In the recent past, global online gambling has been on the rise, and the growth forecast for the future is astronomical. With a market size of over $55 billion in the year 2020, the Industry is set to hit a $125 billion figure in the year 2026.
This expansion is a result of rising internet users, better use of mobile phones, and technology as a tool, which includes 5G, VR, AR, AI, and blockchain. For instance, segments such as sports betting and casino games are in the frontline, elaborated by key partnerships and friendly interfaces.
Among all the regions, it is North America that is expected to grow at the fastest rate because of the regulatory changes and technologies. According to the North American mobile user forecast data, it is expected that the number of users will reach 352.2 million by 2028, with a constant increase in user penetration ranging from 2.5% (2024) to 3.0% (2028).
It also determined that the majority of online gambling happens at home, although 20 % of users gamble outside their homes. Interestingly, 44% of young adults, those in the age bracket 18-24, prefer outdoor gambling as compared to less than 2% of the old people in the age bracket 65+.
Online Gambling Market Segmentation
Sports betting, casinos, poker, bingo, and others such as lotto, blackjack, roulette, slot, and virtual football betting are some of the most popular categories in the global online gambling markets. Out of these, the two major categories are sports betting and online casinos.
Online betting, particularly focusing on sports betting, is expected to rake in almost USD 50 billion in revenues by 2024, while online casinos are expected to rake in USD 39 billion, according to Statista Market Insights. With regard to location diversity, this market is very diverse, with many games under the casino category and many sporting events for sports betting.
Sports betting makes up the largest part of many big markets, including the U. S, Europe, and South America, because of the most popular sports, including football, soccer, and basketball.
With the introduction of mobile phone devices, especially smartphones, and the rise of mobile gaming, this aspect has improved incrementally with the introduction of easy betting and the ability to make payouts online at the palm of their hands. Therefore, this segment is expected to reach nearly USD 50 billion in 2024.
Online casinos also take a considerable portion of the total Internet gaming market, which is available on devices such as phones, tablets, and PCs.
The sector is likely to expand significantly up to 2030 through preferences for casino games and the use of mobile devices. Also, technology breakthroughs like AI are expected to improve the user experience and consequently fuel market gains.
Overview of Online Gaming Regulations
Policies and regulations are important in the online gaming industry any operator must ensure that he or she complies with them to avoid cases of fines and or closure of business. It is obligatory to follow the requirements of the above regulations to perform legally and safely.
Some significant aspects that have to be met include protection of the endangered individuals through the application of age restrictions which are normally between eighteen to twenty one years of age based on the cultural and legal practices of the respective locale.
Licensing is compulsory in all the respective markets, and the licensing conditions include many aspects regarding player’s protection, taxes, and advertising, among others, although the procedures relevant to licensing may differ from one country to another deliberately.
Another important part of the regulation is dedicated to the promotion of the players’ and the general public’s health. Operators have to take action on problem gambling, excluding measures, and operate ethically such as systematic work on age verification to keep under-aged people out of online betting.
Stringent measures that lock out fraudsters, cheating, and money laundering are crucial and can employ techniques that employ technology such as biophysical identifiers, artificial intelligence, and liveness detection.
Desktop vs. Mobile: The Device Disparity in Online Gambling
The market of online gambling is clearly divided into two categories – the market of desktop and mobile platforms, sharing specific features and conditions.
The more significant and modern screens that produce more interactive interface elements that certain gamers appreciate are part of desktop gambling, a relatively modest and gradually diminishing share of the overall iGaming market.
As there is constant development of tablets and smartphones, there will be a disappearance of the trend of gambling on the desktop. On the other hand, mobile gambling takes the largest market share with about 85 percent of the gambling players using their mobile phones to gamble online.
The trend is constant enhancement in the processing capacity and usability of mobile devices. Mobile platforms, however, are considered to be even more strictly regulated owing to the threats of security breaches and the presence of underage players’ gambling.
Also, the mobile wallet and cryptocurrency transactions imply the conditions different from the traditional banking system. There are differences in security threats in regards to specific types of devices: desktops are more likely to fall for spoofing, while the probability of a theft in the case of mobile devices leads to criminal activity.
Mobile platforms are constrained by the fact that they will be subjected to more stringent regulations than their other platforms due to higher perceived security risk and the fact that children may access gambling websites, again, legislation is not very dynamic to the changes that happen in technology.
Fractionalized ownerships and direct betting between two people using coins that can be popular in 2024, although there could be obstacles regarding the legislation. Cryptocurrencies’ role in iGaming is increasing, and this shows that the business is evolving.
Prospects for the Online Gambling Market
The size of the online gambling market is rising dynamically and will continue to grow due to technological and legal improvements and peoples’ shifting preferences. The market is expected to grow to USD 138.10 billion by 2028 and is thus considered to have immense growth prospects for actors in the market.
The general major driving forces towards this growth include internet usage, a shift towards the use of mobile devices, culture, and the legalization of other markets for online gambling.
Many of these rules are pertinent to operators, who find it vital to keep abreast with changes in regulations and adopt proven hi-tech technologies. Mobile usability and security to prevent fraud and underage betting are two major strategic opportunities.
Technological development and the growth rate of the market translate to faster growth for investors who would consider investing in the market. Venturing in industries that focused on R&D and the adherence of the laws might prove to be fruitful.
For the consumers, understanding the measures undertaken in safe gambling and the regulatory measures are often beneficial for safety within the gambling sphere. Enlisting solutions that provide powerful protection and contribute to the anti-gambling program’s promotion is rather advantageous.
