The internet based gambling and betting industry is expected to increase by a substantial 10.8% by the year 2024. Transparency Market Research (TMR), a global market intelligence firm, released a report in which it analysed the industry and also made forecasts for the period 2016-2024. The report stated that the industry would grow to massive $96.89 billion by that time and that there would be massive consolidation brought about by a number of mergers and acquisitions. The research group estimated that the industry was worth $42.63 in 2016.
The TMR report explained that the biggest barrier to market entry was that there was hardly any possibility of service differentiation. Many jurisdictions also have passed stringent and punitive laws that make it very difficult to new players to enter the market or compete against well-established players.
One of the biggest areas for growth in the industry is smartphone gaming. Increasing numbers of companies in the business are offering mobile games in response to their use for almost internet related purposes. There are smartphones available these days for all budgets and people prefer using them instead of PCs because of their convenience. People do not like being restricted to one place and would prefer to gamble when they are on the go or have a bit of time to kill. There is immense potential in creating smartphone apps and mobile sites since their earning capacity is very high.
Another potential area for growth is virtual reality, and it is expected to appeal to customers with high disposable incomes. However, this depends on the development of special virtual reality devices and special games to be played on them. Online sports betting sites have started introducing live streaming of games in order to enhance the customer experience. They are also working on providing customers with increased betting options. The industry will also be exploring a number of marketing efforts to attract regular gamblers to online gambling sites. The market can also benefit from the introduction of gamification strategies.
The online gambling industry is facing a lot of trouble on account of regulatory issues. The United States has the potential to be a huge market for this industry but it has very strict laws that restrict online gambling. The land based gambling lobby has been exerting a lot of pressure on lawmakers to avoid legalizing online gambling.
There are also legal restrictions in the Asia Pacific and Middle Eastern areas. Muslim countries do not permit gambling because it is against the tenets of their faith. While it is unlikely that these countries will ever legalize gambling of any type, some states in the US are expected to change their laws within the next couple of years. Lawmakers are facing up to the reality that Americans continue to gamble at unregulated sites since legal options are closed to them.
Not only is this putting them at risk, but it also deprives the governments from a good stream of revenues in the form of licensing fees and taxes. There is growing pressure on some states to loosen their regulations and allow certain forms of online gambling, China is another potentially huge market for online gambling where this business is banned entirely. However, it doesn’t seem likely that the government will change its stance any time soon.
The biggest players in the online gambling industry worldwide were William Hill, Playtech , and Paddy Power Betfair. Other companies that contributed heavily to the growth of the industry were Amaya and Ladbrokes Coral Group. These companies are working hard to expand the market and also increase their market share.