The digital landscape is transforming several sectors, and the gambling industry has been revolutionized by technological advancements. Online gambling stretches across continents, with many countries experiencing flourishing industries and massive revenue.
Gamblers no longer have to travel across provinces or borders, or access illegal poker dens, to find their favorite slots or table games. Thanks to internet gambling, players can now access casino games from the comfort of their own home… and it is a booming market.
User behavior, market value, and regulatory landscapes of online gambling vary greatly across countries, and we will take a closer look at these factors and how they impact global gambling markets.
Countries With The Largest Online Gambling Market Value
The UK came out on top as the largest online gambling market in the world, which may come as a surprise to many who associate gambling with Atlantic City and Las Vegas in the US. The United States comes in second, followed by Brazil.
Here are the biggest gambling markets based on revenue in US dollars:
- United Kingdom: $12.48 bn
- United States: $10.96 bn
- Brazil: $10 bn
- Australia: $6.55 bn
- Italy: $4.51 bn
- France: $3.83 bn
- Germany: $3.65 bn
- Canada: $2.55 bn
- Sweden: $2.10 bn
- Spain: $1.60 bn
- Greece: $1.30 bn
Each of the markets listed above has unique economic, cultural, and legislative contexts, which results in a diverse international gambling market.
The Evolving Gambling Landscape
The global online gambling market is continuously growing, thanks to technological innovation, changes in regulation, and changes in consumer behavior.
One big shift that spurred this growth is the availability of mobile gambling. Online gambling platforms have already improved the accessibility of casino games to those living in areas lacking physical casinos. Now, with the uptake of mobile games, thousands of people get to play their favorite casino games on their smartphones.
Based on reports, around 86% of online gamblers prefer to play on mobile, while 13% use laptops or PCs, and 1% play via tablets.
Another significant change in the online gambling sector that has attracted many new players is the diversification of payment methods. Traditionally, only fiat currencies were used, and players had to convert their local currency to the one accepted by the gambling site.
Today, online gambling platforms accept a wide range of currencies with no need for conversion, including cryptocurrencies. According to Michal Graw, the most popular Bitcoin casinos allow players to perform all transactions using a digital wallet, offering secure payments (source: https://www.techopedia.com/cryptocurrency/best-bitcoin-casinos).
Fiat currency bets are still contributing the most to the industry, however recent estimates place the international crypto-gambling market at $250 million, with interest in crypto casinos quadrupling between 2019 and 2021.
What Is Driving Global Online Gambling Market Growth?
Analysts have discovered that online gambling growth is driven by the following factors:
Consumer preferences
Gamblers are always looking for more convenient ways to access casino games, and online gambling means that they can play slots or table games wherever they are, at any time of the day. There has been a shift towards games with several betting options and platforms that offer a wide variety of games.
Market trends
Mobile gaming is on the rise thanks to readily available internet and evolving smartphone technology. This means that more players can now access online casinos than ever before. Operators can cater to a wider range of players across countries, and tailor the gambling experience to different players.
Social elements, like leaderboards and chat rooms, are also being incorporated into games, making it a more social experience. This tends to draw more players who want an interactive and competitive experience.
Local regulatory circumstances
As expected, different countries have different circumstances (in terms of religion, culture, and politics) that influence the gaming sector. In countries where online gambling is fully legalized and regulated, players are more willing to access online sites, as they know they are protected. A strong regulatory framework therefore drives market growth, as players and operators have peace of mind. For example, the UKGC “enforces strict regulations on fairness, security, and responsible gambling”, so it’s no surprise to see the UK on the list of the top gambling markets.
Countries where online gambling is not strictly regulated can experience more financial fraud, and players may turn to regulated offshore sites, thereby decreasing local gambling revenue.
Macroeconomic impacts
Online gambling is impacted by local macroeconomic conditions, like income and spending. Countries with a strong economy have more citizens with disposable income, therefore their online gambling markets are stronger.
Infrastructure developments and technological growth also impact the market, as reliable payment systems and fast internet are essential for online players.
The Future Of Online Gambling On A Global Scale
The online gambling market is seeing a significant period of growth and change, predominantly due to operators responding to changing consumer behaviors (i.e. adopting a mobile approach to gambling).
It is a multi-billion dollar industry, spanning across continents, with the UK and US leading the charge.
It is expected that mobile gambling platforms combined with crypto casinos will continue to enjoy growth as users seek improved convenience and accessibility. Technology is also expected to continue to evolve, resulting in more immersive gaming experiences at home.
Conclusion
The UK currently has the largest online gambling market in the world, and it is expected to reach $13.78 bn by the end of 2024, with a projected annual growth of 3.62%. That means that the market value will be $16.5 bn by 2029. Growth in the US is set at 9.77%, which means the US will overtake the UK by 2029 with a market value of $39.8 bn.
From these values, it is clear that the online gambling sector will continue to grow across the world. This growth is due to market trends, technological advancements, and increased accessibility to online casinos thanks to smartphones and mobile devices.