costs and exposure to entry barriers including initiatives for consumer protection and increasing tax rates. By a huge margin, the UK is currently the dominant regulated online gambling market for many online casino operators. Other regulated markets of considerable size include Sweden, Spain, Italy, and Australia.
Considering the many years that gambling has been practiced legally in some parts of the world, the global economy would generally be miles ahead of what it is today. The greatest hindering it appears is the many countries that continue to prohibit the penetration of the online gambling industry. Did you know that online gambling is illegal in Singapore, Qatar, India, North Korea, and the United Arab Emirates (UAE)?
In countries such as Russia, the ban on online gambling only excludes interactive gambling that is mainly involved with simulators of slot machines, card games, and casino games. Other than the United States and other few countries where online gambling is being legalized on a state by state basis, in a manner that allows the industry to grow, the situation is dire in some areas. Some countries have allowed online gambling operators to conduct business but stringent measures and restrictions have become barriers that erode the overall growth of this gambling sub-sector.
While it is a fact that some countries and jurisdictions have not embraced gambling to the fullest, the industry is evolving fast. This evolution is inspired by the technological advances taking place around us; if the industry is able to stay aligned, then the profits will continue to flow.
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