Potential of U.S. online gambling market confirmed
News on 23 Sep 2016
News on 23 Sep 2016
Predictions by the research firm Technavio earlier this week that US online gambling will grow at an impressive CAGR (compound annual growth rate) of more than 51 percent between 2016 – 2020 (see previous report) have been independently confirmed by another research firm, Research and Markets.
In a press release announcing its latest report “Online Gambling Market in the US 2016-2020” Thursday R&M forecast that the sector will grow at a CAGR of 51.71 percent between 2016-2020.
A member of the R&M research team commented in the report:
“One of the major trends in the online gambling market in the US is the business tactics adopted by vendors to attract players. Rewards such as loyalty points, discounts, and gift vouchers are no longer attractive to the existing players and do not motivate prospective players. It is important that the vendors provide rewards and offers that are more personal and customized, based on the demographic and psychographic profiles of the players.”
According to the report, one of the key drivers for market growth will be popularity of online gambling. Online gambling extends the reach of the gambling games because it is web-based and does not require the physical presence of the players at the venue. The popularity of computing and mobile devices, especially among the younger generation, is the main reason for the extended reach of online gambling in the US, researchers found.
R&M observes that mobile ads are one of the strongest mediums of advertising, reaching an untapped group of the population that refrain from going to a casino or a bar where betting is allowed, and influences them to try online gambling.
The researcher’s conclusions tally with those of Technavio in assessing that in the US, the average age of an individual visiting a land casino is 45 years, whereas an average age of an online gambler is 34 years.
“The increasing presence of a younger population on the online gambling platforms will be one of the significant factors driving the growth of the market during the forecast period,” R&M opines.
