It’s estimated that the global online casino market will reach nearly $135 Billion in 2021. By 2026, that number could explode to nearly $160 Billion by 2026, with a compound annual growth rate of almost 3.5%.
Without a doubt, the online casino industry is breaking all barriers, both socially and legally. In the United States, online gambling is increasingly being legalized in individual states. However, online gambling has been legalized piecemeal; some states have online casinos only, and some only have online poker or sports betting.
As of 2021, New Jersey, Pennsylvania, Delaware, West Virginia, and Michigan have online casinos that have gone live.
It’s a Dynamic Technological Market
Factors such as increased social acceptance and lowered standards of living due to the global lockdown have contributed to the rising demand for online gambling. Moreover, rapidly growing technology, such as virtual reality hardware, has given the general public extremely immersive gambling games.
In addition, technology such as machine learning, artificial intelligence, and blockchain technology add to the growing online casino market. AI and machine learning deliver the exact gaming experience to the individual user and blockchain allow gamblers to play with cryptocurrency. Blockchain also provides an extra layer of privacy and security to online gamblers.
However, online gambling is restricted by certain governments, both within the US and internationally. This is a major hindrance to continued market growth. Moreover, licensing is often a long, drawn-out process. This has further slowed the growth of the online casino market.
Online Casino Market Segments
The global casino market is segmented based on region, type of gambling, and type of casino.
Casino market types are classified as online casinos and land-based casinos. Despite any perceived trends, land-based casino gaming is estimated to reign supreme during the forecasted period. The fact is, people, enjoy the diverse social experience provided by casino resorts.
Gaming market types are classified as slot machines, bingo-type games, lottery, table games, poker, and blackjack. Among all these, lotteries are expected to maintain the highest market share during the forecast period.
When it comes to regions, North America is anticipated to lead the world in growth. This is because online gambling is relatively new to the United States. On the other hand, Canada has welcomed online gambling for quite some time.
East Asia also has a robust gambling culture and Europe also has a well-established online gambling industry. However, the European market is expected to see major growth. Other regions of the world, such as the Near East and Africa, have cultural issues which prevent the wide acceptance of online gambling.
Recent Developments in the World of Global Online Gaming
UK-based 888 Holdings purchased Jet’s digital bingo portfolio of brands. This key move strengthened 888’s position within the UK’s online bingo market. Online bingo is big in the UK, compared to the US and Canadian bingo markets.
Evolution Gaming formed a partnership with the Canadian Bank Note Company, Limited. The partnership delivers live, online casino games as part of the national Canadian lotteries operated or supported by the Canadian Bank Note Company.
Esports Technologies has teamed up with leading casino game provider, Spinomenal. The agreement allows Esports Technologies to offer real money casino games on Gogawi.com, its international sports betting platform. Now, Gogawi users can place bets on sporting and esports events, as well as casino games on any device.
Other Factors Key to the Global Casino Market
The availability of high-speed internet brings online casinos and sports betting to every corner of the globe. Even villagers in the most remote corners of the world often have smartphones and high-speed internet. Furthermore, cryptocurrency breaks international banking barriers, making gambling online possible almost anywhere.
The desire for tourism dollars is also driving the popularity of land-based casino resorts. Across the United States, Native American Tribes have established luxurious casino resorts, even in states where gambling isn’t technically legal. Tribal casinos not only benefit the tribes, but also the surrounding communities.
On the other hand, cyberattacks, online security issues, and the player authentication process turn some players away from online casinos. Unfortunately, there are disreputable casinos online that do not pay their winners fairly. While gambling at home on a computer is convenient, it is not always as safe as playing at a licensed and regulated land-based casino. When it comes to playing at an off-shore online casino, resolving issues around getting paid can be impossible to resolve.
Local legal issues are also factors that limit the growth of the global casino market, but region by region, the market is definitely growing.