According to Statista, the global iGaming market will grow to $184 billion by 2032. In 2024 revenue is expected to be US$107.30 billion. The iGaming market includes sports betting and online casino games including various online lotto games.
The online casino industry in 2024 expects profits of 38.96 billion US dollars. At a compound annual growth rate (CAGR) of 5.38%, the industry is expected to generate $48 billion in annual revenue by 2028.
In this structure’s global online sports betting industry, 2024 is expected to be $49.9 billion. With an annual CAGR of 7.68%, by 2028, profits will grow to US$67.17 billion.
In addition, betting on esports is now gaining significant momentum. This is the bright side of the iGaming structure. The sector has extremely high prospects. The esports industry is transforming into a professional sports market with all the attributes: big tournaments, big sponsors, big audiences, and huge money. However, no one knows exactly how well such bets will perform in the future.
Analysts forecast $2.5 billion in esports betting revenue in 2024. At a compound annual growth rate (CAGR) of 7.27%, revenues will be $3.3 billion in 2028. Such indicators show that the iGaming industry has growth potential. The market is not overheated despite high competition. There is a shortage of good offers for the audience, and investors are willing to finance new projects.
“To launch a successful brand, you need to study the market, study its features, assess financial risks and opportunities for development, and select high-quality software on which the brand’s iGaming business infrastructure will be built: a betting platform, an online casino platform, a Sportsbook or a Turnkey Solution” – BetB2B
Even though the Internet is a global network, each iGaming company conducts its business in a specific jurisdiction and in specific countries and regions where it has a license. Therefore, knowing about these local markets, volumes, features, and potential is important.
The global iGaming market can be divided by region:
- Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
- Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
- Asian-Pacific area (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
- North America (United States, Canada, and Mexico)
- South America (Brazil, Argentina, Colombia, etc.)
European iGaming market
In 2024, profits from iGaming in Europe will reach US$46.9 billion. At a compound annual growth rate (CAGR) of 4.72%, the market size will exceed $56 billion by 2028.
In the general structure of the iGaming market in Europe, the capitalization of online casinos will exceed US$20 billion in 2024, with an average revenue per player (APRU) of US$840. The number of online casino players may exceed 37.5 million people and user penetration in 2024 could reach 6.5%.
The sports betting industry in Europe is also expected to see significant growth. Profits from online sports betting are expected to increase to $17 billion in 2024. With annual growth of 5.3%, the European betting market will be worth US$21 billion by 2028. The number of bettors will grow to almost 44 million people.
The European audience is quite passionate. It is worth noting that European online casino players prefer slots, poker, and roulette. When it comes to betting, Europeans prefer major sporting events. The most popular sport for betting is football.
Despite the growth of the iGaming market, operators are experiencing some difficulties in business. This is due to the heterogeneous regulatory policy regarding gambling.
The most popular jurisdictions for obtaining a license in Europe:
- Cyprus
- Malta
- Curacao
- Isle of Man
- Gibraltar
Each of them has its characteristics. Some have the lowest possible interest rate, for example, in Curacao, it is 2% of net profit. Some offer quick licensing. They provide the opportunity to conduct their activities, including in the countries of the European Union. To work in the UK, businesses need a license from the Isle of Man or Gibraltar.
“However, despite cross-border cooperation between countries in the European region, individual countries may locally limit the depth of iGaming by type of bet, by direction, by game, and this also needs to be considered in business architecture so as not to encounter surprises,” – BetB2B
iGaming Market in the Middle East and Africa
Most Middle Eastern countries allow players to access foreign sites, even if Islamic laws impose serious restrictions on the development of the gambling industry. This is because iGaming abroad is less strictly regulated. Online casinos have adapted to the needs of citizens of some countries. This is especially true for residents of Lebanon, Israel, Egypt, and the UAE.
In recent years, Arab countries have seen a surge in the popularity of sports betting. With Asia’s top national football leagues and teams concentrated in the region, football, camel racing, formula racing, and horse racing are the most popular sports in the area. Sporting events, both domestic and foreign, attract locals who place bets on their favorite teams through popular international betting sites. These platforms cater to the betting needs of the Arab population to some extent but lack translation into Arabic and regional languages.
Experts at Stellar predict that Africa’s iGaming industry, which is growing rapidly, will eventually revolutionize the continent’s economy. Countries such as South Africa, Nigeria, and Kenya offer significant investment opportunities due to their dynamic economies and the popularity of online sports betting.
