The global legal online gambling industry is on a roll and according to a couple of reports in the last couple of weeks, that roll looks as if it is going to continue for the foreseeable future. COVID-19 has taken some of the credit for heightening the importance of the mobile wagering scene around the world, but there are a few other factors that have gambling as one of the biggest growth industries on the planet.
ResearchAndMarkets has taken a look into the global betting industry and has shown steady year-over-year growth until at least 2025. The Wall Street Journal has identified a similar pace of growth for the North American market.
Together, they give an immense sense of optimism for betting providers and the jurisdictions that house them that we will continue to see a boom in jobs, profits, and ultimately tax revenue off of the ever-growing industry.
ResearchAndMarkets took a look into the growth of the global online gambling market and determined a year-to-year Compound Annual Growth Rate (CAGR). Global growth in the industry from 2020 to 2021 is expected to hit a healthy 12.3% and generate $72.02 billion in 2021, up from $64.13 billion in 2020.
The firm calculated its projections for 2025 as well and identified a 12% overall growth rate for the online gambling industry between now and the end of 2025. $112.09 billion in revenues is expected globally over that span.
Considering that online gambling is destined to be the fastest-growing sector of the gambling industry thanks to the opening of new markets, new providers, and the emergence of online casino gaming, there is a school of thought that ResearchAndMarkets may have been a little conservative in their estimates. With how the industry is going now, 12% could be just a starting point for the gambling industry.
Wall Street Journal Report
The Wall Street Journal released a report last week that laid out its amended projections for the US online gambling industry. J.P. Morgan analyst Joseph Greff authored a report that has projections much higher than the ones that the industry as a whole had been banking on for the last few years.
Greff’s numbers are seen as a necessary and logical step in the analysis of the US online scene. The incredible pace of growth has forced analysts to relook at the business and revamp the potential numbers.
Greff’s projected numbers take the expectation for the US legal sports betting industry from $12.2 billion in revenues to $19.3 billion by the time 2025 rolls around. In 2021 alone, Greff’s projections have gambling revenues coming in at $4.4 billion – up from $2 billion that the industry had been hanging their hats on prior to the Wall Street Journal story.
The Reasons for the Increased Projections
COVID-19 and its related retail casino closure get most of the headlines when talking about the spike of mobile wagering apps. But it is the sheer growth of the industry that has more to do with the increased projections than coronavirus.
New markets are opening up and new providers are coming on board, creating intense competition for market share and ultimately a “bettors’ market”. The mainstreaming of the previously taboo industry in the US has driven overall acceptance and the ultimate increase in client sign-ups at the country’s sportsbooks.
Then there are the heightened efforts to launch internet-based casino games in jurisdictions not only in the US but also around the world. Internet casinos will significantly impact betting activity globally and in the US markets, where it is available in just five states as of now.
No Stopping Now
The legal sports betting industry isn’t about to slow down anytime soon. Canada is about to step on the pedal of their own platform, more states in the US are coming to market and other countries around the world are showing a willingness to adopt their own industries.
It wouldn’t be a shock to hear of analysts amending their projections again before 2025 – online gambling is growing that fast. Until then, everybody, from betting providers to gamblers to the jurisdictions that will ultimately benefit from the tax revenue generated will be enjoying the ride.