Forecast Analyst Says: US Regulated Online Gambling Market Will Exceed $4 Billion By 2020
Technavio, a leading global technology research and advisory company has released a study that forecasts the online gambling industry in the US will grow 51% during the next four years.
The study sheds light on the state of the online gambling market at present, and growth prospects in the United States for 2016-2020.
According to the report, the market size was calculated using the revenue generated from online gambling in Nevada, New Jersey, and Delaware, and U.S. online lottery segments. The report also discusses market growth drivers, such as: easing of government regulations, scope for increased contribution to national economy and a wider reach of online gambling. The study also discusses the challenges faced by online gambling operators and trends emerging in the market.
Despite being portrayed as a global gambling hub, due to popular destinations such as Las Vegas and Atlantic City, the US was actually ranked 8th (in 2015) in the global online gambling market, positioning itself behind China, the United Kingdom, Australia, France, Italy, Germany, and Spain.
At the time of writing, Delaware, Nevada, and New Jersey are the only states that have approved regulated online gaming. However, with the Federal government easing laws, and clear tax benefits designed to contribute towards societal welfare, development of hospitals, and educational institutions, and even job opportunities; five states in the US are likely to legalize online gambling by 2020, including California, Pennsylvania and New York.
Ujjwal Doshi, a lead analyst at Technavio said: “The easing of regulations on online 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.”
Doshi added -- “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. 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.”