The global Online Gambling And Betting Market is estimated to be valued at US$ 94.34 Bn in 2024, exhibiting a CAGR of 10.9% over the forecast period 2024-2031. The increasing penetration of smartphones and high-speed internet access has enabled seamless access to online gambling platforms from any location. Furthermore, growing social acceptance of gambling activities has encouraged more people to participate in online betting from the comfort of their homes.
Market Dynamics:
Increasing smartphone penetration and growing popularity of mobile applications for gambling are expected to be major drivers of market growth over the forecast period. Additionally, many gambling companies have invested heavily in developing immersive and engaging mobile applications to attract younger generations of players. Changing regulations in various countries are also opening new opportunities for licensed operators. Recently, several states in the U.S. have legalized online sports betting and casinos, expanding the potential market size significantly. This positive regulatory push is anticipated to positively influence the industry landscape in the coming years.
Market Drivers
Increasing Adoption of Smartphones and Internet
One of the key drivers for the growth of the global online gambling and betting market is the increasing adoption of smartphones and high-speed internet across the globe. With more and more people getting connected to the internet through their mobile devices, it has become very convenient for them to access online gambling and betting platforms anytime and anywhere. This growing digital connectivity and mobility is enabling people to place bets while on the move rather than having to visit land-based casinos or betting shops.
Expanding Regulatory Approvals for Online Gambling
Another major factor fueling the market growth is the expanding regulatory approvals for online gambling activities in various countries. Several nations like the U.K., Germany, Italy, etc. have legalized and regulated online gambling to generate tax revenues. This has encouraged existing as well as new players to enter these markets and offer their services legally. The loosening of regulations globally is helping remove barriers and boosting the overall demand for online gambling and betting platforms.
Market Restraints
Risk of Cybercrimes and Data Breaches
One of the key challenges faced by the online gambling and betting market is the growing risk of cybercrimes like hacking, gambling site scams and data breaches. As transactions and personal data of customers are handled online, there are higher chances of this information getting stolen or misused. Any high-profile cyberattacks or data leaks can seriously damage the reputation of gambling operators and discourage customers from using their platforms. This acts as a major restraint for the industry.
Cultural/Religious Restrictions in Certain Regions
Certain regions like the Middle East and parts of Asia Pacific have cultural or religious restrictions around gambling activities. For example, gambling is strictly prohibited under Islamic laws practiced in Middle Eastern countries. Similarly, in some Asian nations gambling is seen as an unethical activity that could lead to financial losses or social issues like addiction. The conservative socio-cultural mindsets in such areas pose significant barriers for online gambling operators targeting these markets.
Market Opportunities
Expanding into New and Emerging Markets
With growing digital and economic developments, several new markets are opening up globally for online gambling providers. Regions like Latin America, Africa, and Asia Pacific outside restrictively Islamic nations have huge untapped potential. Gambling companies can venture into these emerging territories by setting up local gambling platforms, offering payment options suitable for the region, and providing services in local languages. Tapping into these new growth fronts would create substantial opportunities.
Integrating Blockchain and Cryptocurrencies
One promising opportunity lies in integrating Blockchain and cryptocurrency solutions into online gambling platforms. Blockchain validates transactions without any central authority securely. Cryptocurrencies allow anonymous and borderless money transfers. Their adoption can help address issues like payment risks and compliance with multiple jurisdictions. Several gambling firms have already started experimenting with such technologies, paving the way for wider integration going ahead.
Link - https://www.coherentmarketinsights.com/market-insight/online-gambling-and-betting-market-2511
Key Development:
- In July 2023, online gambling operator, Kindred Group, unveiled its proprietary technology platform in Pennsylvania, U.S. enabling customers in the state to access the revamped Unibet Casino and Sportsbook apps. The platform offers an enhanced gambling experience through personalized content, a diverse range of products, and advanced data analytics capabilities, allowing Kindred Group to tailor its offerings to individual customer preferences while ensuring a seamless betting experience.
- In June 2023, Groupe Partouche, the leading France-based casino operator, and Betsson AB, the prominent online gaming company, announced a strategic partnership to launch online casino services in Belgium's regulated market. The collaboration aims to leverage Groupe Partouche's dominance in land-based casinos and Betsson's expertise in the online gaming industry to deliver a compelling and localized online casino offering tailored specifically for Belgian customers.
- In June 2023, a leading online gambling operator, bet365, officially launched its sportsbook and casino products in the state of Iowa through a multi-year partnership with local casino operator, Casino Queen Marquette. This expansion marked bet365's entry into its fifth U.S. market, enabling the company to offer its market-leading online betting services to customers across the Hawkeye State. The partnership with Casino Queen Marquette provided bet365 with the necessary licensing and access to the Iowa market, allowing it to establish a strong presence in the state .
- In September 2022, Amazon.com, Inc. partnered with DraftKings Inc. in a multi-year agreement that made DraftKings Inc. the exclusive provider of odds, insights, and betting content for Thursday Night Football (TNF) games broadcast on Prime Video. As part of the collaboration, DraftKings will integrate its offerings into the TNF pregame coverage, delivering engaging content, unique betting offers, and same-game parlays to viewers starting September 15, 2022. The deal allows DraftKings to feature its odds and betting information during the live TNF broadcasts, beginning with the matchup between the Los Angeles Chargers and Kansas City Chiefs. This partnership represents a significant milestone as the NFL continues to embrace legal sports betting, and streaming platforms like Prime Video become the preferred destination for live sports content.
Key Players:
888 Holdings PLC, Bet365 Group Ltd., Betsson AB, Entain, Flutter Entertainment PLC, Kindred Group PLC, Ladbrokes Coral Group PLC, LeoVegas, MGM Resorts International, Paddy Power Betfair PLC, Penn National Gaming, Rush Street Interactive, Sky Betting & Gaming, The Stars Group Inc., and William Hill PLC
