The gambling industry is a behemoth that does not seem to slow down anytime soon. As it grows and serves more users, all industry stakeholders are looking for new opportunities to invest in. How is the gambling market faring?
What should stakeholders know about the industry? In this article, we will take a brief look at the market report on the gambling industry. We will examine the market size, strengths, weaknesses, and areas of opportunity.
Here is the global gambling market report you should read in 2024.
Market Size
The size of the size of the gambling market has been helped in part by the rise of online casinos.
This rise has been made possible by the penetration of the internet and smartphones. In 2022, the global gambling market was around $440 billion and was projected to reach $765 billion in 2027.
Most of this growth will be driven by the expansion of gambling in emerging markets like Africa, South America, and Asia. In addition, the inclusion of more women in gambling and its legalization in new regions will also improve the growth of the industry.
With this growth has come an increased need for tighter security among online casinos, as they must protect the influx of new players into the industry.
Gambling Market Strengths
The gambling market is blessed with several strengths that increase its global relevance and contribute to market growth.
These strengths are:
Online Gambling
Online gambling is powered by the internet and is the most dominant form of gambling available today. Online gambling enables players to access their favorite games without leaving the comfort of their homes.
The global pandemic of 2020 also helped to further improve the penetration of online gambling by at least 20%, as more people were forced to access their favorite casino games through online services.
New Technology
New technologies like AI (artificial intelligence), machine learning, virtual reality, and mixed reality are helping gaming providers give new experiences to gambling.
The introduction of digital payments and mobile gambling has also made it easier for seamless gambling over the internet. As the gambling experience improves, new players are attracted to the gambling scene, which fuels growth.
Revenue Flow
The gambling industry will have revenues of around $516 billion in 2023 and a compound annual growth rate (CAGR) of 4.5%. Its projections are even higher, as the industry is set to reach around $700 billion in 2027.
Gambling has a strong revenue generation and business model, which is one of its biggest strengths.
Gambling Market Weaknesses
There is no market without chinks in its armor. Here are some of the weaknesses the global gambling market faces.
Negative Perception
There is a generally negative perception that follows the gambling industry.
This image is not helped by some of the problems that are commonly associated with gambling, such as debts and problem gambling. The stigma surrounding gambling will significantly slow the growth of the industry as more people will feel reluctant to start gambling.
Regulation
Gambling is a highly regulated industry, as governments and regulatory bodies have imposed stringent requirements that gambling operators must follow.
This is a block in the pathway to the growth of the industry, as it creates a barrier to entry for new players and slows down the growth of old players. Furthermore, regulatory compliance is time-consuming and expensive for operators.
Growth Opportunities
There are opportunities for growth abounding in the gambling industry. These opportunities are important for the growth of the gambling industry, and they include.
Mobile Gambling
A 2020 survey determined that 47% of all online gambling activity was done on a mobile device.
Mobile gambling is popular because of its ease of use and accessibility. Providing solutions and gambling innovations for mobile users will unlock the market and allow new users to participate.
Emerging Markets
The emerging markets of Africa, Asia-Pacific, and the Americas offer potential for new markets.
In addition, the highly regulated markets of Europe and the US also offer possible expansion pathways for gambling. As regulations are relaxed and internet penetration increases, these markets will become ripe for growth and expansion.