Global Gambling Industry
The worldwide market for casinos and gaming is a part of the global leisure industry. The sector recorded almost 8% expansion in 2010 to reach close to $382 billion, reports MarketLine. The industry is forecast to exceed 3% growth in the five-year period ending 2015 to total nearly $513 billion. Lotteries represent the leading segment of the global casino and gaming industry (excluding the “other” segment), generating more than 29% of market value. Gaming revenue varies greatly depending on each region, with certain nations putting a ban on gambling while others allow it.
The gambling sector encompasses purchasing lottery and raffle tickets, casino table gambling, football pools, and Grand National betting, reports Koncept Analytics. Despite its illegality in certain regions, gambling contributes significantly to the national economies through tax revenues. The sector is little affected by economic recession, and is also an important employer.
Xerfi classifies the main gambling companies into four profiles, namely resort-based casino groups, state lotteries, gaming machine operators and online players. Competition between players is partly limited by state-based regulations. This also insulates industry players somewhat from illegal gaming operators.
The global gambling industry is dominated by developed nations, with the US, the EU and Japan combined accounting for close to 70% of the overall market. The gambling sector is expected to record significant growth in emerging markets like Asia and Latin America over the coming years. Technology will continue to play a pivotal role in developing the global gambling industry, with internet gaming and mobile gaming reaching an ever-expanding customer base.
- The worldwide online gambling sector generated revenue of almost $30 billion in 2010, having recorded yearly growth of almost 14% for the four preceding years, according to research from MarketLine. Market growth is expected to slow to a yearly rate of just over 9% between 2010 and 2015, when it should exceed $46 billion. Sports betting represented the leading market segment in 2010 in terms of revenue, generating more than $12 billion, and accounting for more than 40% of the market.
- Digital gambling, which includes mobile, digital TV-based and online services, continues to attract a rising number of customers. Obstacles to market entry include strict regulation throughout this highly competitive market segment. Operators are focusing on M&A to boost revenue and limit risk, reports Business Insights. Gambling operators are also concentrating on moving into the digital gambling domain to offer mobile and online services.
Regional Market Share
- The casino and gaming industry in the US generated almost $89 billion in 2010, having recorded yearly growth of almost 1% for the four preceding years, reports MarketLine. Market growth is expected to accelerate to a yearly rate of 5% between 2010 and 2015 to exceed $111 billion. Casinos represented the leading market segment in terms of revenue in 2010, worth over $30 billion or more than 34% of the overall market.
- Asia’s gaming sector is recording strong growth, prompting US and UK operators to move into this region, reports AM Mindpower Solutions. Macau, in particular, is recording strong regional expansion, with a casino sector worth almost $34 billion in 2010, up from just over $13 billion two years previously. Macau’s gaming sector is expected to maintain a yearly growth rate of 16% thanks to the opening of new casinos, increased economic growth and better global recognition.
- According to KeyNote, the UK betting and gaming sector recorded a 12% decrease in expenditure in 2009 due to the economic recession. Expenditure rose almost 2% in 2010 following a degree of economic recovery to exceed $14 billion. The National Lottery generated sales of more than $9 billion in 2011, and remote gambling generated more than $19 billion in the first nine months of 2010. Other segments – including football pools, bookmaking, and bingo – saw revenue decline in the same year.
- The UK online gambling sector continues to record climbing turnover due to bookmakers launching applications for mobile devices. It remains to be seen whether state laws concerning online gambling products will be changed. New regulations would mean operators need to acquire a license to offer online gambling products. Overseas operators would also have to apply for a license to sell their gambling products in the UK. Spending on games of chance is expected to witness a 9% increase over the four-year period ending 2015 to reach almost $16 billion.
Leading players currently operating in the global casino and gambling industry include Bwin Partygaming, Las Vegas Sands Corporation, Betfair, Caesars Entertainment, La Française Des Jeux, Maruhan, Lottomatica, MGM Resorts International, Lucien Barrière, and International Game Technology.
The global casinos and gambling industry is expected to continue growing over the coming years due to product innovation that will allow operators to benefit more from technological advancements and mobile gaming.
Leading Industry Associations
- European Casino Association
- American Gaming Association
- Australasian Casino Association
- Casino Operators Association
- National Indian Gaming Association
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