The present size of the global online gambling industry is USD 63.53 billion, and according to researchers, it is projected to expand at a compound annual rate of 11.7% over the forecast period, 2023 to 2030. This impressive growth is primarily associated with the high level of internet usage – it reached 92% in the United States in 2022 – and the mobile phone usage amplified by 5G. Forces such as Betsson AB’s recent acquisition of a majority stake in KickerTech Malta Limited, are building B2B competencies, and whilst BetMGM have partnered with NBC Sports to incorporate gambling with media content. Mobile rise, software interfaces such as augmented reality, and artificial intelligence also contribute to improve the experience by providing developments of more engaging gambling applications. All these factors thus speak to the energetic growth of the online gambling sector. Malta is one of the countries that attracted many foreign investors interested in Maltese company incorporation of businesses in the gambling sector.
This paper identifies and explores how technological innovation is rapidly changing the landscape of online gambling in regard to growth and users’ experiences. Thus, Virtual reality (VR) has been central in this revolution as it offered players a realistic interaction with other gamblers and dealers. SlotsMillion, which is operated by the Malta-based SLTM Ltd., has a VR mode, which presents the customers with a realistic casino environment. Also, online casinos continue to rely on the availability of rights to free-play versions of games to draw new customers given that they give users a way to try the products without having to spend money and at the same time, they can also make some revenue from advertisement spaces within the applications. New payment systems are also made secure and transparent through the use of blockchain technology. Sites like BitStarz, the gambling site that has millions of players using bitcoins to gamble and have a chance to win real money, show that Bitcoin and its derivatives are good for fast, safe payments. Altogether all these technological improvements serve the cause of the industry and strengthens the attraction and safety for online gambling.
Type-Based Segmentation of the Online Gambling Market
The global online gambling market is further divided based on strategic segments such as poker, sports, bingo, and casinos out of which the segment for sports betting is dominating with most demand and holding about 49% of the total market share. This dominance is supported by the increase in demand for event betting especially in rugby and soccer besides the increased internet usage. Smarter and strategic partnerships like the one between Amazon.com, Inc. and DraftKings Inc., where the latter acts as an exclusive outside sports betting application for soccer games on Amazon Prime video improving this segment’s growth. On the other hand, for the casino segment with blackjack online and virtual slots among others, it is set to expand from 2023 to 2030. This growth is evident from over 100 live, interactive games of chance and skilled design seen on Lucky Block; especially quick casino games and easy to use interfaces. Supported by strong internet connectivity and exemplary customer service, these features together improve usability, which drives market development.
Device-Based Segmentation of the Online Gambling Market
In the context of Internet gambling, device type is found to be a critical factor that determines the nature of markets users encounter as well as the choices they make. However, the possession of a large screen and improved characteristics such as sound and image quality helped the desktop take up a significant 48% of the markets’ revenues. However, there is a momentum towards mobile gambling as the developments in the smartphone give clear graphics of real gambling and ease to access online platforms like CricBaba and bet365 on iPhone or Android gadgets. The accessibility along with brief improvements where the graphics and storage capabilities come as integral to advancing this segment. Mobile gambling has a lot of benefits: it enhances convenience through remote access, special points and bonuses, a large number of deposit types and multiplayer gambling, that is why, mobile gambling is growing rapidly and becoming preferable for users.
Regional Segmentation of the Online Gambling Market
Year by year statistics demonstrated that in 2022 Europe became the undisputed leader of the online gambling market, controlling over 41% of the market. This leadership is as a result of the emerging legalization of betting across different European countries such as Italy, Spain, France and Germany. Market drivers include the availability of service over high-speed broadband, trends including the rapidly growing online casinos and the use of smartphones that greatly enhanced the market’s prospects. Sports betting alone accounted for the biggest slice of online gambling, according to a study by the European Gaming & Betting Association. The market was also expanded through regulation with the help of the UK Gambling Act 2005 and permits the companies to advertise their gambling sites. As for the future, high market development is expected in the Asia-Pacific area due to the development of internet services, the change in legislation regulating gambling activities, and the increased popularity of bitcoins and similar currencies. The up-ticking in per capita spending for the entertainment sector, especially in China and India, along with continuing economic growth in the region will be another factor leading to this growth.
Key Companies & Market Share Insights
It is imperative to acknowledge that core stakeholders in the online gambling sector are making investment partnerships and acquiring targets to produce higher value consolidations and moments of ownership, which ultimately allows the acquisition of access to more potent products to appeal to potential users. With competitions like compatibility, on new devices these companies are lowering barriers to entry for new users hence increasing the company’s market. The advancement in the technology has seen them minimize the account creation process and this has enabled people to start gambling within the least struggle. Further, adoption of multiple modes of payment for providing funds to the users’ account has also reduced the complexity and improved the usability for the users. Among the major companies driving these innovations include 888 Holdings Plc., Bet 365 Group Ltd., Flutter Entertainment Plc, Bally’s Corporation, and Entain Plc some of which are the pioneers of the future of the online gambling market.
