Online gambling: $ 160 billion in revenue forecast by 2026
Online gambling: $ 160 billion in revenue forecast by 2026
The global gaming market is expected to reach $ 160 billion in 2026. This is the result of the market research company Global Market Insights. In this study, everything from online casinos to online poker to online sports betting is rated as gambling. The most important finding: There are still many growth markets for gaming providers. From a European perspective, it is not immediately apparent at first glance that the online gaming market still has huge potential for growth. Almost every country in Europe already has online casinos, online poker and online sports betting. There is also a large market for online gambling in Germany. Politicians are currently taking this fact into account by adopting a new State Treaty on Gambling, which also includes online gambling providers. So far, only land-based gambling has been regulated in Germany.
Online gambling market underdeveloped in many regions of the world
In Europe, online gambling has grown rapidly over the past two decades. In the meantime, however, there is more of a tendency to slow growth through national regulations. Sweden, for example, recently introduced new regulations for online gambling. The Netherlands and Germany will fully regulate online gambling for the first time next year. Even so, most gambling experts expect the European online gambling market to continue to grow, albeit not at the rapid pace of recent years. But in other regions of the world the situation is completely different. The most important future market for many gaming providers is likely to be the US market. In the USA, many important decisions for the opening of the online gaming market have taken place in recent years. Online sports betting is already possible in some states. There are also online casinos. Online poker is also re-approved in some states after a long-standing ban. There are many clear indications that online gambling in the US will grow rapidly in the next few years. Experts are already predicting that the US market will be at least as large as the European market.
The American market is without a doubt the most attractive growth opportunity for gaming operators looking to expand. That is why there are many European companies that are currently trying to gain a foothold in America. From William Hill to GVC Holdings there are some strong players who have shaped the market in Europe in recent years and are now trying to gain a significant market share in the USA. The chances are good due to the strong expertise and the great economic opportunities of these providers. The US market is not the only exciting opportunity for gambling providers. There are also many countries in South America that are slowly starting to expand online gambling. Growth in South America is unlikely to be as rapid as in the USA, as the infrastructure and legal framework in many countries are not optimal. But there is no doubt that there are also great growth opportunities in South America. There are also many countries in Asia that are still underdeveloped when it comes to online gambling. In particular, the western-oriented Asian countries could become interesting destinations for European gaming providers. The entire Pacific region still has a lot of potential when it comes to online gambling. In Australia, for example, the expert is assuming that there will be great growth. But it is not only the many regions of the world that still have some catching up to do in online gambling that enable an optimistic forecast. There are also other important factors that will play a role in ensuring that online gambling continues to grow over the next few years.
Digitization is advancing worldwide
An important prerequisite for online casinos and other online gambling offers to function at all is a sensible infrastructure. If the internet doesn’t work well, an attractive online casino won’t help either. It is therefore of crucial importance for the growth of online gambling that the infrastructure in many countries will improve significantly over the next few years. For the first time ever, many countries will have the technical prerequisites to enable online gambling on a broad scale. In Europe, all countries are now relatively well positioned when it comes to Internet connections. Germany is mediocre at best, but even in Germany every household now has the opportunity to visit an online casino without having to worry about the internet connection. The situation could be better, however, especially when it comes to modern casino technologies with VR technology. But if significantly more people around the world will have good internet connections in the next few years, be it stationary or mobile, more people will also have the opportunity to use online games of chance. Experience from Europe shows that with the technology available, so do the offers. Today’s variety of online casinos has also arisen in recent years because there are cheap and fast internet connections for almost all citizens. If this requirement is met in other countries, the online gambling industry can flourish. Of course, no country is expanding the Internet infrastructure to enable online casinos. But since many industries depend on fast internet, casino operators can benefit from the fact that digitization is advancing overall.
The proliferation of smartphones could also play an important role in the growth of the online gaming market. Almost every adult around the world now has a cell phone. But not everyone can afford a modern smartphone that is very well suited for online casinos. Laptops and desktop computers are even less common. The good news for the gaming providers: Market penetration will increase significantly in all areas. The number of people with high-performance cell phones, laptops and desktop computers will increase significantly, especially in countries that are economically booming. This creates completely new customer groups. A major advantage of the gaming industry should not be ignored at this point: The demand for games of chance is huge worldwide. This can be seen very easily from the fact that there are casinos of some kind almost everywhere. When legal gambling is not available, the black market thrives. Participating in games of chance is important to many people. This can also be observed in Germany. It is not just the numerous casino fans who are out and about in gambling halls and casinos. The lottery players too are ultimately nothing more than gambling fans who enjoy challenging their luck with a small or large stake. Ultimately, the huge demand for games of chance is the most important basis for great growth in the global gaming market. In the case of online casinos, however, there are also various technical requirements that are not yet met in all countries. But that’s increasingly changing, and that’s why the Global Market Insights study concludes that the gaming market will reach an impressive $ 160 billion in 2026.
The quality of the offers will be significantly better
The online gambling market is still quite young, not only in terms of its expansion, but also in terms of technical quality. In the next few years the offer will improve significantly in many areas. That too will help increase sales. Virtual reality could become a very big topic in online casinos. It also makes it even easier to make deposits and withdrawals. This has long been a major obstacle for many gambling fans who wanted to gamble online. There are now good payment methods in online casinos. But there is still room for improvement in terms of comfort and speed. It is only in the last few years that online casinos have become so attractive that they have become a real alternative for typical arcade and casino visitors. Live casinos are a very good example of this. It is now possible in online casinos to play roulette, blackjack, poker, baccarat and many other casino games live with a real dealer. In the past, that wasn’t even imaginable. The quality of the live dealer games is now very good. But especially in this area, for example, virtual reality could once again raise the customer experience to a whole new level.
The gambling market has seen many business startups over the past two decades. That, too, could play an important role in growth over the next few years. When a very young market grows, many new companies emerge that first have to develop the necessary expertise. However, this expertise has long been available at many companies and corporations currently on the market. There is now a great deal of experience, also and especially in the form of employees, in the European gaming industry. The great experience will help companies and corporations to optimize their expansion into other regions of the world. If the legal framework conditions are improved as hoped, the market in the USA will grow significantly faster than in Europe. This is mainly due to the fact that the European gaming providers have the experience of two decades of rapid growth. There are many good reasons to believe that online gambling will more or less completely replace land-based gambling at some point. But it will probably still take one generation or the other before digitalization has taken place completely in our heads. But online gaming providers will see another big boom in the next few years. There are also some large companies and corporations in Germany that will benefit from this. The well-known Gauselmann AG, for example, is already positioned internationally and will probably benefit considerably from further growth in the global gaming market. But there is also great growth potential for many small companies.