What’s The Online Gambling Industry Currently Worth?

Gambling debt and addiction

While gambling can be a source of entertainment, it can also cause serious money problems, addiction and debt.

1. Rise of Cryptocurrency Transactions in Casinos

Cryptocurrencies are no longer the future. The majority of online gambling and casino operators have already switched to Bitcoin and other cryptocurrencies as their standard mode of payment. Clearly, they see many advantages. Some of which include:

• All operations are automatically recorded within the game, which is why nothing goes unnoticed. All settlement between players and casinos are entirely transparent. 
• Gamblers need not enter their data during deposits. Also, it is virtually impossible to hack blockchain systems.
• Cryptocurrency payment transaction fees are either zero or considerably smaller than in paper currency transactions.
• Replenishment of deposits and withdrawals would require comparatively lesser time than the traditional payment method.
• Players can execute all transactions anonymously by replenishing casino accounts using cryptocurrencies.

How big is the online gambling market?

The online gambling market is massive. Given the value it earned last year, the expectation is that it will continue to grow at a compound annual growth rate (CAGR) of 7.91% until 2026, as per online gambling revenue statistics.

(GlobeNewswire)

What are we gambling on?

By far, the most popular type of gambling in the UK is the National Lottery, with almost a third of Brits (27%) taking part in it in 2022. The next most popular types of gambling are scratchcards (10%) and sports betting with 5% of Brits taking part in this in 2022.

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Bottom Line

Gambling is here to stay, and all these trends and facts support this. Still, with the rise of online and especially mobile gambling, it’s interesting to see how these latest gambling statistics will evolve in the next few years. It’s a question of time when these two sectors will overpower land-based gambling. But still don’t expect brick-and-mortar casinos to give up just yet, considering that what they offer goes beyond playing games.

Sources: IBISWorld, OPJ, Statista, Statista, Gov.ie, Newzoo, Gambling Commission, 888, OPUS-ULETH, Calgary Dream Centre, Queensland Government, DIA, Market Research, Statista, Legislative Council Secretariat, National Gambling Board of South Africa, NOIPolls, GeoPoll, Gambling Commission, Rutgers, NCBI, nextavenue, PXPFinancial, PRNewswire, Market Research Future, NCPG, UNCW, Addictions, Buffalo.edu

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Milena PetrovskaUpdated: 16 Sep 2022

Milena started her journey in the iGaming industry as a full-time English Content Writer back in 2014. It didn't take long for her to become passionate about this fast-growing mark...

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The online gambling market experienced a meteoric rise during 2020 as a result of the global pandemic that forced people to stay at home and avoid mass gatherings in public spaces like physical casinos. In fact, the online gambling industry surged to reach a market value of nearly $77 billion dollars worldwide. This marked a 13.7% compound annual growth rate (CAGR) since 2015. Right now, analysts are looking at the upward trend of the industry and believe that the online gambling market will continue to experience a CAGR of 8.6% from 2025 to 2030. That means that it’s estimated the global online gambling industry will be worth well over $192 billion in 2030.

The Cause of the Rise

Of course, analysts can look at the COVID-19 pandemic of 2020 as one of the prime movers of the growth of the industry. However, there are also a number of different factors to take into consideration such as the economic growth of various economic markets. Various economic classes, particularly the middle class, have experienced an increase in spending power over the past few years. This translated to more disposable income that could go to recreational activities like gambling.

Another factor to look into is the growing adoption of technology all over the world. Specifically speaking, internet accessibility is a lot more prominent around the world, especially in developing nations in Africa and Asia. Since more people now have access to wireless internet connections, it’s a lot easier to indulge in online services such as those provided by casino platforms. Aside from that, mobile technology is becoming more accessible to the consumer public as well. There is a growing number of smartphone and tablet users all around the globe. And since casino platforms are developing more mobile-friendly versions of their apps that mean there is a higher incentive for people to indulge in online gambling. Some of the world’s most popular online casino games can now be played on mobile devices, therefore providing consumers with a higher degree of mobility and accessibility.

The rise of e-commerce also contributed to the growth of the online gambling market. In the past, there was still substantial trepidation on the part of the consumer public to engage in online transactions over any potential security and privacy threats. However, most of those fears have now been appeased and the e-commerce industry is continuing to grow every single day. There is now higher confidence among the consumer public to engage in online transactions with various websites. Digital payments are now becoming more commonplace and that’s why various virtual e-commerce platforms are now thriving.

Potential Hindrances to the Growth of the Industry

Even though the future of the industry looks bright, there are still a number of different threats that could potential hinder the growth of the online gambling market moving forward. Yes, technology is growing to become more sophisticated and accessible. This means that society is likely to learn more towards technologically-powered services and products. However, there is still also the matter of the global economy to take note off. The possibility of a global recession could potentially hamper the growth of the online gambling industry.

