The global online gambling market size is expected to reach USD 127.3 billion by 2027, registering a CAGR of 11.5% from 2020 to 2027, according to a new report by Grand View Research, Inc. The market is expected to gain traction over the forecast period. Growing popularity of betting across the globe and freemium model in online gambling are among the potential opportunities likely to unfold in the next few years.
Increasing adoption of smartphones and easy access to casino gaming platforms are currently driving the market. Factors such as increasing internet penetration and availability of cost-effective mobile applications for betting are also expected to contribute to market growth over the forecast period. According to the American Gaming Association (AGA), as of 2018, approximately 2,800 sites are active online and offer activities including bingo, poker, and lottery.
Ease of sports betting using a computer or smartphone coupled with the proliferation of sports betting ads across the globe is expected to propel segment growth over the forecast period.
- DraftKings (NASDAQ:DKNG): Well known for its daily fantasy sports challenges, this newly public company has added a sportsbook. It has roughly a 30% market share of U.S. online betting, according to research firm Eilers & Krejcik Gaming. On Sept. 3, DraftKings signed a deal with the Chicago Cubs to be their official sportsbook, a day after announcing NBA legend (and enthusiastic gambler) Michael Jordan has become a special advisor to the company’s board. It also launched online sports gambling in Colorado on May 1, noting a key priority is to enter “new states at the earliest opportunity.”
- TransAtlantic Capital Inc. (OTC: TACI) is the first US company to acquire a gaming platform in East Africa. SUREBET, a Kenya licensed sports betting and lottery company is poised for growth in a country with 40 million Kenyans. The unique advantage Kenya has is mobile money transfer started long before Cashapp or PayPal. Kenya has a mobile market of 5 plus million daily gamers who average 20 USD in betting. TACI being the first public company to secure a footprint in East African Gaming gives an attractive opportunity for USA shareholders to participate in the financial growth of Africa. While many of the top players may reside in Europe or the US, the African continent is looking to share in a global market that pulled in over $1 billion in 2019. It was reported that in 2018 that Nigeria, Kenya, and South Africa place bets totaling in excess of 40 billion USD. Historically, sports betting in Africa focused mainly on Soccer and horse racing. The acquisition of SUREBET coincides with a growing interest in North American football, basketball, and baseball. The global suspension or cancellation of most sporting events during the pandemic has left punters without live games to bet on. While traditional gaming and gambling have faced unparalleled losses, entertainment streaming and gaming have reported a surge in activity since the national lockdown came into effect on 27 March 2020. “SUREBET is a nice addition to our global platform of cannabis, psilocybin,” says Julies Jenge CEO of TransAtlantic Capital. “Having experience on the continent. Most people view Africa as a country that seems to always be in need of aid, but the 1.2 billion Africans on the continent are the fastest-growing segment of gamers.” The African continent is the fastest growing gaming population on the planet. Mobile gaming generates close to half of the revenue that the gaming industry gets annually on the African continent resulting in a huge market for gaming on mobile phones. More than 200 million Africans are below 35 years, and this figure might double in a decade. By 2050, Africa’s young people, i.e., those aged between 0 and 24 years, will increase by nearly 50%. TACI’s acquisition gives additional revenue to our shareholders and continues to place the Company in a global economy.
- Penn National Gaming (NASDAQ:PENN): Heavily publicized for its deal with Barstool Sports, this traditional casino operator is expected to launch a Barstool-partnered betting app for the upcoming NFL season. Penn currently has minimal market share, as the aforementioned betting app has not yet fully launched. The company recently announced the app’s soft launch, which will be only for Pennsylvania residents starting in mid-September. Although it lags in current exposure, the Barstool betting app is sure to garner a massive audience, since its sports social-media account has nearly nine million followers.