The International Betting Integrity Association (IBIA) and H2 Gambling Capital have released a research report on the future of the betting market. According to the report, global betting turnover is expected to reach $767 billion by 2025.
This means that the regulated global betting market is forecast to have a gross win of $106 billion over the next few years.
Global betting revenue in 2019 was $74.1 billion from a turnover of $490 billion. The report predicts that betting - which represented 16% of total gambling revenue in 2019 - will grow exponentially. Indeed, betting is forecast to grow at a rate of 6.3%, more than double that of the industry as a whole (2.7%).
Regulated markets have increased their revenue according to the report, which shows a growth in profits for onshore licensed betting venues rising from 57.7% in 2012 to 73.6% in 2020. The forecast predicts that this number will reach 76.6% by 2025.
Offshore licensed gambling is predicted to give ground to the locally regulated sector over the next few years. Even though it made up 42.3% of the market in 2012, it declined to 26.4% in 2019 and is predicted to fall to 23.4% in 2025.
Online betting overtook retail in 2020, with a $40 billion gross win.
The increase in online betting revenue is due in part to the impact of the COVID-19 pandemic on retail. However, predictions don’t see the online sector giving up that advantage in the near future. By 2025, the online betting market will reach a $62 billion global gross win, while retail will reach $45 billion.
The online market is dominated by mobile betting, which in 2019 overtook betting on desktop and laptop devices. According to these forecasts, mobile will control more than 60% of online betting by 2025 and remain dominant. To remain competitive in the betting industry, new online betting venues will have to optimise their experience for mobile play or develop dedicated apps.
Football accounts for more than 50% of the sports betting revenue. Famous US sports leagues, such as the NBA, are expected to see significant growth as well.
According to the report, the largest betting market is in Asia (47.2%), followed by Europe (36.3%) and North America (6.7%). However, North America’s market is set to expand and reach 12% by 2025.
