According to a report by a leading market research company with global coverage widely known as Technavio, the online gambling market will grow at a compound annual rate of 11.03%. This growth is driven by mobile gaming, as smartphone expansion continues to rise and consumers show greater interest in online gaming and hobbies such as casinos, sports betting, and fantasy sports.
Casino games, both real money and social, are gaining momentum, leading to higher engagement, and smartphones now offer easier payment options which dovetail nicely with online play. However, the industry still faces risk factors, such as security and credibility issues, as differentiating between regulated and non-regulated platforms could be a challenge for consumers. Data security issues are also a concern.
Geographically, the Asia-Pacific region is expected to notch up the biggest growth, with markets such as India, Japan, Australia, and South Korea all shaping up to pick up the pace of gambling. North America is also poised to explode in terms of online gambling, with iGaming gathering steam and placing the region second to Asian-Pacific.
Desktop gambling is similarly expected to be a contributor through 2027, but Technavio expects to see stagnation of the rise by then. The logic is that users will begin switching to mobile almost fully when it comes to gaming and gambling. Another big prediction for the sector is that virtual reality gambling will slowly start to encroach on the mainstream as the entry-level cost continues to fall off. VR gambling is expected to be worth $1.74 billion in 2025.
Artificial intelligence should also play a similarly important role in the development and growth of the market. AI is currently used to identify consumer trends and build products that are intended to help protect consumers from excessive gambling. The technology will help shape the industry as a more sustainable business and propel it forward, Technavio estimates.
Unfortunately, the Gambling Market continues to lag behind the Gaming Market. The latter was valued at USD 198.40 billion in 2021 and is projected to grow at a CAGR of 8.94% over 2022-2027, reaching USD 339.95 billion by 2027. The COVID-19 pandemic and subsequent nationwide lockdowns led to an influx of people seeking entertainment through online gaming platforms. This surge in demand has resulted in significant growth in both the number of players and revenue generated within the video gaming industry. The main reason why with many similar factors of growth, gambling is still behind is outdated strict legislation in many countries.
However, gambling industry still faces some challenges that concern security, credibility, and data protection. Differentiating between regulated and non-regulated platforms could be quite an issue for consumers. The industry should address these challenges and provide consumers with a safe and trustworthy online gambling experience to ensure continued growth.