If you’re looking to enter the iGaming industry, a crucial first step is to understand 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. 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.

In this post, we’ll take a closer look at the online casino market size, analyze growth drivers and take a look at regional markets around the world, We’ll also explore what opportunities lie ahead for entrepreneurs. Let’s get started.

Before we get too specific, let’s define what we mean when we say “online casino market size”.

“Market size” refers to the gross revenue generated by online casinos all over the world. This figure is determined by player wagers, total profits, and the financial health of the industry.

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 dive into later in this post. This research is conducted by studying revenue reports, regulatory changes, and market trends.

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 2023, 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. Instead, they have access their favourite games wherever they go. On their way to work, in the waiting room at the dentist, or anywhere with 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. The United States for example now has 34 states with some form of legalized gambling.

The latest trends and advancements in technology keep casino operators on their toes, and drive the growth of the online casino market size. From the beginning, online casinos have been driven by innovations like these:

• Cryptocurrencies: The online casino industry is starting to embrace 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 (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 US $82.02 billion in 2023 to more than $936.57 by 2030. Prospective operators can see how these technologies are having a massive impact on iGaming. (Grand View Research).

Covid 19 has been a gigantic driver in the growth of online casinos. What happens when the global population is stuck at home with phones in their hands and lightning fast internet? Those who enjoy the thrills of gambling but had to abide by social distancing measures discovered online gambling.

While it may not be possible to determine an exact figure, various reports state its approximate value. In 2023, the global online gambling market was valued at approximately USD 70.64 billion (Grand View Research). 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. (Grand View Research).

These numbers represent the online gambling market as a whole, with online casinos 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 land based casinos in the coming years. As you can see, there is some tremendous revenue potential in the industry.

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: Hong Kong, Macau, India

• 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 last year.

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 operators to understand these regional differences.

If you’ve come this far, you understand that partnering with the right software provider is a great first step. Lion Gaming is an industry leading software provider with a suite of white label casino and sportsbook solutions. At Lion Gaming, we cater to the preferences of every prospective operator.

The online casino market size is growing and growing fast. It’s poised for continued expansion in the years ahead, and entrepreneurs 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.