Features of the global gambling market
While global business revenues grew 9.6% in 2010, earnings in the Europe, Central Asia and Africa region declined 7.2%. In Canada, revenue also fell 2.9%. In the United States, business remains at almost the same level.
The market in Asia is growing at a tremendous pace. On average, from 2010 to 2015, the market volume increased by 18.3% annually. As of 2016-2017, the Asian industry occupies 43.4% of the total market volume. The leading centers are Macau and Singapore.
In 2015-2016, the revenue of the global gambling business was distributed as follows:
- Asia and the Pacific – 43.4%;
- USA – 40.1%;
- EMEA (Europe, Central Asia and Africa) – 10%;
- Canada – 3.4%;
- Latin America – 3.1%.
Gambling business in Europe
The gambling business in Europe (EMEA region) continues to grow gradually from 2010 to the present. In 2016, the revenue amounted to USD 84.9 billion. The land market is growing by 3% annually.
At the same time, the online market in Europe is growing rapidly. The main growth centers are Spain, Denmark and Italy. The UK has the largest share, followed by Germany and the Scandinavian countries.
Most of the European gambling market is highly regulated. France, England and other countries in the region have long-standing codes of gambling laws. In most European countries, online gambling is prohibited or concentrated within the state.
As a rule, lottery, bingo and other similar games are a state monopoly in European countries. In Scandinavia, almost all gambling business is owned by state-owned companies. In other countries, most of the destinations, except for the lottery, are given to private operators.
The UK gambling regulator, whose license is considered prestigious all over the world, is the Gambling Commission. In September 2015, there were approximately 3,000 licensees in the United Kingdom.
The most popular area of gambling is sports betting; there are 8,819 betting points operating in the country. Also, 148 casinos, 615 bingo halls, 484 lotteries, more than one and a half thousand gambling sites for adults and family centers operate here.
The Danish market is operated by the state-owned company Danske Spil, which holds a monopoly on the lottery and betting, as well as foreign operators. The country has 14 land-based casinos and over 42,000 slot machines. Online business is prohibited. The total industry revenue is EUR 1.12 billion annually.
More than 40 casinos operate in Spain. The online market is developing strongly – in 2015 alone, its growth amounted to 26% in the total volume of the industry. The most popular destination is sports betting and online casinos.
The industry as a whole is regulated by the state, and in the provinces – by local authorities. Legislation in different provinces can vary greatly.
The most popular gambling games in Italy are slot machines. They collect about EUR 4.5 billion annually in bets. After them there are scratch cards and lotteries, then sports betting. The total revenue of the entire industry is over EUR 54 billion.
Malta Gaming Authority is an international organization that issues licenses to gambling operators. The country was one of the first to carefully develop online business regulation. Together with the UK, Malta is considered the most reputable jurisdiction in the gambling business.
In Germany, each state has its own gambling regulator. The legal market receives EUR 24 billion in revenues. The most popular destinations are slot machines, lotteries and sports betting. Online business is prohibited in the state.
Gambling business in Africa
The gambling business in Africa is concentrated mainly in South Africa. The market’s gross revenue is estimated annually at about 26 million ZAR (1.92 million USD). The revenues of the illegal market are estimated at 140 million ZAR (10.7 million USD). In 2015, the growth in the volume of the gambling business amounted to 15%.
Online gambling is prohibited in South Africa. Only sports betting is available. The most popular direction is casino games. Casinos account for about 70% of the South African gambling market. Regulators in South Africa are the National Lotteries Commission and the National Gambling Board.
US gambling business
Gambling in the United States is allowed on Indian reservations, on cruise ships and in the state of Nevada. The total market revenue is 71.1 billion USD annually.
Each state has its own set of gambling laws. There are also federal laws. Market regulators are state administrations and the American Gaming Association.
There are over 1,600 casinos in the United States. Online gambling is generally permitted, but financial transactions related to online gambling are prohibited. There is also the Gaming Association USA, which unites market participants – manufacturers, distributors and operators.
Latin America gambling market
The largest gambling markets in Latin America are Argentina, Brazil, Mexico and Colombia. In general, the gambling business in Latin America suffers from the lack of a proper legal framework. As a rule, laws are not clearly spelled out, or responsibility is given to local authorities. This creates too many illegal business opportunities.
Latin America is a promising region for online gambling. While he is in an illegal and semi-legal position. But during 2016-2017, the leading countries of Latin America must adopt new legislation, which, among other things, will regulate the online market.
In Argentina, the provincial authorities are in charge of regulation. Each province has its own gambling market laws. The online market is allowed, however, operators must also contact the provincial authorities to purchase licenses.
The gambling business in Brazil is almost completely banned. The government has been working on legislative reform since 2012. The revenues of the illegal market are estimated at USD 6.4 billion. Brazilian gamblers travel to neighboring Uruguay, where gambling is legal.
The gambling business is handled by the Gambling and Raffles Bureau. Most of the directions of gambling are given to private operators. The industry’s annual revenue is estimated at approximately USD 740 million.
Asia gambling market
Asia is one of the fastest growing gambling regions in the world. It is here that the modern gambling capital of the world – Macau is located. Other leading gambling centers include Singapore. Competition from the Philippines, South Korea, and Japan is also growing.
The main regulator in Macau is the Macau’s Gaming Inspection and Coordination Bureau. Macau is the only area in China where gambling is legal.
As of 2016, Macau’s land-based casino revenue is not growing due to a long campaign against corruption and slow economic growth. However, industry revenues are held at USD 28 billion annually.
The main trends in the development of the gambling business are primarily an orientation towards the online market and new technologies. Progressive directions of gambling appear in the USA. For example, daily fantasy sport is gaining more and more popularity.
In general, the gambling business continues to develop. Leading and developing countries in the world are improving their legislation. This allows the gambling industry to integrate into society with minimal risk.