The global online gambling market was valued at $29.87 billion in 2014 and is expected to rise to $49.73 billion in 2019, due to gradual easing of government regulations. This shift in online gambling regulations has opened up opportunities for more players to participate in gambling activities online from any part of the world.
93% of the global online gambling market consists of sports betting and casino games. The casino game segment is the fastest growing and there are now over 60 countries who license online casinos. While some governments have become more lenient in accepting this form of gambling, 56% of the world’s population still face some form of online casino ban. 39 counties have online casinos banned completely and 32 have local operators banned, although foreign casinos are still able to operate in these countries.
Online gamblers are participating more on their mobile phones every year, allowing users to bet and play casino games on the go. It is expected that there will be a rapid adoption of mobile broadband in both developed and developing markets during the forecast period. This increase will shift the market towards an almost even 50/50 split in terms of mobile and non-mobile users.
Mobile gambling accounted for 35.19% of the global online gambling market in 2014 and its share is expected to reach 49.09% in 2019. The contribution from mobile gambling was $10.51 billion in 2014 and it is expected to grow at a CAGR of 18.36% during the forecast period to reach $24.41 billion by 2019.
Segmentation of global online gambling market by distribution platforms 2014-2019 (GGY in $ billions)
Segmentation of global online gambling market by distribution platforms 2014-2019
Is Daily Fantasy Sports Considered Online Gambling?
Daily fantasy sports sites Fanduel and Draft Kings have recently burst onto the scene with massive brands (ESPN, FOX, NFL, MLB) backing them. Daily fantasy sports have branded themselves as a game of skill and not a form of gambling.
In 2006 lawmakers signed the ‘Unlawful Internet Gambling Enforcement Act’ which enabled these skill-based contests to legally operate, opening the door for daily fantasy sports. However, due to the recent daily fantasy sports scandal, last week the Nevada Gaming Control Board (NCBD) decided that daily fantasy sports sites require a gaming license because it is in fact a form of gambling. The NCBD has since shut these sites down in Nevada.
