A report released by analysts at Technavio predicts that the online gambling market could be worth $305.5 billion (€289.7 billion) by the year 2027.
According to the report, online gambling was worth an estimated $155.51 billion (€147.5 billion) in 2017. By 2027, the industry could increase by as much as $150.5 billion (€142.7 billion) at a compound annual rate (CAGR) of 11.03% to hit a market value of $305.5 billion (€289.7 billion).
In the report analysts noted:
‘The growing demand for mobile gaming is notably driving the market growth. Smartphone penetration is increasing due to the declining average selling price (ASP) of the devices. Smartphones provide a convenient and intuitive interface to play casino games, which is resulting in users migrating from desktops to mobiles to play.’
The report also notes that the increased usage of mobile devices is complemented by easier payment methods making mobile gambling apps increasingly popular. It predicts that smartphones will be the main driver of the industry for many years to come.
Security challenges
Analysts also mentioned that the industry as a whole faces some major challenges including ‘elevated data security issues’ along with ‘security and credibility issues in online gambling platforms.’
“Online gambling websites have become prime targets for cyber attackers and scammers. Gambling websites capture vital information about users, such as bank details and credit card numbers, which are vulnerable to hacking. Several offshore-run internet casinos do not have the latest cybersecurity technologies in place, which increases the chances of cyberattacks. Thus, issues like these will hinder the growth of the global market during the forecast period.”
The report also goes on to suggest that a ‘lack of fair and responsible casino gambling standards’ could further hinder market growth.
Asia Pacific to drive market growth
Technavio’s report predicts that the Asia-Pacific region (APAC) could be the main driver of growth for the next four years. According to the report, the region which includes markets such as Japan, South Korea, India, Australia, and New Zealand, could account for 39% of all growth in the online gambling market.
North America is set to follow just behind APAC thanks in large part to the legalization of sports betting in the United States and the predicted launch of further iGaming markets across both Canada and the USA.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.