Aside from that, there are also various countries all over the world that are doubling down when it comes to the restriction of gambling regulations. There are various social and moral issues that complicate the process of legalizing gambling in these areas such as potential gambling addiction and internet security. However, for the most part, many nations around the world have very healthy and functional online gambling regulatory systems and structures in place.

Variance of Services

The sheer variance of services of the online gambling industry also contributes to its growth. There are the standard online casinos that offer games like slots, poker, and baccarat to users. However, there are also sports betting websites that contribute heavily to the growth of the industry. Earlier, it was mentioned that there is increasing growth in terms of mobile usage. But there are also developing technologies in the realms of extended reality that could potentially enhance the gaming experience of users.

Ultimately, there is no denying that the online gambling industry is poised to experience substantial growth over the next decade despite the uncertainties posed by the state of the global economy.

Figure 8 – Respondents agreeing that gambling in this country is associated with criminal activity

Overall gambling participation

Overall, 42% of adults (16+) said they had participated in at least one form of gambling in the previous four weeks, representing a significant decline from the previous year (47% in 2019). A larger proportion of men (45%) had participated in any form of gambling as had those aged 35-44 (46%), 45-54 (48%) and 55-64 (47%). Similar to the previous year, those in the youngest age group (16-24) had the lowest level of gambling participation (31%). Between 2019 and 2020, each gender and age category (shown below) show some level of decline in participation rates, albeit not all are statistically significant at the 95% level.

Cyprus

Gambling in the Island of Love is currently regulated by the 2019 Betting Law, an update to the country’s comprehensive legislative framework introduced in 2012. Under the 2019 Betting Law, land-based casinos (legalised in 2015) can continue to operate, while online operators can only offer betting services. Bets are permitted on sports, esports, and non-sports events; a notable exception is horse racing, for which the Nicosia Race Club holds a monopoly.

Licenses for online bookmakers are issued by the National Betting Authority and are valid for one or two years. The cost is €30,000 or €45,000, depending on the length of the permit. Operators also need to provide a bank guarantee of €550,000 and are subject to a total tax burden equal to 13% of their GGR (10% tax + 3% administrative fee).

Following years of rapid expansion, the industry’s GGR in Cyprus amounted to €88.7 million in 2019. This represents a 1% decline over the 2018 data, indicating a mature market.

Why Online Gambling needs to be regulated in the UK

Regulation is crucial for the Online Gambling market in the UK. It’s beneficial to both operators and players, with the core focus of regulations being the safety of all parties. This is done through regulations that promote important points such as fraud prevention, anti-underaged gambling processes, and money muling.

With Online Gambling being easily accessible, each of these things – and more – are vital. The ease for underaged users to claim to be adults is quite high, so it is clear as to why we witnessed the introduction of regulations bringing in ID verification and other anti-underaged gambling tools. In the same light, using Online Gambling to ‘clean’ money is a common criminal practice, so this is why many regulations focus on anti-money laundering processes.

It’s also important to consider how sports events impact Online Gambling and why regulation is vital in this segment. Euro 2020 saw a huge increase in player verification, with millions of pounds being waged throughout the tournament. It’s easy for fraudsters to attempt to slip through the cracks in such a busy period, where operators may be overwhelmed with player signups.

3. Customer's Evolving Gambling Habits

It is no brainer that the customer's habit evolves with time. Social gambling and the rising popularity of gambling applications are some of the biggest indicators in this regard. Players can now easily compete on leaderboards and participate in social slots, whenever they want to.

Mobile technology has been a massive influence on people with a huge percentage of the world's population owning a smartphone. Casinos are more than ever investing in gaming applications and creating mobile-friendly games. It seems like mobile games will soon take over their desktop competition.

Source: www.grandviewresearch.com

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2. Virtual reality

Virtual reality (VR) is one technology that has been slowly creeping its way into the online gambling industry over the last few years and it’s not hard to see why.

VR provides a more immersive and realistic experience, making games even more exciting.

While VR casinos are still in their infancy, we expect to see more and more operators offering this type of gaming in the next few years.

One company that is already ahead of the game is SlotsMillion.

They were one of the first online casino to launch a virtual reality casino back in 2015.

And since then, they have continued to innovate with new VR games and features.

We think VR will become increasingly popular in the online gambling world and could even develop new types of games that can only be played in virtual reality.

Related

Malta is regarded as one of the world’s leading centres for online gambling, with hundreds of firms choosing to operate out of the Mediterranean archipelago. If you are considering choosing Malta as the base for your online gambling firm, you’ll want to do you due diligence, and make sure it’s the right location for you.

To help you do this, Xace has compiled a selection of online gambling statistics for Malta which paint a picture of the market on the island. For 2020, why not review our Malta Online Gaming Statistics 2020 article.

