A report undertaken by a global technology and advisory research company predicts that the US online gambling market will be worth $4 billion by 2020. Technavio forecasts that factors such as the easing of government regulations, the wider reach of online gambling and the scope for increased contribution by online gambling to the national economy will drive the growth of this industry in the next four years. The group believes that the online gambling market will grow more than 51% from now until 2020.4
In a press statement building up to the release of the report, Technavio said that to calculate the US gambling market size, it considered the revenue generated from legal and regulated online casinos, as well as betting and lottery segments in the United States. Readers of the report will also be able to view primary market growth drivers, and challenges faced by operators. In addition, the report looks at the key trends that are emerging in the market.
Lead analyst at Technavio, Ujjwal Doshi outlined some of the benefits of legalizing online gambling on a federal level in the United States, including an increase in revenue in the form of tax. This tax, he said, could be used to generate back into society and help benefit hospitals and educational institutions. “The easing of regulations on gambling serves the wider interest of the government and may be an important trend followed by various other states thereby driving the growth of the market during the forecast period,” he said in the press release.
While there are only three states who have legalized online gambling thus far in the US (Nevada, Delaware and New Jersey), Technavio predicts that at least another five will follow suit by 2020.
The report points out that if online casinos are legalized, the contribution to the national revenue will grow significantly and many more jobs will be created. Last year alone, the US casino industry generated over 500,000 jobs and over $13 billion in tax revenue.
The wider reach of online gambling was also discussed as a trigger for the significant projected growth of online gambling in the US. The popularity of mobile and computing devices, especially among the younger generation literally brings online gambling to the fingertips of more people than every before.
“In the US, the average age of an individual visiting a casino is 45 years, whereas the average age of an online gambler is 34 years,” said Ujjwa. “The increasing presence of younger population on the online gambling platforms will be one of the significant factors driving the growth of the market during the forecast period.”
