Online businesses go through ups and downs because people and their interests change over time. The last couple of years haven’t been easy for some industries, but when it comes down to online gambling, things are going only in one direction, and that is up.
The stats for late 2023 gathered by www.cnwindpower.com show that the gambling industry secures a consistent 20% annual growth year after year. As of late 2023, the data shows that the industry is worth almost $95B, which is more than double what it was in 2019. Four years ago, the stats showed around $45.7B, which means that the business is booming.
“There are many different reasons why the online gambling business is flourishing in the last couple of years. Besides the changing gambling legislation, more and more people get involved in different gambling activities because they allow them to have fun. It will be even more interesting to see what will happen in the future”, said Veselin from NB.
The average annual growth of 20% is impressive; there is no arguing that, but it is just one of the many jaw-dropping stats about gambling. We know a lot of you want to learn more, which is why this article will share a lot more important data. Let’s begin.
Future forecasts & Analysis of the current trends
Considering that the gambling business is increasing in popularity every year, it is no surprise that the forecasts are positive. According to some of the biggest sources of information, like Statista, the business will continue to grow in popularity in the next couple of years. The forecast for 2024 is set at around $107.3B, and the number goes up to 117.60B in 2025.
If we take a look at the breakdown of this revenue, we can see that online sports betting continues to be the leading activity. People from different parts of the world bet on their favourite sports daily, and it seems like this has an effect on the industry. Sports betting is also growing immensely in some parts of the world, such as the USA.
The second spot for the most popular gambling activity is online casinos. Truth be told, a lot of gambling experts and analyzers expected the online casino industry to surpass sports betting. Some countries around the world have begun accepting sports betting websites, but they have yet to do that for slots and other casino games. Therefore, online casinos remain slightly less popular and impactful than sports betting sites.
Although there are many other online gambling subsections like poker, virtual sports, and more, the number 3 most popular option is online lottery. Lotteries are not the go-to alternative for most gamblers, but the stats show that they also have around $1B to $2B growth per year.
The number of people gambling online
Considering the size of the online gambling business in 2023, it is no surprise tons of people are involved in this activity. Interestingly, millions of new people have started gambling online in the last couple of years. Today, the number sits at around $177M users, which is almost 2x than that of a few years ago.
There are many different reasons why the number of online gamblers grows daily. Some people choose iGaming over visiting regular betting shops and casinos because it is more convenient. With that said, the majority of users who began gambling only did that because it became available in their country. This brings us to the next important thing in this paragraph – the leading markets.
Leading markets for online gambling
Despite the fact that gambling is legal or semi-legal in many parts of the world, the UK remains one of the biggest markets. Today, you can find all world-class iGaming operators there, many of which have been around for years. The UK is also among the few places where gambling brands can advertise their services in many ways, which is why a lot of people gamble daily.
The data for the UK reveals that there is more than 60% growth in the iGaming revenue from 4 years ago. Courtesy of the strict requirements from the UK Gambling Commission, the gambling environment in the country is safe. People here favour sports betting a lot more than online casinos, but this is not surprising, considering the popularity of football.
Aside from the UK, the second juggernaut in online gambling is the USA. This may surprise a lot of you, but the USA has an eye-watering increase of more than 260% in the last 4 years. The iGaming revenue reached around $19B, much more than the $5B from 2019.
There are several reasons for the massive increase, including the legislative changes. Following the Supreme Court ruling, States are allowed to legalize online gambling. Unsurprisingly, many States took advantage of the situation, which is why US gamblers have access to tons of big names.
Aside from the US and the UK, many other markets also gained a lot more new players and increased gambling revenue. The stats include Germany, Bulgaria, and even Australia. The latter is an interesting example because the revenue from gambling is more than $9B. This makes it one of the highest in the world.
Considering the changes in gambling legislation, we can’t even imagine what the stats will look like 10 years from now.
Why do people start gambling?
Since the online gambling industry is growing in almost all countries, more people start gambling daily. This begs the question – why are people doing it?
Although you can find multiple answers, authoritative sources claim that there are several reasons that are more popular. The first one is because players want to win money. They realize that gambling is risky and is not a reliable way of making additional income, but this does not stop them from playing. Sadly, this is one of the things that can cause problems, but we will talk more about it later.
The second reason why many people start gambling is that they like the thrill. Some gamblers underestimate this reason, but people do all sorts of things to make their daily lives more exciting. One of them is to bet online.
Many people also gamble online because they like the competition, whereas around 20% of users see it as a hobby. Many users are also interested in experiencing something new, whereas others start betting because their peers influence them.
The frequency of betting
The gambling industry’s $95B milestone in 2023 is mind-blowing, and one of the reasons is the frequency of betting. While it is true that a lot of people bet less than once a year, the data shows that a lot of gamblers wager at least a few times a week. Many people also place bets every day or at least once a week.
While there is nothing wrong with wagering every day, people who do that need to know what they’re doing and have control over their habits. As you can imagine, those kinds of gamblers are at risk of developing problems in the long run. This is especially true if they do not have enough funds. Gambling can be a costly hobby.
Problem gambling around the world
The growth of online gambling in all parts of the world has a lot of advantages. However, there are also negatives that not many people talk about, one of which is problem gambling.
While it is true that many online gamblers know how to stay in control and what they need to do to avoid getting in trouble, others fall into the trap. Therefore, the number of users with a gambling disorder and other types of gambling problems grows day by day.
According to some sources, scientists have found out that the brain of people with gambling problems has similar patterns to those who are addicted to alcohol or drugs. Due to the fact that gambling sites are so easily accessible, those with problems often need to start wagering more often and with more money so that they can keep themselves entertained.
Another problem that people with online gambling need to be aware of is related to their financial situation. Many of them do not consider the fact that they do not have endless financial resources. Consequently, they often spend way more money than they have and even get loans just so they can wager.
The bottom line is that gambling is fun, and it will continue to grow, but the same applies to problems related to it. That’s why it is our job to spread awareness of responsible gambling and encourage people to be careful. Luckily, there are loads of third-party organizations dedicated to helping gamblers with problems.
