A recent study by a market research analyst for Technavio reveals that online gambling could surpass the $4 billion mark in the United States by 2020.
Online gambling is an up and coming industry in the United States. Currently, there are only three states that offer such gaming, be it casino or poker play. Delaware, New Jersey and Nevada all passed legislation in 2013 to offer such gaming options and have remained the only states in the US that legalized the option in the past three years. Several states have considered legalizing the option over the past few years including California and Pennsylvania. It is just taking time for other states to figure out how they want to enter the industry.
Study Predicts the Future of Online Gaming
When online gaming was first being considered in the United States, there were estimates of how much money would be created from the industry. The actual earnings were far under what was expected. Now that the industry has become established, each state has been able to earn solid revenues and a recent study has shown the US could earn as much as $4 billion by 2020 when it comes to online gambling.
Technavio analysts of media and entertainment have predicted that the online gambling market of the US will grow at a CAGR of over 51% from the time frame of 2016 to 2020. The report considered the revenue generated from legalized online casinos, betting and lottery gaming in the US. Speaking of the study, lead analyst for the company, Ujjwal Doshi, stated that in 2015, the global online gambling market is expected to grow at CAGR of more than 9% during the period of forecast. Online betting and casino gaming combined would account for 70% of the revenues generated from the market. Key revenue generating countries for online gaming include the US, UK, China, Australia, France, Germany, Australia and Italy.
Top Operators in the US
There are several operators of online gaming in the US spread across various markets. According to the research, 888.com, Borgata Hotel Casino & Spa, Betfair and Dover Downs are the top vendors in the US that offer such gaming. The market has been highly competitive due to the established vendors such as those mentioned above, in both large and small scale.
The vendors are able to compete amongst each other based on several factors including pricing, portfolio of products, availability of applications, credibility, prize money offered, payment options and more. Many of these vendors have been able to sustain a top position due to investment efforts. Such investments include developing and designing online offerings, gaining new players and expanding their facilities.
Computing Devices Rule
When taking part in online gaming in the US, players have two options, a computing device or a mobile device. A computing device is a computer or laptop that can be used for online gaming. This seems to be the method of choice for gamers with 69% of the overall market share coming from this segment. Gamblers like to use the computer devices because the screen is larger which creates a far better gaming environment.
It is believed that the segment of computing gaming will grow at CAGR of 43% or so. Mobile gaming is also popular but is mostly used for players who are on the go or who want a quick game. Those who take part in computing gaming are playing for longer periods of time.
For now, it seems that if states continue to review legislation, others will eventually join the three that already offer online casino and poker gaming. This will cause the online gaming industry of the US to grow significantly. Only time will tell if these estimates are true and if the market will see such growth by the time 2020 arrives.