Online gambling continues to grow
News on 17 Sep 2015
News on 17 Sep 2015
The latest research findings of Hamburg-based business intelligence company yStats.com indicate that online gambling globally is steadily growing, with increased use of mobile devices by punters, and that more governments are moving to regulate the practice.
The report confirms that consolidation is taking place in a business sense.
In its report for 2015 the company notes that the global market for online gambling is forecasted to maintain one-digit growth rates over the next four years, and is expected to reach a medium-high, double-digit number in billion Euros revenue.
The performance of the leading global companies in the online gambling and betting segment varied last year, with William Hill and Paddy Power showing growth rates in online net revenues of close to +20 percent, while Betfair showed only moderate growth.
Europe was the largest online gambling market in the world, owing to a large number of countries with established regulations in this region. This number is set to increase, as countries like the Netherlands adopt new online gambling regulations, seeking additional tax revenues. Across the UK, France and Spain, betting, in particular sports betting, was the largest segment of the online gambling market in 2014, while in Italy it was outperformed by casino games.
In Germany, the co-existence of separate gambling regimes in the state of Schleswig-Holstein and the rest of the country was upheld by the European Court of Justice in 2014, whilst in Russia online gambling remained illegal, but a separate regime is being formed for online betting under a self-regulatory organisation, and the nature of online poker is being debated.
In the Asia-Pacific region, some governments have gone to considerable lengths to limit online gambling. In Singapore, all forms of remote gambling were forbidden under new regulations in 2015, and in China and South Korea, a number of organisers of illegal online gambling websites were arrested.
In Australia, where the regime is more liberal, foreign companies are particularly attracted by the interactive betting sector and a pronounced betting culture, but a review of the Act is now in progress.
In the USA, of the three states allowing online gambling, New Jersey generated by far the largest revenues in 2014. More states are expected to adopt rules concerning online gambling as revenues continue to grow, though at a somewhat more moderate level than was forecasted a year ago.
In Mexico, a new bill was put forward in the legislature to regulate online gambling, and the indications are that it will be successful.
South Africa, regional leader in land-based gambling revenues, announced in early 2015 that it had no plans to legalise online gambling despite calls to do so.
