Online Gambling Market Size, Share & Trends Analysis Report By Type (Sports Betting, Casinos, Poker, Bingo), By Device (Desktop, Mobile), By Region (North America, Europe, APAC, Latin America, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global online gambling market size was valued at USD 53.7 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.5% from 2020 to 2027. The high internet penetration and increasing use of mobile phones among individuals for playing online games from their homes and public places are driving the market. In addition, factors such as easy access to online gambling, legalization and cultural approval, corporate sponsorships, and celebrity endorsements are also contributing to market growth. The growing availability of cost-effective mobile applications across the globe is further expected to fuel market growth.

The internet has become a global platform for communication and enables merchants to offer their services in the digital market space. Trends also suggest that the consumption of services in the global virtual market has increased by 28.0 percent annually since the last decade. With the growing use of internet, the growth rate of online casinos has increased significantly. In addition, growing awareness of latest technologies and increasing disposable income of individuals are expected to propel market growth.

Developments in the online space are parallel to the annual growth of internet casinos. These developments are made to achieve the desired credibility in the gambling zone. Therefore, online casinos are focusing on investing in information solutions that offer continuous support to gamblers, ensure the credibility of the operations, and prevent illegal affairs. Numerous online casinos are offering a free play version of some of their games, which is creating growth opportunities for the market.

Online gambling can be considered as a global activity both in terms of technological and organizational viewpoints. From a technological point of view, online gambling operates via internet. However, in an organization, it works on multiple server points existing across the globe. For instance, on a global scale, more than 80 jurisdictions control some form of gambling; however, they are grouped in only a few places.

Numerous countries are legalizing online gambling since it offers a high rate of employment and helps in revenue generation. For instance, in India, online gambling has been made legal in Sikkim and Goa. In addition, participation in online gambling allows players to experience gambling activities in real-time through internet services. The growing number of sports followers across the globe has fueled the demand for sports betting. Majority of bets are placed on boxing, baseball, football, and hockey sports, which is, in turn, driving the market.

Increasing development of new technologies such as virtual reality and blockchain is also driving the growth of the industry. This may be attributed to the fact that several companies are now integrating the blockchain technology into their online gambling business. This helps them ensure transparency in gambling activities and offer enhanced user experience. In addition, blockchain-based gambling platforms are completely decentralized and are free of third-party influence.

On the contrary, cybercrime in the industry is increasing at a rapid rate. Signal manipulation through fake apps and app-based hacking are some of the major concerns hampering market growth. The online gambling industry is also witnessing an increasing risk of app-based hacking. In addition, compulsive gambling can affect an individual’s health and personal relationships, leading to issues such as depression or debts.

COVID19 Impact Insights

The outbreak of COVID-19 is projected to favorably impact the market. To prevent the spread of the virus, countries across the globe have imposed restrictions and are promoting social distancing. Stringent restrictions on people’s movement are anticipated to have a significant impact on land-based casino operations. Numerous players are shifting to online gambling as-a-result of land-based gambling lock down. However, cancellation of major sports events across the world is adversely impacting sports betting, thereby hindering market growth.

Type Insights

Based on type, the online gambling market has been segmented into sports betting, casinos, poker, bingo, and others. The sports betting segment dominated the market in 2019 owing to the growing use of digital platforms across the world. Moreover, the rising disposable income in Asia Pacific has resulted in a higher spending capacity, which is also expected to contribute to segment growth. Live-action betting and fixed-odds betting are some of the popular types of internet sports betting.

Online poker has garnered attention particularly from college students. The segment is expected to register a significant CAGR owing to the wide popularity of online card games. Over the years, convenience has been one of the most important factors contributing to online poker’s popularity as many sites accept deposits from major credit cards, online wallets, and even virtual currencies such as Bitcoin. The wide range of games available for players to choose from is further driving the segment.

Device Insights

The desktop segment dominated the market in 2019. The large screen size of desktops compared to mobile phones and other devices enables gamblers to enjoy the graphics and intricate details of the game. In addition, performance parameters such as picture quality, sound volume, and storage capacity can be adjusted on desktops for improved gaming experience. These factors have contributed to the growth of the desktop segment.

Technological innovations in mobile phones and enhanced gaming graphics in smartphones have resulted in increased access to online mobile games. Moreover, online gambling allows individuals to gamble from their comfort zone and offers an uninterrupted gaming experience. The wide availability of smartphones with high-end features such as extended storage capacity and improved graphics offered at reasonable prices also contributes to market growth. Mobile online gambling offers various benefits to players such as increased deposit options, loyalty points, and options to play with other players situated anywhere across the globe.

Regional Insights

Europe dominated the market in 2019 with a market size of USD 22.0 billion. The growth can be attributed to the legalization of gambling in countries such as France, Germany, Spain, Malta, and Italy. Other favorable factors for market growth include the rising use of smartphones, availability of high-speed internet, and rising popularity of online casinos. Moreover, the Gambling Act 2005 set up by the U.K. Gambling Commission (UKGC) has permitted companies to advertise their gambling sites, which is also contributing to the growth of the market in the region.

Meanwhile, the growing use of internet services and relaxation of regulations pertaining to online betting and gambling are expected to drive the growth of the market in Asia Pacific over the forecast period. In addition, growing popularity of bitcoins has resulted in the increased use of digital currencies for betting in the region. High economic growth of the Asia Pacific region, coupled with increased spending on leisure activities, is expected to boost market growth over the forecast period. Macau and Hong Kong are two of the prominent sports betting and revenue-generating countries in the region.

Key Companies & Market Share Insights

Companies are focusing on consistent innovations to personalize and differentiate their service offerings for potential customers. Product launches, mergers and acquisitions, and collaborations are some of the key strategies adopted by these players to gain a competitive edge in the market.

For instance, in January 2019, William Hill PLC acquired Mr Green and Co AB, a gambling company based in Sweden. The company carried out the initiative with an aim to strengthen its footprint in the Scandinavian region. Similarly, in March 2019, Bet365 signed a long-term office lease agreement for a 19,000 square feet office space in Marlton, New Jersey, U.S. With this move, the company aims to strengthen its footprint in the U.S. market. Some of the prominent players in the online gambling market include:

• William Hill PLC

• Bet365 Group Ltd.

• Paddy Power Betfair PLC

• Betsson AB

• Ladbrokes Coral Group PLC

• The Stars Group Inc.

• 888 Holdings PLC

• Sky Betting and Gaming

• Kindred Group PLC

• GVC Holdings PLC

Online Gambling Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global online gambling market report based on type, device, and region:

• Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Sports Betting

  • Casinos

  • Poker

  • Bingo

  • Others

• Device Outlook (Revenue, USD Billion, 2016 - 2027)

  • Desktop

  • Mobile

  • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa