Global Gambling Revenue expected to hit $525b by 2019

Global Gambling Revenue expected to hit $525b by 2019

Don’t expect gambling do die out any time soon. In fact, you can expect it to continue growing since an industry report cites that global gambling revenue should hit $525 billion by 2019.

The report, the tenth edition of Global Gambling Report, explains that global gambling yield (stake taken minus winnings paid out) grew by 3.2% to $453 billion this past year. This is a better improvement than 2013, when global gambling grew by 1.1%.

The steady growth of gaming is a huge reason why Global Gambling Report expects the industry to grow by over $70 million within the next five years. What’s interesting is that the organization also expects global gaming to decrease by 1% in 2015, due to the struggles of Macau – the world’s largest casino destination. This slight fall should quickly change, though, with 4.1% gambling growth in 2016.

Currently, Asia dominates the largest share of world casino gaming, taking in 33% of global gambling revenue. So when this region struggles (namely Macau), so does the entire gambling economy.

GBGC chief executive Warwick Bartlett explained what’s currently going on in Macau and the industry as a whole by telling CNBC the following:

“A combination of higher taxes and the sluggish global economy plus the decline in revenues in Macau will have a detrimental effect on the global gross gaming yield. This is only partly offset by higher Internet penetration and the use of smart devices (tablets and phones) to access Internet gambling websites. The industry really needs federal legislation in the US for casino gambling, but that is a long way off.”

While there may be some factors dragging down global gambling revenue, such as Macau and a lack of federal iGaming legislation in the U.S., signs are still encouraging overall. This is especially the case when one considers that the entire market has essentially doubled since 2001. And as Bartlett points out, this growth has come despite the Great Recession of 2008/’09 in America.

Assuming Macau can rebound from its current difficulties, which have arisen during a Chinese government crackdown on political corruption and money laundering, then gaming revenue should definitely come closer to meeting the predictions set forth by the Global Gaming Report. But for the immediate future, it looks like a slight fall is expected by the end of this year.