Online slot gambling is becoming increasingly popular all over the world, but its growth in Europe is particularly impressive. A major component of this growth comes from sports betting. Global Betting and Gaming Consultant has released data recently that indicates that the sports betting business is growing at a very fast pace.
The Numbers Speak For Themselves
There has been an amazing increase of 328% in gross gaming yield from online gaming starting from 2005 to 2015, and this has enabled it to reach a very creditable figure of $15.87 per head. While there has been a steady growth during this period, GGY has accelerated in the period starting 2010, with an increase of 198% during the past five years alone. If this rate of growth can be sustained then the market would be worth $21.88 billion by the year 2020.
Sports betting is more popular than any other type of gambling as the numbers indicate. Always very popular, it contributed almost half of iGaming revenues for the year 2015. The figure for 2005 was 45.6% but this increased to 48.5% in the previous year.
Online casinos also increased their contribution to iGaming revenues from Europe. The proportion of online casino business in 2005 was just 23.1%, and this grew to 29.2% in 2015. Popular casinos patronized by European customers include EuroGrand Casino, EUCasino, and Royal Vegas Casino.
Online bingo makes a very small percentage of the iGaming business in Europe, but it has managed to hold its own over the past decade. It was worth 8% of the industry in 2005 and increased slightly to 9% in 2015.
Online poker seems to be losing popularity in Europe and it has had a very disappointing performance over the past decade. It contributed 23.4% to revenues from iGaming in 2005, but its contribution dropped to 13.4% in 2015.
European Market Expanding Steadily
The iGaming market in Europe is expanding at a steady pace on account on legalization and proper administration by various jurisdictions. The total European online gambling industry is currently worth a massive $87 billion, which makes it the biggest real-money internet gambling market in the world. It grows steadily at 3% per year, with a large number of operators catering to the needs of more than 6.8 million consumers.
Potential Growth Areas
While Europe leads the iGaming industry, other markets that are set to grow at a very fast pace include the United States, Russia, and India. There are many restrictions on online gaming in the United States, with only Nevada, Delaware, and New Jersey permitted to offer iGaming as of now. New Jersey gets the lions’ share of revenues from this market at 92% which is worth $148.8 million. Nevada is a far second with revenues of $10 million, and Delaware makes a negligible $1.81 million. Gambling is a heavily restricted activity in India and Russia, but there exists a highly receptive population in these countries. Overall, there is immense potential for the business to grow globally, but it will definitely take some time.