What is the Online Casino Market Size?
If you’re looking to enter the iGaming industry, a crucial first step is understanding the online casino market size. The industry is dynamic and thriving, and provides plenty of opportunities for businesses looking to start an online casino or sportsbook. Research shows that the online casino market size and scope is growing rapidly, as a direct result of global smartphone penetration, regulatory changes, advancements in technology, and the impact of a global pandemic.
Today, we’ll take a closer look at the online casino market size, analyze growth drivers, take a look at different regional markets around the world and explore what opportunities lie ahead for your iGaming business. Let’s get started.
Defining “online casino market size”
Before we get too specific, let’s define what we mean when we say “online casino market size”. In short, it refers to the total revenue generated by online casinos around the world. This figure is determined by few factors, including player wagers, total profits, and the financial health of the industry as a whole.
Determining the exact market size is challenging, given how rapidly the industry is evolving and how far-reaching it is. However, we can examine some reports and analytics provided by various research firms, which we will dive into later in this post. This research is conducted by studying revenue reports, regulatory changes, and market trends.
The expanding online casino landscape
In the last ten years, the online casino market size has expanded dramatically. There are many factors that have contributed to this growth, but some of the main drivers are covered here:
In 2024, there are billions of smartphones in the world. Couple this proliferation with widely available high-speed internet, and you’ve got a recipe that allows players to enjoy their favourite casino games anytime, anywhere. Bettors are no longer anchored to physical slot machines or betting floors, but instead access their favourite games on their way to work, in the waiting room at the dentist, or just about anywhere they can find the time and a strong internet connection.
Countries around the world have (finally) started to realize the potential revenue streams that are presented by legalizing and regulating online gambling. More markets than ever are accepting online casinos and gambling operations, which represents a great opportunity to be had.
Innovation is the bedrock of the online casino industry. The latest online casino trends and advancements in technology are keeping online casino operators like you on their toes, and driving the growth of the online casino market size.
- Cryptocurrencies: The online casino industry is embracing the use of cryptocurrencies at breakneck speed. Crypto offers platers the ability to have flexibility, anonymity and speed that fiat payments can’t provide. With over 3.4 billion digital wallets in existence as of 2022 according to Juniper Research, the possibility to capture an entirely new generation of players is evident.
- Decentralization and the blockchain: Decentralized gambling platforms built on the blockchain can offer enhanced security, transparency, and fairness that wasn’t possible previously. Smart contracts and on-chain wagering ensure provably fair gameplay without the need for an intermediary.
- AI, VR, AR, ML: Artificial intelligence, virtual reality, augmented reality and machine learning are all making waves in the online casino market. When used in concert, all four can create an immersive, authentic casino experience for players all over the world. Consider that the global metaverse market size is projected to increase from 82.02 billion U.S. dollars in 2023 to more than 936.57 billion U.S. dollars by 2030, and you can see how these technologies are having a massive impact on iGaming.
Impact of COVID-19
Covid 19 was a gigantic driver in the growth of online casinos over the last three years. What happens when the global population is stuck at home with phones in their hands and lightning fast internet in their homes? Those who enjoyed the thrills of gambling but had to abide by social distancing measures discovered online gambling and ran with it.
The numbers behind the size of the online casino market
While it may not be possible to determine an exact figure, various reports, including one from Grand View Research, report the online gambling market size as:
In 2023, the global online gambling market was valued at approximately USD 70.64 billion, and the market is projected to reach a value of USD 153.57 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 11.7% from 2023 to 2030.
These numbers represent the online gambling market as a whole, with the online casino market being a major component. The others in the space are sports betting and mobile gaming.
To help put these numbers into perspective, the online casino market size is expected to eclipse that of traditional, land based casinos in the coming years. As you can see, there is some tremendous revenue potential in the industry.
Emerging and existing markets
The online gambling industry is continuing to expand into new and emerging markets all over the world. Some of the primary emerging markets to keep an eye on are:
- Asia-Pacific: India, Indonesia, South Korea
- Latin America: Argentina, Brazil, Chile, Mexico, and Colombia
- Africa: South Africa, Kenya, Nigeria, Lesotho
In addition to the emerging markets mentioned above, there are multiple strongholds for the online casino market around the world. Europe has been a major market for many years now, with the United Kingdom, Malta and Gibraltar leading the charge. North America has witnessed a huge surge in online gambling activity in recent years, with multiple states moving ahead with legalization, and the province of Ontario giving the green light to iGaming in April 2022.
Conversely, there are many regions around the world with much stricter regulatory framework and cultural reservations about online gambling. Typically, these markets will develop more slowly or not at all, and it’s important for you to understand these regional differences.
The Lion Gaming advantage
If you’ve come this far, by now you’ll understand that partnering with the right online casino software provider is a great first step to enter the online casino market. Lion Gaming is an industry leading software provider with a suite of white label casino and sportsbook software powered by the Fer0x Engine. Our platforms cater to the preferences of every prospective operator. Our solutions can allow you to enter the market quickly and at an attractive price point relative to building a platform from the ground up.
The online casino market size is growing and growing fast. It’s poised for continued expansion in the years ahead, and you have an opportunity to capitalize on that growth. However, understanding the online casino market size and how it got there is a critical first step.
If you’re ready to get started and take a run at entering the market, contact Lion Gaming today. Let our team lay out the groundwork for your iGaming operation and set you up for success.