The market was 35.97 billion USD in 2014 and is estimated to reach 66.59 billion USD by 2020, at a CAGR of 10.81%. The use of mobile devices for online gambling purposes is increasing. The market growth for this industry is very geography specific.
Gambling on the Internet is receiving something in value at the end of a game, which is usually money. Online gambling includes activities like poker, casinos (where traditional games are played like blackjack, roulette, etc), sports betting, bingo and lotteries. Sports betting's and casinos make the largest amount of money.
More than 80 nations have legalized online gambling and Europe has the largest online gambling market in the world, and this is just going to increase as Netherlands adopts new online gambling regulations. In Asia Pacific region, the online gambling sector has not grown much, as there has been no scope.
In countries like Singapore, the government has made all sorts of gambling illegal and thus no market as such. In China and South Korea also gambling sites working illegally were arrested. While in the USA, three states already allow online gambling, and it is expected that more states are going to adopt similar regulations, allowing this market to grow in these regions, as the government want to benefit from the tax revenues. In Africa also similar to Asia there has been no plans for legalizing online gambling anytime soon.
Drivers and Constraints:
Though there is a growth in the online gambling industry, land-based gambling still dwarfs the Internet activity, which can be a constraint for this industry in the long run. In specific regions there has been minimal growth of this industry due to the strict government regulations, which become a huge constraint for players to work in the market, while on the other hand, a major driver for this industry is the opening up of new markets in countries like USA and Europe where certain states are allowing legal online gambling. There is even a huge risk in entering into this industries especially in countries where it is illegal, and these risks restricts the entry of new players and the expansion of existing players in different geographies.
Since the online gambling market allows players to use virtual money it has reduced the burden and risk of carrying cash as in the case of real gambling activities, and since this can be done in the comfort of ones home, many people are resorting to online gambling, hence showing that there is an opportunity for this market in the future. The Future:
This market will keep increasing in the future as it has still not reached maturity stage and the governments are moving to regulate this practice, which gives more moving space to the players in this market to grow.