Just how big is the global online casino market?

10:52 Aug 21st, 2022 Online Gambling

It’s easy to see that the global online gaming and betting markets have grown significantly throughout the last two decades.

In 2021, the industry reached a value of over $72 billion: a previously unreachable size.

Economic experts are looking to the future, as they’re wont to do. they believe that the market will be worth over 130 billion by 2027. This includes a 9.96% compound annual growth rate (CAGR) from 2022 to 2027.

This market they’re predicting includes a variety of betting establishments. It’s more than your most typical online casino games; they also take into account lotteries, poker games, bingo, and online sports betting.

Predicting The Industry by Game Type

When we talk about global online casino industry, we’re referencing a variety of entities. These include sales of goods and gambling services in general by individual companies, and organizations, but also partnerships that operate facilities such as video gaming platforms and bingo sites.

The recorded grown rate for this market is impressive: experts project a CAGR of 8% from 2018-2023!

The current products available create the clearest segments: casinos, bingo, sports betting, and poker. Of particular note is the sports betting sector, which—thanks to the global rise of digital platforms—has a massive market share. Also contributing to a higher spending capacity in this segment is the increase in disposable income in the Asia-Pacific region.

Regarding online sports betting, live-action betting and fixed odds make up the largest percentage. This is followed closely by online poker. It’s interesting to consider one of the fastest-growing groups in this sector: college students. As a result of this influx of new players and the popularity of online card games, market experts also expect a significant CAGR by 2027.

Convenience is one of the most crucial driving forces in the market expansion of online card games. As platforms continue to accept more forms of payment, including cash transfers through online wallets, international banks, credit cards, and cryptocurrency, users find it easier to participate with minimal effort. Naturally, the higher rates of usership drive the demand for newer, cooler games and a wider variety from which players can choose.

How Does Device Type Affect the Global Online Gambling Market?

When discussing market growth, it’s impossible to ignore the ability to use a wider variety of devices to access favorite games. Online gambling is divided into desktop and mobile gambling. In 2019, desktop gambling dominated the market. However, COVID brought a significant change: in 2020 and 2021, more people started wagering on their mobile phones.

Playing on the desktop has undeniable advantages: users can enjoy better graphics and take in the tiniest details. Sound, storage, and picture quality also contribute to the lasting value of desktops as a medium for the online casino industry.

However, as we’ve mentioned, tech innovations in gaming graphics and mobile phones have caused a shift. Smartphone gaming can’t be ignored. Mobile phones represent a convenience and accessibility that desktops simply can’t—you can play on the go, anytime, anywhere with WiFi or a data plan. This unparalleled convenience is a huge factor in overall market growth.

Market Drivers in Online Gambling

One of the key drivers in the global online casino market—but especially of note in the US--is the rise in gamer involvement during the lockdown. As social distancing rules were imposed in brick-and-mortar casinos, more and more users turned to online casinos. Reputable online casinos saw a huge increase in users and player participation. From the first lockdown in March 2020 through today, people looked for new entertainment options that they could enjoy from home.

Online casinos also bring a sense of community and normalcy to everyday life—players were still able to “meet” virtually and discuss industry issues and innovations. With all of the advantages that online casinos offer, it’s not surprising that they welcomed thousands of new users daily during this period!

Countries also saw this as an opportunity to earn fresh revenue during a particularly challenging time, with several going so far as to change gaming law and regulations to open options to new enterprises. For example, Belarus and Armenia both amended their existing gambling laws to legalize these new operations.

In addition to the natural growth in 2020 due to the pandemic, online casinos also increased their marketing efforts in 2020 at the peak of their growth. For example, many sites that support online gambling also ramped up their free spins, reload and welcome bonus promotions, and loyalty programs.

Restraints to the Online Gambling Market

The industry isn’t immune to certain restraints. Following the pandemic, the global recession had a heavy impact. It’s possible that the recession could continue to impact the online casino market in 2022 and 2023. This is mostly due to the huge economic losses and struggles reported in the last two years. Disposable income is at an all-time low all over the world. Naturally, this decreased willingness to spend cash on non-essentials. Sadly, online casinos fall into that category for many people.

Conclusions:

Overall, the future of online gaming has never looked brighter! With new games coming onto the market and companies breaking through restrictive laws and regulations, more and more options will be available to the public in the years to come.

Despite the global recession, growth persists in a number of sectors and usership has never been higher. Better gameplay, image quality, and variety contribute to the economic stability of the global market. During the COVID pandemic lockdowns, online casinos provided a sense of entertainment, stability, and community that was otherwise severely lacking.

There’s no question about it: as an industry, online gambling has always been, and remains, a safe bet.