Currently, the main types of sports betting in Africa are football and horse racing. According to the study Stellar, over 50% of South Africans regularly bet on sports. Football is the most popular sport in Africa, and there is huge enthusiasm for the sport among the continent’s population, which may explain the growth of the sports betting industry. Therefore, bookmakers in Africa should favor an online or mobile approach and consider the local population’s inclinations.
iGaming in Asia Pacific
The region has a strong iGaming culture, but betting and online casinos are completely or partially banned in many countries. However, despite this, in 2023, the share of the Asia-Pacific region, for example, in the online casino industry was 47.11%. This significant market share is largely due to its large and rapidly growing audience.
Due to the incredibly high population density (4 billion people) and huge audience, as well as the tendency to find roundabout access to gambling. In the region, preferences are given to sports betting (football and cricket) and gambling such as poker, casino slots, and lotteries.
The leaders are currently Macau and Hong Kong and the market is expected to grow at an annual CAGR of 11% in the coming years.
iGaming in North America
Gambling is becoming increasingly accessible in North America due to its legalization. Most regions offer legal betting on horse racing. Recently, individual states have made additional forms of online betting legal: casino games, poker, fantasy sports, and lotteries.
The current US legal framework allows bookmakers licensed in Nevada, Pennsylvania, Delaware, and New Jersey to operate, as online betting is regulated in these states.
The largest market share is in Canada. However, in terms of iGaming, it is considered unregulated
Slots are most popular due to the scale of innovation. Recently, live casinos have become more popular due to the many dealers involved and real-time feedback. This creates the impression of a real gambling establishment.
According to the service Statista, the North American market will grow with revenue of $29.94 billion. At a growth rate of 9.02% per year, profits by 2028 will be $42.30 billion. At the same time, sports betting will bring in $11.87 billion in 2024.
iGaming in South America
The South American market is promising for the gambling industry. The largest share belongs to Argentina, which has a population of about 45 million. Gambling is regulated only at the provincial level, and operators can only serve residents of their province.
“South America has long been on the radar of investors considering this region for running a gambling business. This is a large market where millions of people are interested in gambling and sports betting.”
The second largest market in the iGaming industry in South America is Brazil. The country is an ardent fan of football, so its population is actively interested in sports betting in this discipline. This market has another significant advantage – size. Brazil’s population is about 200 million people and more than half of them have access to the Internet and smartphones. The greatest demand is, as already mentioned, for football bets but horse racing, mixed martial arts, and basketball are also growing fast.
Looking at the experience of Colombia, Mexico, and Panama, in 2024, they plan to license iGaming in Brazil, Peru, and Chile. The sports betting, online casino, and bingo market is projected to reach $3 billion by 2027. The South American iGaming business is estimated to earn US$5.10 billion in 2024.
By 2028, according to expert forecasts Statista, this market will grow at a CAGR (compound annual growth rate) of 12.05% to reach a value of US$8.04 billion. Online sports betting in South America is expected to reach $2.29 billion in 2024.
The iGaming industry’s average revenue per user (ARPU) will be $582.60 in 2024. Additionally, by 2028, the iGaming industry will have 10.4 million players. According to the service, by 2024, 2.1% of South Americans will participate in iGaming.
“The main factor in the popularization of gambling and sports betting in South America has been the spread of affordable Internet and general growth in wealth,” – BetB2B
BetB2B: successful iGaming?
The success of iGaming industry operators depends on understanding their audience’s and market’s needs. To do this, companies must constantly collect and analyze data and be ready for change and development. There is a wealth of data available online, so it may seem difficult to know where to start analyzing the market at first glance.
“First of all, it is necessary to research the region where the iGaming project is planned to be launched, find out market details, collect statistics, and predict all possible crises,” – BetB2B.
To open a successful iGaming website, it is crucial to offer the local audience the types of gambling entertainment that are in demand. Consider cultural characteristics and financial opportunities to ensure long-term investment in the project’s development.
Involving a team of specialists in the industry can be highly beneficial. Such a team can provide detailed information on each region and supply everything necessary to launch a company, including analytics, support, specialized software, sportsbook, and payment technologies.
- Understanding Local Preferences:
- Cultural Characteristics: Tailor the offerings to match the local audience’s preferences and cultural habits.
- Financial Opportunities: Consider the economic conditions and financial capabilities of the target market.
- Investment in Long-term Development:
- Ensure that the project is scalable and sustainable for long-term success.
- Involving Industry Specialists:
- Regional Insights: Specialists can provide detailed information on regional preferences and regulations.
- Comprehensive Support: From market analytics to customer support, specialists can help streamline operations.
- Specialized Software: Utilize advanced software solutions tailored to the needs of the iGaming industry.
- Sportsbook Integration: Offer a wide range of sports betting options to attract a diverse audience.
- Payment Technologies: Implement reliable and secure payment solutions to enhance user experience.
By focusing on these key aspects, iGaming companies can effectively cater to local demands and ensure a successful launch and operation of their websites.
The material was provided by BetB2B – a platform provider for iGaming