Online Gambling Market on Track to Hit $150.5B by 2027

The industry is expected to grow at a compound annual rate of 11.03% with the key driver being mobile gaming. Smartphone penetration is largely tied to greater interest in online gaming and hobbies such as casinos, sports betting, fantasy sports, and more.

Strong Growth of Global Gambling Driven by Mobile

Casino games are gaining momentum in both their real money and social forms, leading to higher engagement. Plus, smartphones now offer easier payment options which dovetail nicely with online play. However, there are risk factors that may hinder growth still.

Some of those risks have to do with security and credibility issues, as differentiating between regulated and non-regulated platforms could be a challenge for consumers and requires a concentrated effort by the industry. Data security issues are also another thing that people worry about.

Geographically, Asia-Pacific is expected to notch up the biggest growth, with markets such as India, Japan, Australia, and South Korea all shaping up to pick up the pace of gambling. Things will slow down in China and Macau, but Chinees customers will most likely travel to the region to quench their thirst for gambling, contributing to global growth.

North America, though, is also poised to explode in terms of online gambling. While countries such as the United States and Canada have focused mostly on sports betting so far, iGaming is also gathering steam, placing the region second to APAC but not by much either. Desktop gambling is similarly expected to be a contributor through 2027 but Technavio expects to see stagnation of the vertical by then.

The logic is that users will make sure to begin switching to mobile almost fully when it comes to gaming and gambling. Another big prediction for the sector is that virtual reality gambling will slowly start to encroach on the mainstream, as the entry-level cost continues to fall off. VR gambling is expected to be worth $1.74 billion in 2025.

Artificial intelligence should also play a similarly important role in the development and growth of the market. AI is currently used to identify consumer trends and build products that are intended to help protect consumers from excessive gambling. The technology will help shape the industry as a more sustainable business and propel it forward, Technavio estimates.