A recent report by the American Gaming Association indicates that the casino gambling industry in the U.S. generates nearly $329 billion a year. The economic impact of the industry rose by 26% from 2017.
Overall commercial gaming revenue across the U.S. reached $60.4 billion. Sports betting revenue was $7.50 billion in 2022, up from $4.34 billion in 2021. The iGaming market revenue in the U.S. reached $5.02 billion.
Land-based operations still contribute the most revenue in the U.S.; however, iGaming and sports betting have both seen meaningful increases. iGaming refers to casino gaming or sports betting that is performed online using devices such as websites or mobile apps.
The use of online gambling and sports betting platforms has risen globally, partially due to technological advancements and partially due to the global pandemic, which kept many longtime casino goers at home.
UK Market
In the United Kingdom, the casino and betting markets are alive and well. According to a July report from the United Kingdom Gambling Commission (UKGC), the "total Gross Gambling Yield (GGY) of British gambling industry (2021-22) [is] £14.1 billion [$17.19] – increase of 10.9% when compared to April 2020 to March 2021."
The gambling market in the UK "is estimated to grow at a [compound annual growth rate] of 5.36% between 2023 and 2028," according to Technavio. Online gambling has driven growth in the market in recent years; offline operators are forecasted to step up to compete with iGaming and online sports betting.
The 2022 GGY of the online sector was £6.4 [$7.8 billion]. This saw a 6.2% decrease from 2020-2022 but an overall 12.4% increase since 2019. Technavio estimates the market will increase by USD 150.5 billion between 2022 and 2027.
Regulations and Industry Challenges
The UKGC oversees casino and betting operators in the United Kingdom. Betting and gaming has been a long-standing pastime in the UK, with the 2005 Gambling Act helping to streamline and regulate betting and gaming activities.
A major challenge faced by the UK gambling market is advertising according to Casino Gambler, an online site about legal casinos in the United Kingdom. Restrictions have been introduced to limit gambling advertising that could reach children, with some publications announcing they would no longer feature gambling or betting advertising.
Fragmented Market
As of 2022, there are over 2,000 gambling operators in the market. There are at least 175 online casinos, with well-known names dominating the industry. Brand recognition goes a long way, with betters often sticking to what they know.
The UK gambling market is fragmented, with a diverse presence of international and regional vendors. Each vendor offers something unique, competing in the market to capture the attention of potential customers.
Industry Differences Between the U.S. and U.K.
The U.S. has a population of approximately 333 million people. The UK, on the other hand, had a projected 2022 population of just 67 million. This population difference contributes to the overall market revenue of the casino and betting industries.
In the United States, each state has its own laws and regulations surrounding gambling. There is no federal mandate and some states, including Hawaii and Utah, do not have legal gambling in any form.
Other states may allow gambling but only in the form of brick-and-mortar establishments. Some states have embraced online sports betting but still do not have a legal framework for online casinos. Each state is regulated by its own commission.
Future Outlook
Due to COVID-19, many users shifted their betting activities online as physical locations were inaccessible. The relaxation of restrictions then resulted in further changes. The direction in which the industry will settle remains unknown.
Increased user experience enhances online gambling, both for casino players and sports betters; however, in the United States, conflicting laws and regulations on the state level could contribute to player preference towards physical establishments.
Future collaborations, such as the recent introduction of BetMGM in the UK, showcase an outlook of camaraderie between the U.S. and UK markets which could further boost growth.
This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make any recommendation to buy or sell any security or any representation about the financial condition of any company.
DISCLAIMER: You probably don’t need us to tell you that any form of gambling comes with risks and should not be undertaken as a solution to solve your financial troubles. It’s worth remembering the phrase...the house always wins!
If you suffer from a gambling problem or suspect somebody you know does, then we strongly suggest that you call the National Problem Gambling Hotline at 1-800-522-4700 to talk with an advisor for help and to make gambling safer for you or your loved ones. Remember all gambling sites and guides are 18+ only. Casino sites listed on our site may not be available in your region. Check your local laws to ensure online gambling is available and legal where you live. Our reviews are independent and reader-supported and we may receive commissions for recommendations made in our websites guides, this does not affect our rankings methodology and we always recommend sites we believe will provide the most enjoyable gaming experience.
Visit these organizations for free gambling addiction resources:
● https://www.ncpgambling.org/programs-resources/resources/
● https://www.gamstop.co.uk/
● https://www.gamcare.org.uk/
● https://www.begambleaware.org/
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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