Online Gambling Software Market Size, Share & COVID-19 Impact Analysis, By Type (Sports Betting, Casinos, Poker, Lottery, Bingo, and Others), By Devices (Desktop, Mobile, and Others), and Regional Forecast, 2021-2028

The global online gambling software market size was USD 66.72 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with online gambling witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a significant growth of 11.2% in 2021. The market is projected to grow from USD 74.17 billion in 2021 to USD 158.20 billion in 2028 at a CAGR of 11.4% in the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

The growing adoption of smartphones, advancements in internet technology, and increasing spending power of users, among others, are driving the market demand for digital gambling. The online gambling software providers are heavily investing in advanced technologies to enhance the customer experience, which will boost the interest of players. In the scope of the market report, the market estimation is executed on the basis of the revenue generated by gambling platforms from users.

COVID-19 Impact

Restrictions of COVID-19 on Land-based Casinos to Boost Demand for Online Gambling Software

The outbreak of the coronavirus has created a vast set of restrictions on land-based gambling arenas. The restrictions on public transportation, tourism, and public gatherings, among others, have largely impacted the offline gambling industry.

However, the COVID-19 pandemic has surged the demand for internet-based gambling across nations. The temporary closure of colleges and the increasing adoption of work-from-home policies are likely to drive the growth of the market. For instance, as per the report of AlphaBeta Australia, Australia witnessed a 67% increase in online betting in April 2020. Similarly, according to a report by Concordia University, Great Britain observed a 17.5% rise in internet-based gambling. Thus, the shutdown of non-essential services during the pandemic-induced lockdown boosted the adoption of mobile gambling among users. Thus, during the pandemic crisis, the market witnessed remarkable growth rate. Moreover, the market is expected to grow with a significant CAGR in the post-pandemic period.

• For instance, in April 2020, Kindred Group PLC updated the initial impact of COVID-19. The company had gross revenue for the first quarter of 2020 estimated to be in the range of GBP 247 to 253 million, whereas the gross revenue for 2019 was 224.4 million. Further, the company’s gross revenue was positively impacted by strong sports betting margin.

LATEST TRENDS

Integration of Artificial Intelligence in Gambling Platforms to Enrich User Experience

Virtual gambling companies are making huge investments in new technologies for enhancing user experience. Artificial intelligence (AI) plays a significant role in offering new features and functions in the mobile gambling industry. Application and website developers are adopting AI to provide a better customer experience. The integration of AI with these systems helps in analyzing the user's gaming interests and behavior. This helps in suggesting games in-line with the players’ interests and thus improving the customer experience.

Further, AI can support in tracking possible addiction problems and negative patterns through users’ behavior. Many developers are integrating AI to offer preventive measures in handling gambling addiction. For instance, a responsible gambling analytics platform providing company, BetBuddy Limited, applied artificial intelligence to track users’ digital footprint and detect problematic gamblers. The company offers personalized statements to players and the operator for reporting such behavior. Thus, the adoption of AI is likely to boost the market growth.

• For instance, in March 2020, Scientific Games Corporation partnered with Vaix.ai to offer Artificial Intelligence (AI) through OpenSports that enables end-users with an enhanced betting experience.

DRIVING FACTORS

Ease of Online Payment to Drive Online Gambling Software Market Growth

The growing adoption of digital and mobile payments has made payment procedures easier for users and online players. Also, online payment facilities offer a secured and safe mode of transaction, boosting their adoption in the online gaming industry. Further, the simpler and convenient payment methods boost player participation in the gambling industry.

The comfort of remote payments creates vast opportunities for online gamblers to promote and drive cash flow in the business. For instance, Visa Inc. and MasterCard are offering secured debit and credit payment options for online casino accounts. Similarly, companies such as PayPal and Neteller are offering E-wallet services for online gambling. Moreover, Neteller also provides transactions in 26 currencies without applying transaction fees. Thus, the availability of secure digital payment platforms is expected to fuel the demand for virtual gambling.

• For instance, in January 2021, William Hill Plc partnered with Chippewa Indians and Grand Traverse Band of Ottawa to launch its online and mobile casino app and sportsbook. The app also includes a secure and quick registration process and a wide selection of options to withdraw and deposit funds.

RESTRAINING FACTORS

Rising Adverse Impacts on Mental Health and Bans on Online Gambling May Impede Market Growth

The growing adoption of internet-based gambling amongst users is creating adverse effects on mental health. The increasing addiction towards the easily available internet-based gambling platforms challenges the user to maintain mental balance. Owing to this addiction, the number of suicide cases has been increasing year on year. On observing the growing cases of increasing betting debts in 2020, the Tamil Nadu State Government banned gambling websites. The other addictive gambling effects are pathological gambling, also known as compulsive gambling. The long-term effects of this kind of gambling might trigger chronic stress and hypertension issues.

Also, various countries have imposed a ban on gambling sites owing to the increased risk of problematic gambling behavior. Countries such as Russia, the UAE, Qatar, and Poland have imposed bans on gambling. For instance, the Telecommunications Regulatory Authority of UAE controls internet content and activity, thus preventing access to online casinos. Further, some countries such as India, Singapore, Japan, and more are likely to impose bans on the gambling industry. All these key factors are likely to hamper market expansion.

SEGMENTATION

By Type Analysis

Increasing Demand for Online Gaming to Drive Sports Betting Growth

Based on type, the market is segmented into sports betting, casinos, poker, lottery, bingo, and others (skill gaming, etc.).

Sports betting is expected to dominate the market during the forecast period. The growing demand for online gaming and betting practices are likely to drive the demand for sports betting. Further, growing sponsorships in online sports betting are also expected to fuel this segment.

