iGaming in 2024: Growth, Regulations, and Drivers
iGaming Volume Worldwide
iGaming, also referred to as online gambling, encompasses a wide range of online activities, including casinos, sports betting, poker, lotteries, and slots. The global online gambling market is witnessing remarkable growth. The global online gambling industry is undergoing rapid expansion, with the online gambling market reaching $88.65 billion in 2023, growing at a robust compound annual growth rate (CAGR) of 9.3%, according to iGaming Report 2023. Projections indicate that by the end of 2027, the market is poised to attain $125.6 billion at a CAGR of 9.1%, and further surge to an impressive $583.69 billion by 2030. These impressive figures underscore the thriving nature of the worldwide online gambling market. Notably, the top five markets in 2024 globally are anticipated to be the USA, Australia, Japan, and Germany, with a diverse array of options and regulations shaping the industry in different countries.
Is iGaming legal?
The legality of iGaming, or online gambling, varies widely across different jurisdictions. Some countries and regions have embraced online gambling and have established regulatory frameworks to govern and license online gambling operators. In contrast, others have imposed rigid restrictions or outright bans on online gambling activities.
In regions where iGaming is legal, regulatory bodies are typically responsible for overseeing the industry, ensuring fair play, consumer protection, and the prevention of criminal activities such as money laundering. These regulatory bodies may issue licenses to online gambling operators that meet specific standards and compliance requirements.
It’s essential for individuals to be aware of and adhere to the legal regulations related to iGaming in their respective locations. The legal status of online gambling can change overtime as jurisdictions review and update their policies in response to societal, economic, and technological developments.
iGaming Regulations in the European Union
The regulatory landscape for iGaming varies across European Union (EU) member states, with each country having its own laws and regulations governing the industry.
Although there isn’t a specific EU-wide legislation for iGaming, EU policy makers influence regulatory developments through court rulings and policy recommendations. Individual member states are responsible for regulating their own gambling sectors, resulting in a diverse range of rules and regulations across Europe.
EU Country-Specific Regulations
Age limit is the key feature of iGaming regulations worldwide. The age limit for online gambling in the EU varies depending on the country, but generally, most regulations set the minimum age requirement at 18 years old. The online betting market in the EU is tightly regulated, with each country having its own regulatory framework. For instance, in the UK, all forms of gambling fall under the purview of the UK Gambling Commission (UKGC), necessitating online operators to acquire a license from the UKGC. France is overseen by the French Online Gaming Regulatory Authority (ARJEL), which sanctions online sports betting, poker, and horse racing. Italy’s gambling sector, including online casinos, sports betting, and poker, is regulated by the Autonomous Administration of State Monopolies (AAMS). In Spain, the Directorate General for the Regulation of Gambling (DGOJ) governs online gambling, authorizing licensed online casinos, sports betting platforms, and poker rooms.
It’s important to note that regulations play a vital role in safeguarding players’ interests, ensuring fair play, and upholding the integrity of the iGaming industry. For the most current information on regulations, it’s advisable to consult official government websites.
Can a betting company with the Curacao iGaming license operate in the EU?
While a Curacao iGaming license allows companies to provide online gambling services, including betting, it’s important to note that the legality of offering such services in the EU depends on various factors. The EU has its own set of regulations and licensing requirements for online gambling.
If a betting company with a Curacao iGaming license wishes to operate in the EU, it typically needs to comply with the specific regulations of each EU member state where it intends to offer its services. Many EU countries have their own licensing systems and may require operators to obtain a license from their respective regulatory authorities.
Additionally, the EU promotes a harmonized approach to online gambling regulations through initiatives like the European Commission’s recommendation on online gambling services. This encourages cooperation among member states to ensure a consistent and secure online gambling environment.
In summary, while a Curacao iGaming license provides authorization for online gambling, including betting, it does not automatically grant permission to operate in the EU. Companies must adhere to the individual regulations of each EU member state where they seek to offer their services and may need additional licenses from those jurisdictions.
Can a betting company with the Curacao iGaming license operate in the UK?
A Curacao iGaming license does not automatically grant a betting company permission to operate in the United Kingdom. The UK has its own regulatory framework for online gambling, overseen by the UK Gambling Commission (UKGC). To operate legally in the UK, a betting company must obtain a license from the UKGC.
The UKGC has specific requirements and standards that operators must meet to ensure fair and transparent gambling practices, consumer protection, and responsible gaming. These regulations are designed to create a safe and secure environment for players in the UK.
