NEWS
17
2023
Apr.
Industry News
Industry News
Online Gambling Market to Reach $305.5 Billion by 2027
Analysts at Technavio recently released a forecast report which has indicated that the online gambling market could be worth $305.5 billion annually by 2027.
According to the report, the online gambling industry was estimated to be worth US$155.51 billion in 2017. By 2027, the industry could increase by as much as $150.5 billion, at a compound annual growth rate (CAGR) of 11.03%, reaching a market value of $305.5 billion.
The analysts noted in their report that:
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 has also pointed out that the increased use of smartphones, complemented by more convenient payment methods, has made mobile gambling apps increasingly popular among the public. The report has predicted that smartphones will dominate the industry in the coming years.
Safety and Security Challenges
The analysts also stated that the industry as a whole is facing some major challenges, including “elevated data security issues” and “security and credibility issues for online gambling platforms”.
Online gambling websites have become prime targets for hackers and scammers in recent years. They obtain players' private information from various gambling sites, such as bank transaction information and credit card numbers, which are particularly vulnerable to hacking attacks.
Some online casinos operating overseas that do not have the latest network security technology in place will be much more susceptible to hacking attacks.
Issues like these are predicted to be the major stumbling blocks to global market growth in the near future. In addition, the report suggested that the “lack of fair and responsible gambling practices” may also further hinder market growth.
Asia Pacific will be the driver of market growth
According to Technavio's report, the Asia-Pacific region (APAC) is likely to be the main driver of market growth over the next four years. The report has included markets such as Japan, Korea, India, Australia and New Zealand, which could account for 39% of all growth in the online gambling market.
North America is another region that has the potential to contribute towards market growth thanks to the increasing legalization of sports betting in the United States as well as the launch of more iGaming markets in both the US and Canada.
According to the report, the online gambling industry was estimated to be worth US$155.51 billion in 2017. By 2027, the industry could increase by as much as $150.5 billion, at a compound annual growth rate (CAGR) of 11.03%, reaching a market value of $305.5 billion.
The analysts noted in their report that:
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 has also pointed out that the increased use of smartphones, complemented by more convenient payment methods, has made mobile gambling apps increasingly popular among the public. The report has predicted that smartphones will dominate the industry in the coming years.
Safety and Security Challenges
The analysts also stated that the industry as a whole is facing some major challenges, including “elevated data security issues” and “security and credibility issues for online gambling platforms”.
Online gambling websites have become prime targets for hackers and scammers in recent years. They obtain players' private information from various gambling sites, such as bank transaction information and credit card numbers, which are particularly vulnerable to hacking attacks.
Some online casinos operating overseas that do not have the latest network security technology in place will be much more susceptible to hacking attacks.
Issues like these are predicted to be the major stumbling blocks to global market growth in the near future. In addition, the report suggested that the “lack of fair and responsible gambling practices” may also further hinder market growth.
Asia Pacific will be the driver of market growth
According to Technavio's report, the Asia-Pacific region (APAC) is likely to be the main driver of market growth over the next four years. The report has included markets such as Japan, Korea, India, Australia and New Zealand, which could account for 39% of all growth in the online gambling market.
North America is another region that has the potential to contribute towards market growth thanks to the increasing legalization of sports betting in the United States as well as the launch of more iGaming markets in both the US and Canada.