Online Gambling Industry Statistics
The 2019 Gambling Industry Report from iovation provides an alternative perspective on the state of the online gambling industry.
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Global online gambling market is projected to grow at a CAGR of 8.77%, during the forecast period (2019 - 2024). The online betting is the fastest growing segment during the forecast period. Artificial intelligence, Chabot, and machine learning have taken over the market. Online Gambling Statistics World gambling statistics show that around 26% of the population gamble. That means around 1.6 billion people worldwide gamble and 4.2 billion gamble at least once every.
The report is based on an analysis of over 518 million transactions from more than 100 gambling operators and platforms. All are customers of iovation’s financial transaction security services.
“Following the money” offers insights that other gambling studies don’t have the granularity to see.
Diving into iovation study results
The report identifies three key themes for it findings:
- Mobile transactions skyrocket
- Game abuse and cheating increase but level out
- Credit card fraud continues steady climb
Iovation makes the case that using its services can:
- Provide a superior player experience as a market differentiator
- Assist operators to manage regulatory risk
- Integrate customer authentication with next-generation fraud prevention, to protect against both existing and emerging threats
Jon Karl, iovation EVP of Corporate Development and co-founder:
“… there are still some constants we can rely on. While fraudsters may have adapted their tactics over the years, at the heart of every online fraud attempt — whether through the web, an application or via a mobile browser — is a customer device.”
Online Gambling Industry Statistics Articles
Mobile now 70 percent of online gambling transactions
The last five years are marked by the continuing expansion of mobile gambling. Not only are players using their mobile devices to gamble, they are using them to pay for their online gambling.
Back in 2012, the growth rate for mobile financial transactions compared to 2011 was just 6 percent. In 2018 the growth rate had soared to 95 percent.
Iovation found that 70 percent of all online gambling transactions are now made using mobile devices.
Growth rate for game abuse, cheating falls steeply
Game abuse and cheated are perennial problems for gambling operators.
The most prevalent problem is bonus abuse. In the past three years, iovation records bonus abuse rising by 287 percent. Operators are responding to the threat by enhancing their Know Your Customer (KYC) processes with predictive analytics.
This new technology not only helps operators monitor and forecast potential fraud. It also provides “better targeting for upsell opportunities and premium promotions.”
The report also notes that cheating continues to grow. In 2018, the growth rate was 12 percent. That’s still a high number, but much less than the 55 percent recorded in 2017.
Where iovation sees fraud potential
A particular risk that iovation identifies is organized fraud rings:
“Lone bad actors and serial cheaters aren’t going away, but a new class of organized fraud rings that are working collaboratively across the globe poses a major threat.”
Iovation concludes:
“iGaming businesses must evolve their response to such threats. Innovative technologies such as device intelligence, device-based authentication and data analytics have proven essential in helping operators to distinguish threats from the mass of legitimate players.
In an environment where players expect payouts immediately, risk signals will have to be interpreted even faster with intelligence from disparate data sources integrated into dynamic decisioning rules.”
Iovation measures regulatory risk by growth of fines
Going outside its transaction data to provide context, iovation calculated that in the UK, regulatory fines against gambling operators rose from £1.6 million ($2.1 million) to £18 million ($23.6 million) between April 2017 and 2018.
A further round of fines in November 2018 totaled £14 million ($18.4 million).
One of the regulatory risks that can easily lead to fines is self-exclusion. The report found some disturbing statistics.
“During 2018, we saw nearly a million attempts by devices associated with self exclusion to access one or more of the digital properties in our network of iGaming clients — more than four times the 223,000 self-exclusion reports placed that year.”
If anything, US state regulators are even more sensitive to this issue than in the rest of the world.
2019 Gambling Industry Report free download
The report covers interesting areas such as GDPRcompliance in Europe, and player privacy as well as a number of other areas of interest to operators and regulators.
A free copy of the report is available on the iovation website.
Due to the unprecedented growth in the online gaming sphere, Ben Jones, Marketing Executive at ICS-digital LLP, examines how this sector has the potential to shape the future of entertainmentRECENT GROWTH OF ONLINE GAMBLING
In the past decade, the world of online gaming has expanded massively. The industry was worth $41.78bn by the end of 2016 and that’s set to hit the $80bn mark by the end of 2020. Just to put it in perspective, 11% of total internet traffic now comes from online casino players. The UK’s remote gambling sector has seen a 300% increase since 2014’s new legislation, reaching nearly $6.7bn by the end of last year.
