Online gambling market to grow at a CAGR of 42%

In 2008 the global online gambling market was valued at approximately US$21 billion, and by 2012 has been forecast to grow at a compound annual growth rate (CAGR) of 42% to hit US$30 billion.

Up until 2011, the mobile segment accounted for less than 1% of the global market, but this sector is expected to grow rapidly in the future.

Online gambling market growth is being fuelled by a solid infrastructure of broadband Internet connectivity, easy access to mobile applications, and safe and secure payments through a native banking system.

Consumers are becoming increasingly comfortable using their mobile phones for products and services such as mobile banking, wireless Internet via 3G networks, and picture and video messaging, meaning the online mobile gambling is likely to be not too far behind.

In 2012, online gambling operators discovered that social networking sites such as Facebook could be used as an opportunity to widen their reach. The market has really taken off in the last year and online gaming companies are closely watching this growth for even more social games such as bingo.

The United States may have the most potential as a lucrative market for online gambling, but it is also the market with some of the greatest challenges. Currently, online gambling is outlawed in the US under the UIGEA, which prohibits US banks and credit card companies from processing charges to and from online casinos.

Should online gambling be legalised, the US market for online casinos and poker could be worth as much as US$12 billion. Due to these laws, only a single-digit percentage figure of all US Americans participate in online gambling, while almost 50 percent play lotto.

In Europe the online gambling market has been experiencing strong growth with the industry being legalised in an increasing number of European countries since 2011, with the UK starting the trend. There, individuals aged 18 to 34 are the most active. The market in Europe has been forecast to reach 8 billion euro by 2012.

For more information on the online gambling market, see the latest research: Online Gambling Market Report

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