The online gambling market experienced a meteoric rise during 2020 as a result of the global pandemic that forced people to stay at home and avoid mass gatherings in public spaces like physical casinos. In fact, the online gambling industry surged to reach a market value of nearly $77 billion dollars worldwide. This marked a 13.7% compound annual growth rate (CAGR) since 2015. Right now, analysts are looking at the upward trend of the industry and believe that the online gambling market will continue to experience a CAGR of 8.6% from 2025 to 2030. That means that it’s estimated the global online gambling industry will be worth well over $192 billion in 2030.
The Cause of the Rise
Of course, analysts can look at the COVID-19 pandemic of 2020 as one of the prime movers of the growth of the industry. However, there are also a number of different factors to take into consideration such as the economic growth of various economic markets. Various economic classes, particularly the middle class, have experienced an increase in spending power over the past few years. This translated to more disposable income that could go to recreational activities like gambling.
Another factor to look into is the growing adoption of technology all over the world. Specifically speaking, internet accessibility is a lot more prominent around the world, especially in developing nations in Africa and Asia. Since more people now have access to wireless internet connections, it’s a lot easier to indulge in online services such as those provided by casino platforms. Aside from that, mobile technology is becoming more accessible to the consumer public as well. There is a growing number of smartphone and tablet users all around the globe. And since casino platforms are developing more mobile-friendly versions of their apps that mean there is a higher incentive for people to indulge in online gambling. Some of the world’s most popular online casino games can now be played on mobile devices, therefore providing consumers with a higher degree of mobility and accessibility.
The rise of e-commerce also contributed to the growth of the online gambling market. In the past, there was still substantial trepidation on the part of the consumer public to engage in online transactions over any potential security and privacy threats. However, most of those fears have now been appeased and the e-commerce industry is continuing to grow every single day. There is now higher confidence among the consumer public to engage in online transactions with various websites. Digital payments are now becoming more commonplace and that’s why various virtual e-commerce platforms are now thriving.
Potential Hindrances to the Growth of the Industry
Even though the future of the industry looks bright, there are still a number of different threats that could potential hinder the growth of the online gambling market moving forward. Yes, technology is growing to become more sophisticated and accessible. This means that society is likely to learn more towards technologically-powered services and products. However, there is still also the matter of the global economy to take note off. The possibility of a global recession could potentially hamper the growth of the online gambling industry.
Aside from that, there are also various countries all over the world that are doubling down when it comes to the restriction of gambling regulations. There are various social and moral issues that complicate the process of legalizing gambling in these areas such as potential gambling addiction and internet security. However, for the most part, many nations around the world have very healthy and functional online gambling regulatory systems and structures in place.
Variance of Services
The sheer variance of services of the online gambling industry also contributes to its growth. There are the standard online casinos that offer games like slots, poker, and baccarat to users. However, there are also sports betting websites that contribute heavily to the growth of the industry. Earlier, it was mentioned that there is increasing growth in terms of mobile usage. But there are also developing technologies in the realms of extended reality that could potentially enhance the gaming experience of users.
Ultimately, there is no denying that the online gambling industry is poised to experience substantial growth over the next decade despite the uncertainties posed by the state of the global economy.