Gambling (also known as betting or gaming) is the staking of something valuable ("the stakes") on an event with an uncertain conclusion in the hope of gaining something valuable. Gambling, thus, necessitates the presence of three elements: consideration (a sum wagered), risk (chance), and a prize. The gaming industry is a term interchangeably used for gambling industry. The term gaming is more preferred by companies operating within the gambling market. As for them it sounds sort of more legal to be known as a gaming company instead of a gambling company. In 2021, the global gambling market was valued at US$439.5 billion, and is probable to reach US$621.3 billion by 2027.
The rise in adoption of online gambling via mobile and computers coupled with growing adoption of digital and mobile payments which has made payment procedures easier for users and online players, would impact demand for gambling market in the coming years. The gambling market is projected to grow at a CAGR of 5.94%, during the forecast period of 2022-2027.
Market Segmentation Analysis:
- By Product Type: The report splits the global gambling market into five components: Casino, Lotteries, Gambling Machines, Betting and Other. Casino segment held around 35% of the market share in 2021. Numerous countries gradually looking to make gambling through casinos a legal activity by bringing under the tax umbrella is one of the major factors that encouraged casino in gambling industry.
- By Platform: According to the report, the global gambling market is segregated into three algorithms: Landbased, Computer and Mobile. Landbased segment accounted for 85% in the gambling market in 2021, due to the new regulatory acts adopted by many countries paved favorable conditions for the growth of landbased gambling market.
- By Region: According to this report, the global gambling market can be divided into four major regions: Asia Pacific (China, Japan, India and Rest of Asia Pacific), North America (The US, Canada and Mexico), Europe (Germany, UK, France, Italy, Spain and Rest of Europe) and Rest of the World. The Asia Pacific gambling market enjoyed the market share of around 38% in 2021, primarily owing to an increase in the growth of the urban living standards along with an increase in the growth luxurious gaming options.
- While the China gambling market held the maximum share in the Asia Pacific market as in general, gambling in China is illegal. Residents of the country can try only one gambling activity, the operator of which is the state itself - the lottery. As for other activities, involving betting, they are held in two gambling zones - Hong Kong and Macau.
Global Gambling Market Dynamics:
- Growth Drivers: The increasing internet users is creating an ideal situation for the rapid proliferation of online gambling platform types. Increased internet penetration benefits the gamers do not have to be physically present at the venue for online gambling, making it more convenient for the gamer. Further, the market is expected to increase due to hiking penetration of smart devices, growing global population, improving spending capability globally, legalization of gambling, etc.
- Challenges: The lack of infrastructure such as unstable power supplies, insufficient communication networks, and inadequate or unreliable internet connectivity with limited bandwidth as well as a lack of human resources with the necessary technical expertise in using internet. The other challenge that gambling market face is negative perceptions on gambling, etc.
- Trends: A major trend gaining pace in gambling market is potential of augment reality (AR) technology in online gambling. For casinos, this technology could introduce a range of new features, combining the best elements of live gaming and software with overlays and virtual reality add-ons that make for an even more engaging experience. More trends in the market are believed to augment the growth of gambling market during the forecasted period include emergence of bit coin gambling, cloud gaming, etc.
Impact Analysis of COVID-19 and Way Forward:
The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the gambling market in 2020 as governments globally imposed lockdowns and restrictions have had an impact on land-based casino operations. Several land-based gambling establishments, including bingo halls, casinos, clubs, pubs, horseracing tracks, poker rooms, and lottery merchants, were forced to close. Due of the shutdown, many gambling market participants migrated to internet gambling. Because of greater free time and boredom, many people have turned to online gambling. With the cancellation and delay of major sporting events, internet gambling activity has decreased. However, following COVID-19, the industry has seen an increase in online gambling due to the relaxation of lockout limitations and the restoration of live sports events internationally.
Competitive Landscape and Recent Developments:
The gambling market is fragmented with the presence of a large number of players majorly dominating worldwide. Key players of the gambling market are:
- International Game Technology Plc. (IGT)
- Flutter Entertainment plc.
- Light & Wonder, Inc. (Formerly Known As Scientific Games Corporation)
- Galaxy Entertainment Group
- Caesars Entertainment, Inc.
- Las Vegas Sands Corp.
- 888 Holdings
- MGM Resorts International
- Wynn Resorts
- Entain Plc.
- Evolution Gaming Group
- Draftkings Inc.
The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in August 2021, DraftKings Inc. and Golden Nugget Online Gaming Inc. have reached an agreement in which DraftKings will acquire Golden Nugget Online Gaming in an all-stock transaction. DraftKings was able to take use of Golden Nugget's well-known brand, iGaming product experience, and combined database of more than 5 million customers as a result of the acquisition. Also, in July 2021, The FanDuel Group, which is owned by Flutter Entertainment PLC, has launched FanDuel Casino in New Jersey and Michigan. Customers may now play live dealer blackjack, roulette, and baccarat at FanDuel Casino.
Table of Contents
1. Executive Summary
Executive Summary
The global gambling market can be segmented on the basis of product type and platform type. The market can be bifurcated into casinos, lotteries, gaming machines and betting on the basis of product type. On the basis of platform type the market can be sub segmented into landbased and online categories.The market observed moderate impact due to COVID-19 pandemic. Although, the global gambling market is forecasted to showcase positive growth through the forecast period (2021-2025). The market growth is estimated to supported by various growth drivers such as increasing spending capability, legalization of gambling in countries such as US, rising penetration of smart devices, hike in internet penetration, and overall increase in global population especially within those lying in between the ages of 20-64 years.
The market is also confronted by some challenges such as the negative perceptions surrounding the gambling market and lack of internet connectivity in developing countries. Emergence of bitcoins, growing number of mergers and acquisitions (M&A), use of augmented reality to enhance gaming experience and cloud gaming are some of the major trends existing in the market.
Companies Mentioned
- International Game Technology Plc. (IGT)
- Flutter Entertainment plc.
- Light & Wonder, Inc. (Formerly Known As Scientific Games Corporation)
- Galaxy Entertainment Group
- Caesars Entertainment, Inc.
- Las Vegas Sands Corp.
- 888 Holdings
- MGM Resorts International
- Wynn Resorts
- Entain Plc.
- Evolution Gaming Group
- Draftkings Inc.
Methodology
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