While a Curacao iGaming license may allow a company to offer its services in certain jurisdictions, including some international (e.g., some LATAM or African countries) markets, it does not exempt the operator from complying with the regulations of individual countries. Therefore, if a betting company wishes to operate in the UK, it must go through the process of obtaining a license from the UKGC.
Key Factors Propelling the Online Gambling Industry
The iGaming industry is experiencing unprecedented growth, driven by several key factors that have reshaped the landscape of iGaming. Let’s delve into the pivotal elements propelling this expansion and shaping the future of online betting.
Internet Penetration. The proliferation of internet usage worldwide, with over 5.18 billion people accessing the web, has significantly contributed to the surge in online gaming. This widespread connectivity has expanded the user base, creating new opportunities for operators to tap into diverse markets.
The surge in online betting popularity is driven by customers seeking convenience and accessibility. The ability to indulge in gambling from the comfort of home, coupled with 24/7 availability, has positioned online platforms as a preferred choice. A diverse array of games and betting options caters to varying preferences, attracting a broad spectrum of players. User penetration is anticipated to be 2.5% in 2024, expected to rise to 3.0% by 2028.
Surge of Mobile Gambling. The new momentum was spurred by mobile internet penetration. The widespread use of smartphones and high-speed internet has led to an increasing number of players opting for mobile devices to access gambling platforms. For instance, in the last quarter of 2023, mobile devices (excluding tablets) generated 58.67% of global website traffic. In the US, 63% of internet traffic originates from smartphones or tablets.
This trend not only expands operators' reach but also provides a seamless gambling experience on the go. Another noteworthy trend involves integrating social elements into online gambling platforms, enhancing interactivity through features like chat rooms and leaderboards. This not only adds a social dimension but fosters player engagement and loyalty.
- Regulatory Shifts. The legalization of iGaming in countries like India, Canada, and the Netherlands has created a conducive environment for industry growth. Regulatory changes have provided operators with the green light to expand their services across borders, fostering a global gaming community.
- Local Special Circumstances. The online gambling landscape is profoundly influenced by the diverse regulatory environments across countries and regions. In jurisdictions where iGaming is fully legalized and regulated, a secure environment attracts both operators and players, fueling market growth. Conversely, in regions where online gambling faces restrictions or is illegal, operators encounter challenges navigating legal barriers, potentially leading players to offshore sites and causing a revenue loss for the local market.
- Technological Advancements. Striking improvements in iGaming software, graphics, and user interfaces have heightened the allure of online games. With approximately 3 billion individuals engaging in video gaming worldwide, technological innovations continue to drive player engagement, with the number projected to exceed 3.5 billion by 2024.
- Convergence of eSports and iGaming. The convergence of eSports and iGaming has ushered in a new era of innovation and growth. Collaboration between these burgeoning industries has led to exciting developments, catering to the preferences of both gaming enthusiasts and bettors.
- Secure Payment Systems. The availability of secure and efficient payment methods on iGaming platforms has bolstered player confidence, facilitating seamless transactions. Robust payment systems have streamlined the gaming experience, ensuring hassle-free deposits and withdrawals.
- Innovative Marketing Strategies. iGaming operators and marketing agencies have devised creative campaigns to resonate with younger demographics, effectively expanding the player base. These innovative marketing tactics have played a crucial role in attracting new players and driving industry growth.
Underlying Macroeconomic Factors. The growth trajectory of the online gambling market is intricately linked to macroeconomic factors. The disposable income and spending patterns of consumers significantly impact the demand for iGaming services.
Economically robust regions with high disposable income exhibit greater willingness among players to spend on online gambling. In contrast, regions facing economic uncertainty or lower disposable income may experience subdued demand. Additionally, technological advancements and robust digital infrastructure play a pivotal role. Access to high-speed internet and reliable payment systems are critical for a seamless online gambling experience, contributing to higher adoption in countries with well-developed digital infrastructure.
In summary, the online gambling industry is poised for substantial expansion, fueled by global internet penetration, regulatory advancements, technological innovations, and inventive marketing endeavors. As the industry continues to evolve, these key factors will remain instrumental in shaping its trajectory and unlocking new opportunities for growth. With 6 years of expertise, Satchel.eu is a seasoned EU fintech firm that provides dependable payment solutions for iGaming companies and related businesses.
