Since ancient times, wagering on sports has been a part of our culture. Nonetheless, a great deal has transpired between the time when gamblers wagered on gladiatorial clashes and the present when they wager online while lounging on their couches.
A report we got a hold of (by EGBA) claims that the industry for online gaming and betting was worth $50 billion worldwide in 2019 and is expected to grow to $100 billion by 2026. From 2019 to 2026, the global online gaming and betting market is anticipated to expand at an average annual rate of growth of 10%.
Europe and North America are now the regions driving the majority of the world’s gambling industry growth. This is due to factors including rising per capita income, widespread acceptability, a younger generation’s growing interest in gambling, and an increase in gaming’s legalization.
As sports betting continues to advance, many customs and patterns have appeared in various marketplaces. There are significant regional variations in the sports betting regulations and opportunities depending on the political and cultural context. International bookmakers in particular must overcome the difficulty of tailoring their goods, services, and marketing to the demands of the various markets.
The unique traits and customs of the various marketplaces will be looked at in further detail and addressed in this article with reference to current developments. We will talk about the markets in Europe, the Middle East, and Africa in part one.
Europe
For online gambling, the European market seems to be the biggest and most crowded. This continent accounted for 49.2% of something like the worldwide online gambling market in 2018, and this share held steady until now. With the legalization of sports betting in certain US states, European businesses are already starting to establish themselves there, expanding their impact and bringing their knowledge to new markets.
In the realm of gaming, there is currently no sector-specific EU regulation. The EU nations are free to decide how they want to set up their gambling services, though most of them allow at least some online gaming.
Since most businesses employ expanding into regulated markets as a tactic to produce sustainable revenue, the market earns the majority of its revenue (as defined by gross gaming revenue, or GGR) in the UK, Germany, France, Spain, and Italy. Football and tennis are the two most popular sports in Europe.
The exponential popularity and growth of live casinos and sports betting, the blooming hardware and software advances, as well as the increased accessibility and usability of the Internet, were the primary drivers of the expansion of the European online gambling business. The European iGaming market is forecast to expand gradually until 2025, with an average annual growth rate of approximately 10%. As a result, the internet gambling industry is expanding far more quickly than brick-and-mortar casinos or betting shops.
The EU’s online gaming market is expected to grow from € 22.2 billion in 2018 to € 29.3 billion in 2022 in terms of economic scale (or gross gaming income). Strong development in the online industry in nations like Spain, and yet also Italy, France, and Germany may be caused, among other things, by the fact that these nations’ overall gaming markets have relatively low Internet penetration rates in comparison to other European nations.
Additionally, the legalized sports betting industry in Europe is expanding consistently. With a channeling rate of 73.5% in Europe in 2019, over three-quarters of Internet gambling activity took place in regulated marketplaces, with the remaining 26.5% taking place in gray and illegal markets. It is anticipated that online gaming would expand to 80.1% of the regulated industry by 2022 before significantly declining to 79.6% by 2025.
Northern Africa & Middle East
Casinos, sportsbooks, and online betting are typically prohibited all across the Middle East. Despite the legal restrictions that forbid Muslims from wagering, Middle Eastern gamblers contribute significantly to the profits of the worldwide gaming business.
It is interesting to note that gambling has a lengthy history in Islamic culture as well, as magnificent gambling industries were once flourishing amongst ancient civilizations like the Assyrians. Enormous exhibits and gambling events with large attendance were staged by bookmakers and auctioneers. During this time, the region’s contemporary bookkeeping and bookmaking businesses started to emerge. A vibrant gambling culture already existed in Egypt’s ancient civilization.
Nowadays, a lot of countries with a Muslim majority limit access to gambling games to outsiders or non-Muslim guests; in order to enter, players must show their passports. However, many people in the Middle East hold dual citizenship and are still able to enter casinos. Additionally, the operation of these casinos is frequently hampered by excessive tax rates and unnecessary regulatory hurdles. For instance, the about 14 gambling venues and websites of Cairo in Egypt, many of which are listed at bookmaker-expert.com/country/egypt/, produce GGR of more than US $ 200 million per year. However, the casinos are obligated to pay a gaming fee of 50% (GGR), which is due daily.
