The latest insights
from the gambling
industry

Online likely to reach 20% share of all gambling activity in 2020

Key stats:

• Global gambling revenues down 26% in 2020
• Retail gambling down 39%
• Online betting and gaming down 7%
• Online to reach nearly 20% of all gambling in 2020
• US iGaming to reach $1.4bn GGR

Press release – for immediate release

23 November 2020

Manchester, United Kingdom

In a year of huge upheavals for both land-based and online verticals, H2 Gambling Capital shows how the US sports betting market and mobile are the clearest signposts for a return to growth in 2021 and beyond.

Speaking at the Sports Betting USA Conference, David Henwood, Director of H2 Gambling Capital, explained that while the global sector has experienced a 26% drop in revenues so far this year, online gambling has become one of the strongest performing verticals worldwide.

H2 figures show that global revenues have dropped 39% for retail gambling outlets but only 7% for online, compared with H2 forecasts 12 months ago.

The sector has gone back in value to 2010 levels in terms of gross gambling revenues, but, Henwood said, “the good news is we believe it will bounce back, primarily because of the phenomenal rise in the percentage share of online (as shown by the red line graph below), which in the space of a few months has jumped from 13% of all gambling revenues pre-COVID to 19% - possibly reaching 20% by the end of the year.”

When placed in a broader context, the figures put land-based gambling in the same space as some of the worst COVID-affected industries like automotive and travel, while online finds itself in the same category as high performing sectors such as media, telecommunications, big tech and logistics groups.

US growth

The US sports betting market has been a key growth driver and the prevalence of mobile has made a huge difference to operators stateside. The shift to mobile is the biggest step change to pre- and post-virus settings, with three-quarters of all US sports bets now placed remotely.

Of the 19 states that have regulated the vertical, only four haven’t allowed mobile gambling.

The rearranged sports calendar and the backing up of the 2019/20 NBA season in particular into the start of the 2020/21 NFL season have led to a bumper August and September.

Operators generated a record c$2.9bn in handle in September, an annual rise of 75% on September 2019 and the highest total since PASPA was repealed in 2018. It should be noted however that gross revenues were down 3%, due to an average hold of 5.8% (vs. 10% in 2019) and heavy marketing and promotional costs.

H2 forecasts US sports betting operators will reach $1.4bn-$1.5bn in GGR by the end of 2020 and almost double it again by the end of 2021. H2 expects US sports betting GGR to reach just under $10bn by the end of the decade.

“Going forward, we can see that resilience playing out and we are now looking at the US as the world’s fastest growing sports betting market,” Henwood added.

With a current total addressable market of around 20% of the US population and relatively slow take-up of live in-play betting, to which can be added a resilient and growing offshore market that H2 values at $17bn in 2020, there is still much more room to grow for the US sports betting market.

For more information on the data and insights on the US market please email: contact@h2gc.com

For All Enquiries, Please Contact:

Simon Holliday, H2 Subscription Lead – simon.holliday@h2gc.com

David Henwood, H2 Premium Lead – david.henwood@h2gc.com / +44 07958 712764

About H2 Gambling Capital

H2 Gambling Capital is the leading supplier / aggregator of data for the global gambling sector. Its subscribers include many of the leading sector operators, suppliers and regulators across the gambling industry as well as in the banking and investment sector. H2 has also worked with 100s of clients from every continent on a bespoke basis under its H2 Premium service, and in North America, with Princeton Public Affairs Group.