The International Betting Integrity Association (IBIA) has released a study that evaluates global gaming and the demand for regulated sports betting products.

The study, prepared by H2 Gambling Capital, is comprised of data from the gaming consultancy, sports betting operators, and the IBIA. It is backed by a group of sponsors, which include the Canadian Gaming Association, the Brazilian Institute of Responsible Gaming, the Netherlands Online Gambling Association, and Responsible Wagering Australia.

Using data from 12 jurisdictions, the study evaluates the impact of regulatory frameworks on market success, along with in-play betting, and monitoring. The study also considers how soccer, tennis, and other sports shape the global gaming industry.

Ontario, Spain, Brazil, Portugal, Australia and Sweden were included to give the study a comprehensive view with multiple regions represented. The U.S. gaming market was not included in the study due to varying state regulatory frameworks.

Global gaming continues to grow

The regulated global sports betting industry is projected to report approximately $94 billion in gross gambling revenue in 2024 with roughly $61 billion generated from online wagers.

In 2028, gross gambling revenue from the global sports betting industry is estimated to reach $132 billion with approximately $93 billion wagered on online platforms.

What dictates market success

The study, using Ontario, has determined that markets with successful gaming industries have open competition. The province’s open market allows the jurisdiction to have proper oversight of regulated wagering while also keeping residents from using offshore services.

In 2022, Ontario emerged as an open gaming market after previously using a monopoly model that only authorized a government-owned operator. As a result, the province is projected to reach a 92% onshore sports betting channelisation rate in 2024. In comparison, the rest of Canada’s provinces are expected to combine for an 11% rate.

The abundance of offshore users in provinces outside of Ontario could add up to approximately $2 billion in taxable gross gambling revenue losses between 2024 and 2028.

In-play betting keeps consumers engaged

The IBIA reports that 47% of all bets placed in 2024 will be in-play wagers, generating roughly $28.4 billion in revenue. The exclusion of in-play wagering in markets like Australia has led to lukewarm channeling rates for onshore operators. In 2022, the channelisation rate was 78%, and in four years that figure could reach 79% under the current regulatory framework.

The same evidence was found in Germany, which also limits in-play betting. The European country is estimated to have a 60% onshore channelisation rate in 2024. Great Britain, which was also used in the study, has in-play betting with a 97% onshore channelisation.

The study projects that Australia could add $1 billion in incremental tax revenue over a five-year period with in-play betting, while Germany could add more than $400 million.

Soccer dominates global wagering

The world’s most popular sport is integral to the global gaming industry’s success, according to the IBIA’s study. The game is forecasted to generate around $53 billion in gross gambling revenue in 2024 with Europe and Asia making up 85% of all retail and online bets.

The study has found that markets that restrict betting on soccer are missing out on considerable profits. Portugal and Germany, which have restrictions on soccer betting products, could combine for a $750 million loss in taxable revenues during 2024-2028.

Tennis has also emerged as a profitable sport for operators and their markets. The availability of competitions could bring in $6 billion in gross gambling revenue by 2028. It is expected to grow in North America with $1 billion in revenue projected that same year.

The global gaming industry will continue to shift with the emergence of new betting markets but the IBIA’s study has determined that both regulated and offshore wagering impact economies across the world.