As expected, revenues generated by online gaming have seen significant growth owing to the COVID-19 lockdown measures. And since over 80% of the world’s population owns mobile devices, this shift from land-based gambling hasn’t been much of a hassle.
So what exactly makes up online gaming revenues? And what factors contribute to their rise?
The Gaming Market Is Booming Globally
Online gambling revenues come from remote gaming activities via the internet using PCs and mobile devices. The market includes gaming platforms offering casinos, sports betting, poker games, lotteries, and Bingo.
1. Online Casinos
According to Fortune Business Insights, the market cap for online gaming was around $66.7 billion at the end of 2020. These numbers account for a 13.2% growth rate since 2019 and are a result of several factors. At the top of the list is the increased phone use, allowing players to access safe online casinos from anywhere and with ease.
Along with mobile gaming, factors like legalization and technology development have also fueled this market. Europe dominated the market, accounting for 52% of its size, owing to the legalization of online casinos in France, Germany, and Italy. On the other hand, technological innovations have enhanced gaming graphics to make games even more immersive.
2. Online Poker
After the ‘Black Friday’ shut down of online poker operations in 2011 in the USA, the international market has never quite soared. But with COVID-19 restrictions forcing millions to turn to the game as an outlet, the European poker traffic has doubled.
Online poker restrictions continue to ease in the US, with states like Nevada, Delaware, and New Jersey legalizing the game. As a result, operators expect a 20-30% year-over-year growth from March 2020 onward. Pennsylvania and Michigan are expected to be the following states to fully embrace online poker, which will increase the US gaming revenues.
3. Online Sports Betting
From 2019 to early 2020, the global sports betting market had registered a 10.1% CAGR growth. The trend then took a hit in March 2020, following the pandemic, with most events coming to a halt. Since then, betting has slowly risen, and in 2021 numerous record-breaking betting stats have become possible thanks to the Super Bowl and March Madness.
Asia makes up for the largest market, with a 33% share, partly due to the sheer number of people and high internet penetration. Online sports betting revenues mainly come from significant events such as the FIFA World Cup and European Championships. It’s also popular in horse racing, tennis, basketball, NASCAR, hockey, golf, and rugby.
4. Online Bingo
According to the gaming industry report by Statista, the UK is the undisputed world leader in online Bingo. It saw a rise of 31% of the existing players in early 2021, with 27% of them depositing more than £50 every month.
One notable feature of online Bingo that has led to its popularity is the advanced chat functionality. It helps bring a sense of community and interaction between the gamers, which comes in very handy, especially with the lockdown measures. Almost 80% of the online bingo market is between 35 to 64 years old.
The primary gaming market mainly revolves around these variants;
- 90 Ball Bingo
- 75 Ball Bingo
- 30 Ball Bingo
- 75 Ball Variant Bingo
Top Market Players
Many companies focus on various factors, including access to multiple devices, offerings, and overall user experience. Paddy Power and Betfair merged to form Paddy Power Betfair to enhance their services, increasing the profits. Similarly, William Hill PLC acquired Mr. Green in 2019 to gain a competitive edge in the market.
Some of the other prominent contributors in online gambling revenues include;
- Bet365 Group Ltd.
- Betsson AB
- Landbrokes Coral Group
- 888 Holdings PLC
- Sky Betting And Gaming
What The Future Holds
Online gaming is a popular form of entertainment globally, and its statistics show just how lucrative it is. Grand View Reseach predicts that by 2027, the online gambling revenues will spike to around $127.3 billion. So if you’re afraid that it’s too late to invest, understand that this is only the beginning. And if you are a loyal punter, know that more and more games are coming your way.
Author BioHi! I’m Bryan, and I’m a passionate & expert writer with more than five years of experience. I have written about various topics such as product descriptions, travel, cryptocurrencies, and online gaming in my writing journey. The latter is one of my favorites topics, and you can find some of my premium casino content at OUSC.