The global market for mobile gambling is estimated at $250.4 billion by 2027
The expected value of the global mobile gambling market by 2027 will be $250.4 billion, and 38 companies will share the influence among operators. Such data was provided by the analytical agency Research and Markets.
The company published its ninth regular report on 185 pages. It talks about how the pandemic will affect production and purchasing power in 2020-2021. It also discusses short-term, gradual recovery by key geographic regions.
In 2020, amidst the crisis of the COVID-19 pandemic, the global market for mobile gambling is estimated at $79.5 billion. By 2027, analysts predict an increase in the amount to $250.4 billion, while the total annual average growth rate (CAGR) will increase by 17.8% compared to the current year. This year, the segment is expected to increase by 17.6% compared to the same period in 2019 and reach $141.4 bln.
An early analysis of the impact of the pandemic and the crisis triggered by it showed that by 2027 the casino sector’s CAGR will exceed 18%. According to current data, the segment holds 11.9% of the global market for mobile gambling.
Mobile gambling market in the United States is estimated at $21.4 billion this year. There is a concentration of 26.9% of the world market volume. The second largest market is China. By 2027, its value is estimated at $59.1 billion. Analysts believe that the sector will lag behind the average annual growth by 22.9%.
The markets of Japan and Canada are expected to increase CAGR by 12.8 and 15.7%, respectively, and Germany – by 14%. The report also states that in seven years the total value of the gambling market in the rest of Europe will reach $59.1 billion.
And the world poker segment, which includes the local markets of the U.S., Canada, Japan, China and Europe, this year accounted for $9.9 billion, while the total average annual growth rate increased by 13.9%. By the end of 2020, total revenue will amount to $24.5 billion, the report says.
In contrast to the casino sector analysts call Chinese suppliers the most rapidly developing in the field of poker. By 2027, the total market in the Asia-Pacific region (including Australia, India and South Korea) will reach $39.4 billion, while Latin America will expand the sector by only 16.4%.
The most influential and competing companies in the report are Betfair Group PLC, the world’s largest betting exchange, and Ladbrokes Coral Group plc, a British gambling and betting company. The study analyzed data from 38 global gambling companies.
EGBA adopted a code for responsible online gambling advertising
The European Gambling and Betting Association (EGBA) adopted the first pan-European code on online gambling advertising. The Act details the powers of self-regulation in creating a secure digital environment for online gamblers.
The code applies to all members of the association who work in the territory of European countries. It is also open for signing by other gambling operators, media and related companies that have obtained or are planning to obtain a license from the EU, European Economic Area and the UK. The document has already been ratified by the national gambling associations of Belgium, Denmark, the Netherlands, Norway and Portugal.
The norms of the document regulate the Internet gaming advertising industry. The authors took as a basis the provision of the European Union Audiovisual Media Services Directive. It states that self-regulation should be a key element in protecting minors from the harmful effects of online gaming advertising.
The Association has developed an algorithm by which gambling operators and providers will protect children from such content.
EGBA requires to moderate the information, limit the time of gambling advertising during the hours of broadcasting children’s content, apply age control on the platforms, use all available marketing opportunities in social networks to check the age of the user. The code also includes guidelines for refusing sponsorship and other cooperation with children’s organizations and events. There are a number of sanctions for violating the rules. Next, the associations plan to consider how to effectively monitor and evaluate the implementation of these new self-regulatory standards.
“The aim of the document is to strengthen responsible advertising measures in a number of European countries. We are very pleased that EGBA members are committed to applying the Code and to demonstrating their commitment to responsible advertising. With special restrictions aimed at social media and the protection of minors, the Code will define industry standards for responsible advertising and help strengthen consumer protection for European citizens”, comments EGBA Secretary General Maarten Heyer.
Banning iGaming during COVID-19 – Are the actions of the authorities justified?
The closure of the online casino market in Latvia was followed by a corresponding reaction from operators who openly claimed that their rights had been violated during such a difficult period for the industry.
Decisions taken by the authorities
It is known that the head of the country Egils Levits agreed with the bill to close casinos, including those working in the Internet. After signing the document on March 22, all casinos, betting shops and bingo halls were closed in the country. However, the ban did not apply to the lottery market. The decision was taken as part of an emergency situation, as well as to preserve the financial situation of citizens, who, according to some lawmakers, could fall under the excessive influence of gambling during quarantine.
At the same time, it is known that Deputy Yulia Stepanenko proposed amendments according to which online operators could continue their work during the coronavirus pandemic. Deputy Vyacheslav Dombrovskyy shared the same opinion, saying that even after the ban on the market, there would still be small transfers of money between players and unlicensed operators, which the state would not be able to track. In addition, the representative of the legislature noted that the market will lose part of the tax deductions, and the shadow market will only gain a foothold among the country’s gamblers.
Opposition of gambling operators
The participant of the gambling sector, which gave additional publicity to the topic, was the company Enlabs, working under the brand of online casinos and Optibet bets and his partners casino mfortune. Later the company Novomatic, an online operator of Alfor Group, joined its position. In April, it became known that Enlabs sought support from the Constitutional Court to challenge the Seimas’ decision. One of the company’s arguments against the restriction was that the legislators violated the law on property rights, as well as EU regulations on guarantees of freedom of business. The operators stressed that expropriation of property in the public interest is allowed only in exceptional cases and only with reference to certain laws. Also, the company experts admit that the decision of the authorities was not only to remove players from the threat of forming a problem gaming, but also dictated by the excessive haste of legislators. In turn, Latvian Gaming Association (LGA) has already prepared a program of measures to reduce the spread of coronavirus pandemic.