The value of the global online gambling market in 2023 was approximately $84.79 billion. It is now projected to grow to $164.53 billion in the next 10 years, that is, by 2033. That brings the CAGR to 6.85% and supports the fact that there is a growing adoption of online gambling. The industry primarily benefits from the availability of the Internet and a compatible device. Payment gateways and celebrity endorsements have also been taken into account.
Needless to say, online gambling platforms thrive on online payments. Digital payment gateways support this, securing player transactions. A single leak can cause the platform’s reputation to spiral out of control, leading to unintended consequences. Players place a certain level of trust in platforms when they transfer funds to their accounts to interact with digital gambling content. A breach of this trust only serves to drive players away.
The adoption of cryptocurrency is another factor contributing heavily to the rise of the global online gambling market. Most parts of the world recognize cryptocurrencies like bitcoin, Ethereum, and XRP. Platforms utilize cryptos to make payments for services. In fact, several platforms even roll out special promotions for players transacting crypto tokens on their platforms.
Some of the promotions are welcome bonuses, or extra spins, among others. They differ from one online gambling platform to another. Some USA sports betting sites offer a 100% bonus up to 300 EUR, while others offer a 100% bonus along with 30 free spins. Promotions can also include tokens like ‘7 BTC’ or ‘5,000 USDT.’
Technological advancements in terms of Artificial Intelligence have enhanced the user experience. AI helps detect the most engaging content and promotes similar content on platforms. Select users may also get customized experiences, whether in terms of promotion or recommended gambling title.
The global online gambling market’s future growth depends on its expansion into new regions. Experts predict that the UK will lead the way in Europe with the fastest adoption of the industry. The fast Internet, the growing popularity of online gambling, and the widespread use of smartphones support the UK. The European Gaming & Betting Association predicts that sports betting will dominate the market. Other regions that could see a similar trend are Italy, Spain, and France.
There are underlying challenges to the global online gambling market’s expansion. Regulators must control fraudulent activities and other cybercrimes. The industry’s expansion will only be an invitation to malicious actors who could architect new ways of draining funds from the system. Key players like Sky Betting and Gaming, Betsson AB, and 888 Holdings PLC are currently leading the market. More players will change the dynamics as they will introduce new titles and possible integrations with existing ventures.
Interestingly, the mobile segment holds 87% of the market share. The remainder is dedicated to desktops and tablets. Reports from 2023 indicate that the mobile segment’s market share will continue to grow in the coming years.
Mobile devices offer remote engagement and multiplayer gaming. They are also more convenient for players since they don’t have to plug their devices during playing hours.
Sports betting held almost 65% of the global share. It will likely continue to hold the majority of the shares, with the possibility of experiencing a massive increase.