Read the room

An online affiliate's aim is to get people to click on their links. To deliver the best results, casino options should be thoroughly familiar with their target market. A few main reasons generally lead players to pages include...

• It is important for them to find the best option: Let's be honest, the term "best" is subjective. A good affiliate will rank online casinos based on different attributes like promotions, game library, reliability and customer service.
• Bonuses are important: Online areas use bonuses to attract new players and encourage them to play on their platforms. An affiliate might be visited by players who wish to view active promotions.
• They are seeking entertainment AND information: Visitors may land on a website if they are interested in a specific topic or looking for more tips. If a person wants to learn how to play slots, he or she might look up a resource on playing them via an affiliate.

How to get a license as a gambling operator in the UK

In order to get a license as a gambling operator in the UK, operators must apply via the Gambling Commission website. This includes filling in a range of information, as well as paying a fee.

Of course, the most important part of this is being compliant with the rules and regulations, which are required to receive a license. There are many regulations and relevant information is provided when applying for a license, however, one of the most important things are no doubt the KYC requirements.

The requirements include verification of a customer’s name, address, and date of birth, which are generally verified through the submission of an official government document (such as a passport or driving license) and proof of address (such as a bank statement or utility bill). These documents must be verified during the onboarding process, or before a customer is allowed to deposit funds and start gambling.

Verification methods such as these can cause issues for customers, as mentioned previously, and its possible users will not want to wait to be verified or simply struggle with the process. This risk of operators losing potential customers is a concern, but solid industry figures such as IDnow go through remarkable efforts to address such matters.

Our AutoIdent solution is a major tool to address the customer experience as well as being quite secure. AutoIdent is an AI-Powered identity verification solution that is fully compliant, fast, and highly customizable. It is a solution to ID verification issues, allowing users to quickly and easily complete the onboarding process.

All it requires is a mobile phone or computer with a camera and a few minutes of the user’s time. AutoIdent provides a simple step-by-step guide to users, aiding them in providing the correct documents, then automatically verifies the data in just a few minutes.

The IDV solution has a proven track record of success, provides conversion rates of up to 90%, and is not only compliant with the DACH market (Read more: Online Gambling regulation in DACH – an overview), but supports rapid scalability with compliance in 195 countries while supporting over 30 languages. If you want to enhance your onboarding process and reach compliance in a range of markets, AutoIdent will get you there in no time.

By

Rayissa ArmataHead of Regulatory Affairs at IDnowConnect with Rayissa on LinkedIn

KEY MARKET INSIGHTS

The global online gambling software market size was USD 66.72 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with online gambling witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a significant growth of 11.2% in 2021. The market is projected to grow from USD 74.17 billion in 2021 to USD 158.20 billion in 2028 at a CAGR of 11.4% in the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

The growing adoption of smartphones, advancements in internet technology, and increasing spending power of users, among others, are driving the market demand for digital gambling. The online gambling software providers are heavily investing in advanced technologies to enhance the customer experience, which will boost the interest of players. In the scope of the market report, the market estimation is executed on the basis of the revenue generated by gambling platforms from users.

Asia Pacific Market, By Type

The increasing popularity of gaming tournaments such as Rocket League Oceania, Philippine Collegiate Champions League & AORUS South Asia Cup due to their impressive international prize pools has created lucrative opportunities for the eSports segment. In January 2021, Valve Corporation reported that Dota 2 generated a pool prize of USD 34.4 million in the annual international esports tournament in 2019. These tournaments attract millions of fans to gamble on their favorite eSports teams. Major bookmakers, such as Bet365, Betfair, and Unibet, are witnessing an increase in bets on eSports tournaments.

The legalization of sports betting in Asia Pacific countries is contributing to a substantial rise in the online gambling market revenue. Online gambling handled & licensed by the Philippine Amusement and Gaming Corporation (PAGCOR) is legal under Philippine law. The country holds the presence of several license online gambling operators including 22bet.com, 888Casino, Dream Vegas, and 1xbet. Furthermore, in December 2020, the Philippine government also allowed integrated resort casinos to offer online gambling amid the coronavirus pandemic. Similarly, Japan government permits online betting on several race categories including motorcycle, bicycle, horse, and motorboat.

RESULTS

Section 7: Bonuses

Impact of COVID-19

The COVID-19 outbreak is expected to witness a positive impact on market growth. To prevent the spread of coronavirus, several countries across the globe have imposed restrictions and enforcing social distancing. Strict restrictions for people’s movement are expected to have a considerable impact on land-based casino activities. Due to lockdown, several gambling players are shifting from land-based to online-based betting and gambling, thereby expected to drive the market growth in the lockdown period. On the other hand, the cancellation of several sports events during the COVID-19 outbreak across the globe is impacting sports gambling and betting adversely which is expected to restraint the market growth to some extent.