But it’s not just the remote-betting industry that has seen an increase, non-remote betting, which includes bookies and casinos, has also seen a strong improvement in recent years. Bingo halls being the only non-remote gambling sector to not see some form of increase.
You would assume that the huge increase in remote gambling is due to more and more punters favouring the online methods of gambling and making the shift away from traditional methods. But this isn’t the case; we can see that both industries have seen a strong increase in numbers, showing that online gambling appeals to more than just those who have never gambled as a new, convenient and engaging way to place wagers. Existing non-remote gamblers are also embracing the digital age, whilst still enjoying the experience of visiting non-remote betting outlets.
SO EXACTLY WHY HAS ONLINE GAMING BECOME SO POPULAR?
When we look at the global gaming industry as a whole, it’s no surprise that the online gaming industry has seen such huge growth. By the end of 2017, the global gaming industry hit a record breaking $107bn, which is more than we spent on film and music for the year combined.
The main reason for gaming’s huge increase in popularity is down to huge technology advancements in the last decade. It seems pretty straightforward, but the better the technology gets, the better the gaming experience gets. One huge factor to online gaming’s increase in popularity is the monumental advancements in mobile technology. As the technology improves, connectivity and accessibility also improve. This allows more players to take part in remote gambling from anywhere in the world, providing they have signal.
Gaming has very successfully made the migration from console to mobile in recent years, with mobile gaming becoming the fastest growing platform in the industry, making up nearly 45% of the global gaming market, which sat at a cool $47.5bn by the end of 2017. This is a huge increase of 20% in the previous year. If you think that the average person spends up to 40 hours a week on their mobile device, it is much easier for developers and remote gambling brands to market and attract attention from new players through a mobile device. Online gambling used to be perceived as a desktop-only way of gambling. However, developers are now creating mobile-only applications as we switch to a more mobile-focused world of online gaming. Players being able to place wagers whenever and wherever has played a huge part in the popularity; pundits can put a last-minute wager on their favourite team or even get given new odds and bets halfway through a game.
As mobile gambling becomes more and more popular, the saturation of the online gambling market also helps improve the industry. Essentially, as more and more people join the industry, we see player pools increase and payout rates improve. Another huge contributing factor is that you are now able to place a wager on more or less anything. Whether you’re a football fan, a royal family enthusiast or just really into politics, you can place a wager on practically any outcome in popular culture. It is no longer just sports fans who are taking part in online gambling with the premise of winning money while still following a genuine personal interest. Non-remote gambling sectors simply can’t offer this level of variety or convenience.Another really important factor to consider is the increase in female online gamblers in recent years. Back in 2015, the female gambling population accounted for just shy of 50% of users in the UK. Many studies have shown that women not only prefer to gamble in private, but they also prefer a mobile device. So, they can play comfortably, confidently and feel they are less likely to be intimidated by male players. Some huge gambling brands have even created female orientated platforms such as 888Ladies and Pink Casino to help drive this continuously emerging market.
GAMBLING AS A FORM OF ENTERTAINMENT
Gambling, whether remote or non-remote has never been seen as such a genuine form of entertainment. This is heavily down to the strong emotional connection between the player and the game. You can’t interact with traditional forms of entertainment - for example, you can’t dictate the plot line of a movie or a piece of music.
Online Gambling Industry Statistics Uk
Online Gambling Industry Statistics 2019
Online Gambling Industry Statistics 2020
But, when it comes to online gambling, players can place wagers on genuine interests and actually create their own narrative. The journey and experience are solely based on the players’ decisions and talent, with them becoming emotionally invested in the outcome and this is magnified the minute a wager is placed.Online gambling also appeals to a wide range of demographics. About ten years ago, you would think that it was majority adult male sports fans that would place wagers. But, as mentioned earlier, not only can you place bets on practically anything, but remote gambling also appeals to a wide range of people. The older generations are becoming more and more comfortable with technology and are enjoying using mobile devices more and more, so the concept of online gambling is becoming less and less intimidating. This allows communities to build where people sometimes spend whole days with friends in online bingo halls and casinos. Gambling is also becoming more and more appealing to the younger generations. It’s an exciting premise being able to win money via your favourite sports team’s performance, whilst still being able to enjoy the match as a spectator. Younger audiences have always been known to be very understanding of new technologies, with most 11-year-olds now being able to navigate a modern smartphone very easily. So, it is no surprise more and more young adults are starting to get involved with online gaming.