The casinos are anticipated to showcase rapid growth during the forecast period owing to the multi-layer taxation environment in the casino business. In addition, the increasing fashion for remote gambling is expected to drive online betting demand.

The demand for online lottery and its distribution is gaining traction. The growing per capita income, technological adoption, and interest in draw-based games are expected to drive market

Similarly, bingo is likely to show a steady CAGR owing to the increasing development of bingo sites. The growing interest of young adults in poker is likely to boost internet-based gambling practices.

By Devices Analysis

Rapid Adoption of Smartphones to Fuel Demand for Mobile Gambling

Based on devices, the market is categorized into desktop, mobile, and others (tablet, iPad, etc.).

Mobile gambling is expected to grow rapidly owing to the increasing adoption of smartphones. The youngsters are the driving force behind the surging demand for mobile-based sports betting. As per the Deloitte report on Betting and Gambling, one-third of betting and gaming users adopt smartphones for online gambling. Further, the growing cost-effectiveness of mobile applications is likely to expand mobile consumers in the market.

The desktop is likely to be the leading during the forecast period as it offers higher graphic design, clear image quality, and more storage space, among others, which offers a better customer experience. These are the major factors contributing to the growth, which in turn, will help the market grow.

• For instance, in April 2021, Kindred Group PLC launched Watch & Bet live streaming player that would enable Unibet mobile customers to watch & bet on live sports in real-time.

REGIONAL INSIGHTS

By region, the market has been analyzed across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

As per the global market forecast, Europe is expected to dominate the market. The presence of key players in the region is likely to drive the market’s growth over the forecast period. Moreover, the rich sports history of Europe and the widespread presence of sports-obsessed fans in the region are together propelling the market growth. Various European sports enthusiasts are highly investing in sponsoring online sports betting. For instance, in October 2020, William Hill Plc. and Caesars Entertainment, Inc. signed a National Football League (NFL) team sponsorship to maintain a relationship with the customers.

• Similarly, in May 2021, Evolution launched a full gaming suite in the United Kingdom (U.K.) with Entain PLC brands Coral and Ladbrokes with Gala Bingo and Gala Casino brands to follow.

North America ranks second in the market in terms of revenue share. Increasing digitalization, coupled with secure mobile solutions, is likely to drive demand in the region. In the United States, three states, namely, Nevada, Pennsylvania, and New Jersey, have gambling regulations, which are driving sportsbook and betting apps demand.

• For instance, in July 2021, Entain PLC launched “Gambling Responsibly America” a responsible gaming app for the United States. The app has been produced by RG24/7 and EPIC Risk Management. The app will provide customers with a tool to help & support and educational resources for anyone facing potential issues with gambling.

In terms of market growth, South America is expected to rise significantly during the forecast period. Countries such as Colombia and Argentina are focusing on regulating the gambling industry, which is driving investments in online gambling. Colombia has been an early adopter of internet-based gambling regulations and is expected to dominate the regional market share.

Asia Pacific is likely to gain significant traction during the forecast period owing to the availability of internet infrastructure and the increasing adoption of smartphones. Japan and ASEAN countries are expected to lead the market during the forecast period. As per the Summit Barcelona Digital (SBC) report, the demand for Bitcoin in gambling is accelerating in Japan.

Similarly, the Middle East & Africa is expected to show steady growth during the forecast period. The growing demand for online gaming and smartphones is expected to boost online betting in the region.

KEY INDUSTRY PLAYERS

Partnerships and Collaborations are the Main Strategies Adopted by Key Players to Expand Businesses

The key players in the market are Kindred Group Plc., William Hill Plc., StarsGroup.com, Flutter Entertainment Plc., Betsson AB, Buffalo Partners, GVC Holdings Plc., and DraftKings Inc., among others. These major players are aiming to enter strategic partnerships with local brands to widen their business presence worldwide. These players are aiming to gain expertise and understand customer requirements through partnerships and collaborations. Further, prominent gambling companies are also investing in providing new platforms and content to enhance the customer experience in the market.

July 2020 – Kindred Group Plc. announced its expansion in Indiana after successfully launching its sports betting brand, Unibet. The company is aiming at expanding its presence across the United States and globally by merging with local experts.

November 2019 – William Hill Plc. announced the launch of its online casino app and sportsbook in Michigan in partnership with Grand Traverse Band of Ottawa and Chippewa Indians. The platform offers sports bettors a new experience using a deep and exhaustive array of bets.

List of the Key Companies Profiled:

• Entain plc (GVC Holdings Plc.) (Douglas, Isle of Man)


• Kindred Group Plc. (Valletta, Malta)


• William Hill Plc. (London, U.K.)


• StarsGroup.com (Ontario, Canada)


• Flutter Entertainment Plc. (Dublin, Ireland)


• Betsson AB (Stockholm, Sweden)


• Bet365 Group (Stoke-on-Trent, U.K.)


• LeoVegas AB (Stockholm, Sweden)


• 888 Holdings PLC (Gibraltar)


• BetAmerica (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2020 – GVC Holdings Plc., in partnership with MGM Resorts International, announced the launch of an online BetMGM Casino in Pennsylvania. The company is offering 140 types of online games available on android and iOS.


• September 2020 – William Hill Plc., in partnership with CBS Sports, announced the launch of a wide range of digital content and tools for sports bettors and fans. It will offer free-to-play games, video programming, and editorial content of William Hill across the CBS Sports Digital landscape.


• July 2020 – Kindred Group PLC launched sports betting brand Unibet to gain access to sports betting fans in Indiana. Further, the company will provide customers in Indiana with a first-class sportsbook experience online.

REPORT COVERAGE

The online gambling software market report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry growth trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further offers some of the drivers and restraints, helping the reader to gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION