Online Gambling Market Revenue: Results of 2020
Frankly, it’s as if everything about 2020 revolved around COVID-19. It will be nice to know an industry that ended 2020 without any loss. In some quarters, the argument is that 2020 is the best year for the online gambling market. Somehow, the online gambling industry benefited from the closure of land-based casinos but not absolutely.
At some point, the online gambling market recorded some losses too. However, what matters is not how well the online gambling market started, but how it ended the year.
For instance, it appears the top online casinos 2023 by SA CasinoHEX are enjoying huge profits. Let’s see what transpired in the online gambling market over the years.
Overview of the Online Gambling Market 2018-2020
Before 2018, the online gambling market had to deal with several challenges, such as legalization, low awareness, security, etc. However, since 2018, the online gambling industry has witnessed steady growth. Below is a summary of the industry’s yearly revenue growth.
- 2018: France Online Gambling Authority ARJEL stated that bettors spent a whopping USD 436 million during the FIFA World Cup. The UK online gambling market doubled that amount, with bettors spending USD 3.2 billion to bet. Cumulatively, the online gambling market revenue for 2018 was about USD 50 billion.
- 2019: The online gambling market recorded some gains. Despite the numerous challenges, 2019 ended on a high note for the online gambling market. The entire revenue generated by the industry in 2019 was estimated at USD 55b.
- 2020: According to Grand View Research, the global online gambling market is expected to grow at 11.5 percent from 2020. This prediction is premised on the gains recorded by the industry in 2020 despite the COVID-19 pandemic. Presently, the global online gambling market revenue for 2020 is estimated at over USD 59 billion.
COVID-19 Pandemic: A Blessing in Disguise?
Considering how the pandemic damaged other sectors, it seemed like 2020 was bad luck. Surprisingly, the online gambling industry overcame the challenge posed by the pandemic. More so, with the closure of land-based casinos during the lockdown, the online gambling market enjoyed more patronage.
The adage “another man’s meat is the other man’s poison” seemed to have played out here. The lockdown benefited the online gambling industry. Do you realize that even after the lockdown was lifted in most countries, casinos and other entertainment industries remained closed? Learning was also hampered within this period because of the closure of schools. However, institutions adopted gamification to teach their students from home.
The fear of contracting COVID-19 may have also inspired some bettors to opt for online gambling. It is estimated that the highest number of new online registrations were recorded in 2020. Other factors may have also influenced the growth.
Elements Driving the Growth of Global Online Gambling Market
Apart from the pandemic outbreak, other elements are responsible for the growth in the gambling industry. It appears the pandemic has taken all the glory, but it’s challenging to wave these elements.
- Technology: In 2019, the United Kingdom Betting and Gaming Council (UKBGC) deployed new technology to reduce scammers’ activities. The technology is called Anonymous Player Awareness System (APAS). It identifies and locks out scammers.
- Regulations: Presently, countries are making new regulations to permit online gambling. For instance, Switzerland recently approved the operations of online gambling websites. The pandemic reduced patronage of tourists to their land-based casinos.
- Competition: The adverse competition among online gambling website operators is also another factor. Online gambling websites are inventing new ways to improve their services and lure new players.
Possible Set-Backs That May Hinder Online Gambling Market Growth
Notwithstanding the growth constantly recorded by the global online gambling market, some possible setbacks may hinder the growth.
- Cybercrime: For most prospective online players, cybercrime has made it difficult to give online gambling a try. Although the security measures employed by online gaming websites are getting better, it has not entirely curbed the challenge.
- Fake Apps: Hackers are creating fake apps targeted at the online gambling market. To download online gambling apps, go to their verified website, Google Play Store, or Apple Store.
- Minors and Gambling: The poor restrictions in some countries have made it possible for minors to access the internet and gamble. This will pose a challenge for the next generation if it is not curbed immediately.
Wrapping Up
There is no doubt that the online gambling industry has benefited immensely from the economic crisis created by COVID-19. Is this growth sustainable? It appears so, but if the possible setbacks outlined here are not taken care of, the industry may experience a downward trend.
Finally, this is the best time for prospective stakeholders to invest in the online gambling industry. Gamble responsibly!