Analysts project an approximately 11% growth in the global online gambling market over the next five years, with significant trends emerging during the pandemic. The closure of traditional gambling establishments prompted a migration of regular casino customers to digital platforms, facilitated by developers creating favourable conditions for the transition and adaptation of land-based players.
Despite certain countries prohibiting online gambling, the industry is experiencing rapid growth. Large companies strategically invest in countries with regulated online gambling, generating consistent high income from regular players. Technological innovation, including new smartphones and smart gaming/betting applications, enhances accessibility, while artificial intelligence (AI) analyses audience needs, offering relevant individualized experiences. Industry achievements in 2023 centre around technological innovations and new legislation fostering sector development.
USA
Live online casinos, featuring real-time betting, emerged as the most lucrative segments in the US online gambling market last year.
Most states legalized online sports betting in 2018, leading to active industry growth. On June 20, 2023, Rhode Island lifted the ban on online betting, marking a landmark event for the North American continent. The law repealing the statewide betting ban will be effective from March 1, 2024.
Despite positive changes, the US remains less attractive to online gambling companies due to stringent regulations, from licensing to fund reception. Major US industry players are expanding in Asia and Europe, with significant contracts in the land-based casino sector, from developed countries like Japan, Cambodia, and Vietnam to Eastern Europe. In online gambling, the American industry attracts players from Latin America and India.
Online casinos are gaining popularity in the US and globally, with internet roulette, blackjack, and online slots being the most favoured areas. In 2023, popular American online casino platforms include Jackpot City, Mucho Vegas, DraftKing, and Dunder.
Canada: Changing Landscape in Gambling
Even before the pandemic, land-based casinos in Canada experienced a decline in popularity, witnessing a 24% decrease in income from offline establishments since 2019. Online casinos, sports betting, and lotteries have dominated preferences in 2023, with Canadians spending $4 billion annually on land-based casinos and $17 billion on online gambling.
Despite being unregulated, gambling is a crucial sector in Canada's economy, supporting 182,500 full-time jobs, although challenges in obtaining online gambling licenses at the provincial level create favourable conditions for offline establishments. Online casinos, operating in a legal grey area, have proliferated in recent years. Notably, only owners of land-based gambling establishments can face legal consequences for illegal business.
In 2023, significant business trends hint at the potential path of mergers and acquisitions in the Canadian market. The Ontario Lottery and Gaming Corporation (OLG), a government-owned entity and a leader in the online gambling market, plans partnerships and acquisitions with new betting companies across Canada.
Overview of North American Online Gambling Industry
The North American online gambling market, featuring major players like 888 Holdings PLC, MGM Resorts International, Caesars Entertainment Corporation, DraftKings, and Flutter Entertainment PLC, is characterised by mergers and acquisitions as companies seek to expand their regional presence and attract consumers. Mergers and acquisitions are the prevailing strategy in this highly fragmented market.
Britain: Digital Shifts and Regulatory Updates
In the UK, the percentage of online gamers is steadily increasing, with the traditional betting sector largely transitioning to digital platforms, attracting poker and roulette enthusiasts to live casinos. An important event in 2023 is the update of the "White Book," governing gambling rules in the country and revising the 2005 Gambling Act to emphasise transparency and responsible gaming.
Jett Nygaard-Andersen, former CEO of Entain, a major player in the UK's gambling market, views the UK Gambling Act review as a crucial step towards creating a robust regulatory framework suitable for the digital age. The scandalous resignation of Nygard-Andersen amid legal issues, share value decline, and suspicions of a planned takeover by competitors will significantly impact the global online gambling market's power dynamics, potentially strengthening US influence if Entain is absorbed by a large American corporation.
Results: Industry Strategies for Expansion
Key industry players are forming partnerships and agreements to expand their online gambling offerings. Large corporations are also focused on launching their offerings in new potential markets, including Latin America, Asia, and Europe.
All companies are striving to personalise offers using AI-derived data. Online gambling is gaining more popularity than land-based casinos, prompting operators to personalise offers to attract and retain customers through current bonuses and individualised approaches.
