A recent report by GIA has predicted that the global gambling market is set to reach nearly $1 trillion in just 4 years time. For a market that is often ostracised for its’ dangers and skirting of the advertorial laws, this seems like an immense achievement to reach and one that should be celebrated and not diminished. But just how does a market that spends so long lobbying for restrictions to be dropped, continue to become such a behemoth in the world.
Growing Market share in US/CA
While Europe is still one of the largest markets for online gambling, the opening of multiple US states and the recent legislation of the Canadian markets (Ontario being the first to mind), means that a whole new channel of revenue is coming to the table. While this is still a slow-burn and will take a lot of time to come to fruition, it is a crucial element for the Americas to justify new tax laws and will bring in much needed revenue after a few very difficult years of lockdowns.
Legislation changes in EU
With multiple markets in the European space now legislating or allowing gambling to be legal to advertise to its’ citizens, the money will just keep growing. Although there are plenty of obstacles to overcome and markets that have yet to agree terms, notably the sponsorship of sports teams and live-TV advertising, this is surely going to justify a huge chunk of that predicted $876bn to come.
Merging of e-sports/e-gaming and gambling (Loot boxes)
While the recent ruling in a Dutch court that loot boxes are not gambling has calmed fears from those that were dreading the tax implications, there is a growing synonymity between gaming and gambling that will inevitably lead to a whole host of new gaming consoles being gateways to gambling methods. This has already started to take shape when you look at the successes of DraftKings and other sportsbooks that have long taken the opinion that soft gaming and gambling will become a recipe for success in the future. While this is also a few years from reaching its’ apex, there will be a huge chunk of money to come from this channel, one that will certainly have been considered when estimating how huge an increase there will be by 2026.
So just who stands to make all this money? Well the answer is largely going to be the governments who will inevitably tax things to kingdom come, but of course the companies that take the deposits, the sites that promote them and let’s not forget the affiliates who help them out. But the real successes will come from the game creators, largely to the types of games that they sell, with operators like Evolution Gaming selling their services to hundreds of casinos and live casinos around the world, simply taking a percentage of all the profits that are reaped. Just a few years ago, the launch of their flagship game, Crazy Time, went on to become a huge success across several European markets and netted them millions in licensing fees alone.
Well there you have it, a near trillion dollar industry inside just 4 years, with no sign of slowing in the near future.