Steady growth for global online gambling
News on 10 May 2015
News on 10 May 2015
The latest publication by Hamburg-based business intelligence company yStats.com, “Global Online Gambling and Betting Market 2015,” reports that online gambling is growing steadily across the globe, with mobile devices increasingly being used to access gambling sites.
The findings conclude that the growth of online gambling has led to consolidation among companies offering gambling over the internet, and that more nations are licensing and regulating the genre rather than trying to ban it..
The global market for online gambling is forecast to maintain single-digit growth rates over the next four years, and is expected to reach a medium-high, double-digit number in billion Euros revenue, yStats predicts.
A major trend in online gambling is the use of mobile devices. Many gambling sites report increasing shares of their total revenues stem from mobile and gambling search words, which are increasingly originating from phones and tablets.
Another important factor is a wave of acquisition deals which has taken place in the past two years; for example, Canada-based Amaya Gaming Group acquiring the parent company of PokerStars and Full Tilt Poker.
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 and Bwin.Party registered a decline in total revenues.
Europe was the largest online gambling market in the world, owing to a large number of countries with established regulatory regimes. 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, 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 ECJ in 2014.
In Russia, online gambling remained illegal, but a separate regime is being formed for online betting under a self-regulatory organization and the nature of online poker has been 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.
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 forecast a year ago.
In Latin America, in both Brazil and Mexico, new bills were put forward in the legislature to regulate online gambling, but the legislation has not yet been approved.
Meanwhile, on the African continent, the government of 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.
