The online age has revolutionized the gambling industry, for better or worse. In 2021, the global gambling industry was worth more that $60 billion. This figure will likely double in the next six to seven year. This is a rare glimpse of hope in these otherwise very difficult economic times. It is also a sector with a certain stigma, and it has its own regulations.
It’s no surprise that iGaming is almost creating its own marketing bubble in terms of promotion and SEO. This sector is extremely competitive with both established brands as well as new entrants eager to grab a piece of the predicted 11 percent CAGR. The exact location of this growth is not clear. Are there new markets emerging? More legal reforms in the US Are established markets expanding organically? Let’s look at the top economies that are important for online gambling.
In 2020, the US online gambling market was worth $2.2 billion. This is a substantial portion of the market. But, even more interesting is the astonishing CAGR of over 17 percent. The US market is growing faster than the global market.
We can see that the main causes of this are a combination regulatory changes and changing attitudes. More than half of the 50 states that have legalized some form of sports betting are now following the repeal of PASPA. It’s also a different activity for millennials, who make up the largest age group of online gamblers.
They do not place bets on sports in any scientific manner that attempts to predict the winner. They view placing a wager as an integral part of the experience. They place a bet on their team with the same enthusiasm as when they put on a game shirt before sitting down in front of the TV. This is considered a small game day expense and could even be rewarded if the team wins.
The UK was once considered the home of gambling. It pioneered regulation of land-based casinos and sports betting in 1960s. Online gambling is also regulated by the UK with the same sense of pragmaticity. The UK is home to some of the most well-respected casino companies. A license issued by the UK Gambling Commission represents the industry’s equivalent of a gold standard.
It is no surprise that the UK market is one the oldest gambling markets in the world. However, it is unlikely that it will grow at the same pace as the USA. Analysts expect an industry-wide CAGR of between 5 and 6 percent in the next few years, as online gambling continues its popularity despite stricter controls on TV advertising and sports sponsorship.
This is an interesting case. Australia does not generate any revenue from online gambling, and online casinos are prohibited. It is illegal to run an online gambling company within Australia. These restrictions do not apply to online gambling services.
Simply put, if you are an Australian casino enthusiast and want to know which online casinos offer pokies, can quickly do a quick search on Gamble Online. It will direct you to a variety of offshore online casinos that welcome Australian players. This is also true for those who wish to place a wager on sports.
These resources are vital as it allows Australian casino players to venture into unknown territories. Many offshore providers are attracted to the Australian market, which is a very important one. Its operation makes it difficult for financial experts to accurately assess its value. However, industry experts estimate that it could be worth up to $4 billion by 2021.
Scandinavia and Sweden have been a leader in the iGaming sector. The sector was worth more than $2.5 Billion in 2019. This is an amazing $400 per capita and accounts for more than 5 percent of the online casino industry worldwide.
In 2021, gaming revenue grew by five percent. This is not as impressive as in some other countries but it is still remarkable, especially considering the new gambling restrictions that were implemented during the pandemic. These restrictions were lifted January 2022.
Canada’s online gambling market is experiencing dramatic changes, just like its neighbor to the south. Ontario joined Saskatchewan, Alberta and British Columbia in opening its online gambling market on April 20, 2022. The online gambling industry generated over $1.2 billion last year. This figure is expected to quadruple in the next ten years.
It is possible that the market may be larger than it appears. Canadian authorities are well aware of the fact that Canadians have tended to prefer offshore providers over local ones for many years. They don’t impose the same restrictions on them as local license holders. This is something that regulators have been working hard to fix over the last couple of years. But old habits die hard and it will take time for the true size Canadian market to be revealed fully.
The majority of the revenue for this island nation came from tourism, until the growth of online casinos. Malta, with a population of 500,000, is not a major contributor to global gambling revenues. It is still a key player in the industry. Numerous iGaming companies have chosen Malta as their home base because of the favorable tax laws and other regulations.
Malta Gaming Authority is the leading licensing body in Europe and one of the most respected in all of Europe. In 2018, the nation released a revised Gaming Act that made it more attractive to casino operators. The new regulations simplify the licensing process and eliminate gaming tax, which can be avoided by double taxation.