Online Gambling Market Expected to Reach £63 Million by 2025
The advents of the mobile casino gaming and online sports betting sectors are expected to increase the capital annual growth rate (CAGR) of the online gambling market to 9.8% between now and 2025.
That means that the industry will see roughly 10% growth annually over the next 5 years, which would put the overall market value at around £63 million. Many of the gains have been due to the widespread adoption of eSports gaming in countries where online gambling has been made legal, such as the UK, France, Germany, and Italy.
Mobile Apps Leading the Way with About 65% of the Market Share
Mobile-based gambling is the fastest-growing sub segment, accounting for about £21 million of the annual market share. That’s equivalent to about 65% of the current market value as of 2019. This segment is projected to expand at a CAGR of 12%, which is 3% faster than the industry-wide average. This growth is being driven by faster and more powerful mobile devices along with the development of user-friendly mobile casino and sports betting apps, not only for the act of gaming and gambling itself, but also for related tasks like account management, research, and the due diligence required to make entry as a new user. For example, check out this Starspins review to see how platforms like Aloha Bonus are making the casino comparison process easier.
Millennials and Generation X are the Biggest Online Gamblers
Demographically, the market is occupied mostly be individuals within the age range of 23-54 years, which encompasses Generation X and Millennials. In the past two years, a new generation has become eligible to start playing and betting – Generation Z. With the legal age requirement for online gambling being 21 in most places, Generation Z has only been able to join the fun since 2017. However, by 2025 the third-generation online gamblers will have 8 years of existence in the sector, playing a major role in the expansion of the industry as a whole. As future generations continue to become increasingly tech-savvy and mobile-centric, we could see a world in which online gambling becomes a nearly ubiquitous pastime.
Asia Pacific is the Largest Regional Market
The Asia Pacific region – which includes the fast-growing markets of India, Singapore, Indonesia, and Thailand – is the largest regional sector in term of the number of users. However, Europe has experienced the fastest growth rates and is closely ranked with North America in terms of overall market share. Beyond Asia, Europe, and North America, there are some developing markets in South America including Argentina and Brazil. With the size of the market being directly connected to the geographical legality of online gambling, it’s likely that the market will grow substantially as more countries continue to legalise internet gambling. By 2030, some of the first online gamblers from Generation Alpha will start to join online casinos, eSports tournaments, and sports betting platforms. With 4 generations fuelling that market at the same time, it’s likely that the industry will be at least 4 times larger than it is today.
Online Casino Gambling vs. eSports vs Sports Betting
There are many different ways to gamble online, but the three main competing sectors are sports betting, eSports, and online casino gaming. The sports betting sector currently holds the majority of the market share. Obviously, this is the easiest and most straightforward form of online gambling, as you simply need to place a wager and wait to see who wins. Playing eSports tournaments or online casinos provides a bit of a challenge that the gambler actually needs to take an action to facilitate the bet. Thus, many analysts have speculated that sports betting has become the most popular type of online gambling due to the sheer convenience of being able to focus merely on the betting and letting the athletes do the hard work.
A Tremendous Investment Opportunity
If you were to examine the financial reports and profits of some of the industry leading companies like Bet365, William Hill, 888Holdings, and Ladbrokes, you’ll see that some massive fortunes have been generated in this industry. While the average entrepreneur probably won’t be able to launch an online gambling company that will compete with the aforementioned industry leaders, the massive scale of the industry means that even the small fish can become wealthy.
As a result, we’re seeing an explosion in the number of new affiliates who are promoting online casinos and sports betting platforms. Right now is a very unique time in the history of online gambling, because there are still opportunities to become established as an authority. As the industry continues to fully mature and all the big players strengthen their strongholds, taking any meaningful share of the market will become increasingly difficult for industry newcomers.