A recent credit rating agency Morningstar DBRS report predicts substantial growth for the gambling and betting industry in the coming years, driven by the rising penetration of online gaming platforms. Despite differing market dynamics in the US and Europe, the global online gaming market, including sports betting, lotteries, and casino games, is expected to grow at an annual rate of 11% from 2024 to 2028.
US companies face a challenging regulatory environment but are poised for significant growth due to a large customer base and ongoing legalisation efforts. Conversely, European firms benefit from a more established regulatory framework and stable market dynamics, contributing to favourable credit profiles.
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The report highlights that the shift towards online gaming, accelerated by the COVID-19 pandemic, has increased user numbers and overall profits. With major events like Euro 2024 and the Paris Olympics on the horizon, betting activity is expected to surge, further boosting revenues for leading gambling companies.
However, DBRS warns that the long-term success of companies in this sector will depend on their ability to navigate market-specific risks and regulatory challenges, as well as their capacity for geographical diversification and brand strength. Despite the promising growth prospects, the US market’s instability presents a significant challenge for investors, while Europe’s mature market offers a more secure environment for business operations.