The majority of Middle Eastern countries permit viewing foreign websites, despite the fact that the spread of the casino business is restricted by strict Islamic rules. Because less stringent restrictions are in effect when foreign online gambling operators are engaged. Due to this, Middle Eastern software enterprises are increasingly outsourcing their titles to foreign casinos that welcome gamblers from the region online and have a significant online presence. Online casinos are currently made available to people in specific countries, including Lebanon, Israel, Egypt, and the United Arab Emirates.
Only recently has sports betting gained enormous appeal in the Arab world. Football is the most popular athletic event in Asia, in part because some of the strongest national football teams and leagues are found among the Arab countries and the regions of the Middle East. Other popular sporting events include camel races, formula one, and horse races. The residents are passionate about both domestic and international athletic events, and they wager on their favorite sports teams on well-known worldwide online betting sites. However, due to the frequent absence of interpretations in Arabic and other regional languages, these platforms only partially satisfy the wagering needs of the Arab population.
It is crucial for a betting supplier to thoroughly analyze this market’s requirements and customize the betting experience for the local market.
The Rest of Africa
According to experts, the African continent’s economy may change over time as a result of the continent’s expanding gaming business. Africa is viewed as a viable location where they can expand by many top iGaming operators. Countries like South Africa, Nigeria, and Kenya present a wealth of investment options due to their dynamic economies and love of online sports betting. An estimated $40 billion was spent in South Africa, Kenya, and Nigeria in 2018 alone.
Currently, most African sports betting focuses on wagers on horse racing and football. Horse racing, which has been a popular sport in North Africa since the 15th century, is quite popular. According to reports, Africans have been making bets on football since 70 years ago. The majority of gamers from the continent have accounts on globally accessible online bookmakers like Betway or Bet365.
The biggest gambling market in Africa is South Africa. While the National Gambling Act of 2004 effectively outlaws all games of chance, including online casinos, slot machines, and card games, sports betting and horse racing wagering are the only forms of gambling that are permitted in physical or online locations that have been endorsed via one of the nine PLAs (provincial licensing authorities). More than half of South African citizens routinely wager on sports, as per data from the South African government. According to certain forecasts, gross gaming income would top $ 2.3 billion by 2023.
Nigeria is Africa’s largest gaming marketplace (measured by the GGR), with a proportion of 7% of the entire continent and by far the greatest population and gross domestic output in Africa. In 2004, the ban on gambling that had been imposed on Nigeria was lifted, allowing for investment in the industry. A 2014 survey found that 30% of Nigerians between the ages of 18 and 40 regularly bet on sports, representing a market of more than 65 million gamers who wager an average of $15 per day.
Football is the most beloved sport on the continent, and this continent’s tremendous love of sports is one of the factors that has contributed to the consistent increase of the sports wagering sector. Rugby, cricket, and athletic competitions are some sports that are highly regarded in Africa. African kids are also avid followers of FIFA events and other European leagues. The majority of players typically wager on the biggest European leagues, including the EPL, La Liga, Serie A, and Bundesliga; the EPL is arguably the most well-known competition on the continent. However, other European competitions like the UEFA Europa League and UEFA Champions League are also highly well-liked.
The young population of Africa is what gives the continent’s sports betting market potential. Over 200 million Africans, according to statistics, are between the ages of 18 and 24. This younger generation has no issues using their smartphone to place mobile sports bets. The high levels of unemployment are just another reason to make a fortune playing online poker.
Therefore, it is imperative for betting operators in the African region to have a mobile or online first strategy with an offer tailored to the tastes of the local populace.
Conclusion
The strategy of the majority of betting organizations is based on the long-term strong trend toward online sports betting and gambling, particularly in Europe and Africa. Future industry growth is also supported by the cultural and socioeconomic contexts in each market. The possibilities of this marketplace cannot be doubted, even though the Middle East still presents difficulties due to the political, social, and linguistic circumstances as well as language requirements.
