Global iGaming Market Expected to Double in 7 Years
Internet gaming is on a steady growth path. It has been since its inception. One of the latest studies predicts that growth to expand on a faster pace than other recent research has shown.
The latest forecast comes from a 120-page report entitled “Global Online Gambling Market 2022” from Research and Markets. It produced data to show that the compound annual growth rate looks to be more than 10%, which will nearly double the global igaming market worth from $65B in 2020 to more than $128B in 2027.
Accelerated Growth
As noted, the global online gambling market is lucrative and consistently growing. But something unexpected happened around the time that the market put a $65.32B value on it in 2020.
It was that little matter of the pandemic.
Not much benefited from the pandemic, as it shuttered most businesses around the world and created years’ worth of hardships for people and businesses alike. However, it did put a spotlight on the possibilities of the internet. Many businesses were able to transition to an internet-based business during the pandemic and keep that going ever since.
The gambling world was one of those industries. To be fair, online gambling didn’t replace the land-based market, as it is filled with casinos and racetracks, sports betting kiosks and lottery retailers, card rooms and bingo parlors. But it did provide steady availability of games to people around the world. And it helped sustain some gambling markets in a time when in-person betting was not a possibility.
Research and Markets determined that the global online gambling market was worth $65.32B in 2020. That number included much of the pandemic-led increase.
Even so, the researchers determined that the growth will continue. While no one expects another pandemic to result in the global shutdown that happened in 2020, companies were able to see the benefits of maintaining an online component to their businesses.
That is just one of the factors that leads to the conclusion that the igaming market will grow at a CAGR (compound annual growth rate) of 10.11%. This estimation puts the projected 2027 worth of the market at $128.154B, nearly double the 2020 value.
Global Online Gambling Market Report 2022: Featuring William Hill, Flutter Entertainment, 888 Holdings, Bet365 & Others https://t.co/YoeuoMV1pk
— iGamingRadio (@iGamingRadio) October 4, 2022
Factors for Growth
There are many reasons for the ever-increasing growth of online gambling.
The most obvious factor in this growth is the improvements to and expansion of technology. Gambling providers are constantly finding new ways to provide better and more realistic online experiences for players. And app development is growing in leaps and bounds.
In addition, more countries are finding ways to regulate said market, opening it up to more players around the world. Governments are deciding to regulate the industry instead of try to prohibit it. This gives them the opportunity to collect more tax revenue.
Another factor is the increasing number of partnerships between online and live gambling operators. Online poker and online casino sites have shown that they are complementary to land-based properties. When the two entities work together, it only enhances marketing and advertising capabilities.
There are also mergers and acquisitions that have pulled companies together. When Flutter Entertainment owns companies like PokerStars and FanDuel together, and they partner with (or outright purchase) media outlets like FoxBet and TVG, the revenue potential skyrockets.
Big mergers and acquisitions in recent years are also likely to have a multi-faceted benefit to all involved.
