It isn’t much of a secret anymore as to just how fast the global online gambling market has grown in the last couple of years. Sure, COVID-19 made it so growth in the retail sector was virtually impossible but there are other factors that have contributed to the explosion of not only online gambling users but providers as well.
According to a new report by ResearchAndMarkets, growth in the industry isn’t expected to slow in the near future. In fact, it is expected to expand within the rash of new competition in the market. The mainstreaming of sports betting into global society and its ties to the overall sports viewing experience cannot be discounted with the new data coming out.
ResearchAndMarkets expects that growth in the global industry will be spearheaded by exploding North American markets.
About the Pace of Growth
ResearchAndMarkets, in a study about the potential of the global online gambling industry, showed just how large and impressive year-to-year global online gambling Compound Annual Growth Rate (CAGR) will likely be. The company expects CAGR growth in the sector from 2020 to 2021 to hit 12.3%, from $64.13 billion in revenues in 2020 to $72.02 billion in 2021. By 2025, that market is expected to hit the $112.09 billion revenue mark thanks to a Compound Annual Growth Rate of 12%.
Online betting is expected to be the fastest-growing segment of the wagering industry. Buoyed by the experience and client surge it got during the COVID-19 lockdowns, mobile betting apps are the bread-and-butter of such US Heavyweight states as New Jersey where over 90% of the monthly haul comes from online wagering.
New Markets, New Projections for Global Internet Betting
It wasn’t just COVID that thrust the mobile betting platform into new territory. New markets opening up in the US for instance has been a boon for the global market. New companies are coming into the global sports betting scene along with the new jurisdictions, creating more competition and ultimately more gamblers using their sites.
Sportsbooks have been moving toward more complete platforms as of late as well, including online casinos as part of their offerings. At the expense of brick-and-mortar casinos, online casinos are expected to become a huge contributor to the online gambling numbers between now and 2025.
Study Focussed Us Scene
Last week, Wall Street Journal contributor and J.P. Morgan analyst, Joseph Greff published a report that amended the forecast for the potential revenues of the US legal sports betting and igaming industries between now and 2025. Greff’s necessary study increased the revenue projections for the US legal sports betting industry for the period between now and 2025 from $12.2 billion to $19.3 billion. 2021 revenues alone in his report showed an increase from $2 billion in profits this year to $4.4 billion.
The pace of growth is certainly impressive and has caused analysts to revamp their thoughts on the potential of the industry. The US market is just a sample size of what is going on in the broader global gambling market. Legal betting is cropping up around the globe, is welcoming new providers and bettors looking to take advantage of the scene, and is now one of the fastest-growing industries in the world.
Where Does It Stop
The two studies cited are just projections. They have already had to be amended, and chances are that before 2025 they may have to be again. It speaks to the unforeseen pace of growth for the global legal sports betting industry.
Increases in global sports betting activity have become the norm, not the exception giving providers and ultimately the jurisdictions that depend on the tax revenue generated from the legal platforms a lot to look forward to in the next few years. Growth was expected – the current pace of growth on the other hand has caught a few industry insiders off guard.