Industry Insights
The global online gambling market size was valued at USD 27.56 billion in 2014 and is expected to grow at 9.8% CAGR over the forecast period. Continuous technological advancements such as handheld devices and smart phone penetration are key driving factors in the market. This, in turn, has resulted in rise in consumer inclination toward online gambling over conventional gambling.
Global online gambling market, by type, 2014 - 2024 (USD Billion)
Online gambling has emerged as one of the mainstream leisure pursuits for consumers especially in countries such as Canada, U.K., Brazil, and U.S. Owing to advancements in mobile technology, there has been significant transformation from casual slot playing to online gambling, irrespective of place and time. Increasing penetration of mobile devices such as smartphones and tablets, along with growing availability of broadband services, is expected to propel demand over the forecast period.
Moreover, increasing adoption of cost-effective payment mechanisms among consumers is a key factor increasing investments in the market. Introduction of technologies such as virtual reality and augmented reality is expected to increase popularity of online gambling during the forecast period.
Rise in tax percentage by local governments on online gambling platforms is anticipated to hinder market growth over the forecast period. For instance, the European Union revised its tax rates on online services for some European countries in January 2015 by increasing value-added tax (VAT) to millions of dollars per year.
The online gambling market is witnessing lucrative growth as it is being targeted by cybercriminals by costing players billions of dollars. Money transferred via different payment gateways such as electronic checks, credit cards, and wire transfer is targeted by bots sent by cybercriminals and easily intruded.
However, companies are taking steps to resolve this issue by raising awareness among users and urging them to install anti-virus software on PCs and smartphones. In addition, company websites are being protected by third-party applications to secure online money transactions.
Segmentation by Type
• Sports Betting
• Casinos
• Poker
• Bingo
• Others
Based on type, the market is segregated into sports betting, casinos, poker, bingo, and others. The sports betting segment dominated the market in 2016 with more than 40% of the revenue. It is expected to maintain its position over the forecast period. The segment comprises many sports such as tennis, basketball, cricket, and football. Football contributes a major share owing to massive global fan following compared to other sports.
Owing to ongoing developments in online gambling platforms, a punter can place a bet in real time. Moreover, betting on individual players, red cards, and goals in the game has been simplified. Additionally, casinos, poker, and lottery are likely to emerge as lucrative segments in the market owing to rise in participation of consumers to earn offers and rewards.
Casino is the second largest segment in the online gambling market, which accounted for USD 8.13 billion in 2016. Availability of a wide range of games such as Blackjack, Big Six wheel, and Roulette and technological developments such as real-time betting are expected to drive the segment over the forecast period.
Segmentation by Region
• North America
• U.S.
• Europe
• U.K.
• Asia Pacific
• Australia
• Central & South America
• Africa
Europe dominated the market in 2016 and valued USD 18.06 billion in terms of revenue. It is anticipated to maintain its position over the forecast period due to growing number of people involved in gambling. In addition, consumers prefer smartphones and tablets to gamble online over visiting brick and mortar shops.
Asia Pacific is projected to record a CAGR of more than 10% over the forecast period. Change in regulations and development of online gambling platforms in countries such as China, India, and Japan can also be attributed to growth. For instance, companies such as Bet365 Group Ltd. and Sports Betting & Gaming offer online gambling platforms in these countries.
Competitive Landscape
The online gambling industry is fragmented in nature and is marked by presence of numerous domestic and international players around the world. Moreover, companies are undertaking various strategies such as mergers and acquisitions (M&A) to establish their presence in the market.
For instance, in February 2016, GVC Holdings acquired online gaming company Bwin to strengthen its presence in the global market. Key companies operating in the online gambling industry include William Hill plc.; Bet365 Group Ltd.; Paddy Power Betfair plc.; Betsson AB; Ladbrokes Coral Group plc.; Amaya Inc.; 888 Holdings plc.; Sky Betting & Gaming; Kindred Group; and GVC Holdings plc..
