What is the Online Gambling Market Growth?
Online Gambling Market Growth
The growing number of smartphone users worldwide is a primary driver for the growth of the global online gambling market. This high penetration of internet usage among individuals and declining smartphone prices have lowered the barrier for users to access online gambling. Additionally, smartphones have the added benefit of supporting numerous online payment solutions. This is leading to an increased number of users switching from desktop computers to mobile devices. Similarly, the availability of mobile applications for online gambling is another key driver for the growth of the market.
As a result of these factors, the demand for online gambling is expected to increase at a CAGR of 11.49% during the forecast period. While the demand for online gambling is expected to increase during the forecast period, some risks may hamper its growth, such as the COVID-19 pandemic. In addition, countries worldwide are increasingly enacting legislation to prevent the spread of the disease. Additionally, the restrictions on mobility and the emergence of social distancing are expected to affect land-based casino operations. Several players are also moving their offerings to the internet.
Growing consumer spending power, technological advancements, and increased awareness of online betting are boosting the global online gambling market. Increasing numbers of young consumers and the popularity of gambling among college students is propelling the growth of the market. With these trends, consumers are increasingly choosing online gambling to enjoy fun and win money. While online gambling platforms are still relatively small, their market is projected to grow at a significant CAGR in the next few years.
What is the Online Gambling Market Growth?
Despite the positive factors, the growth of the online gambling market is being hampered by a global recession. The global economy is facing difficulties due to a coronavirus pandemic. The global economy is expected to slip into recession, which will further slow down its growth. A recent study from the United Nations World Economic Situation and Prospects estimates that the global economy will lose $8.5 trillion over the next two years, wiping out gains made over the past four years. This will also push 34.3 million people into extreme poverty.
The global online gambling market will grow by more than double during the forecast period. This is due in part to security concerns. The majority of online gambling websites lack transparency in cash prize payouts and do not have fair casino gaming standards, which reduces the credibility of gambling operators and discourage new users from participating in gambling games. Aside from that, the industry is regulated, which makes it even more difficult to compete in the market.
Competition in the online gambling market is high, and in order to remain competitive, companies must offer quality service and a good user interface to attract new customers. Good customer service and user interface are essential in winning the trust and loyalty of users. Global gambling companies are also expanding through mergers and acquisitions, which improve their brand portfolios and gain access to new markets. The growth in the industry is driven by a variety of factors, such as increased digitalization and increasing regulation in several states.
