The iGaming industry has been around for more than a decade. Thanks to the internet and mobile technology it’s one of the fastest-growing sectors worldwide. According to a 2020 report published by Statista, this industry has a global market size of $59 billion, which is anticipated to grow to $92.9 billion by 2023. The iGaming industry earns revenue not only for punters and online casino operators, but also governments.
Leading Countries by Gaming Revenue (2020)
Even so, some countries collect more revenue from online gaming than others. This article will cover the top three countries that lead in online gambling revenue. We will cover how much they earn and then try to analyze what’s sets them apart from other countries.
1. China ($44.263 billion)
China is the leader when it comes to gaming revenue. This country earned a gaming revenue amounting to $44.263 billion in 2020. The market size for online gaming in this country is estimated to be $58 billion. The total revenue earned from online gaming in 2019 was 288.48 billion yuan, which is approximately $45 billion.
These large numbers can be attributed to China’s enormous population of 1.4 billion people. China also has the highest number of internet users compared to the United States, India, and the rest of the world. A 2020 report by Statista estimates that there were over 654 million mobile gamers in this country.
One interesting fact about gambling in China is that it’s legal in only one region, Macau. This region is home to some of the best brick-and-mortar casinos, such as the Venetian and Sands Macao. However, online gambling is not technically legal. The government of China doesn’t do much to stop online gambling in Macau. Tencent and NetEase are the companies behind China’s enormous gaming market size.
2.United States ($42.107 billion)
The United States ranks second place, with gaming revenue of $42.107 billion in 2020. Online gaming is considered an intrinsic segment of the American culture. Statista reports that there are approximately 175 million online gamers in the U.S.
The states that contribute the most to the iGaming industry include New Jersey, Michigan, Delaware, Pennsylvania, and West Virginia. These five states contribute a total iGaming revenue of $304.5 million, with New Jersey the highest. According to Statista, the online gaming revenue is expected to reach $4.845 billion in 2021 and $6.345 billion by 2025.
3.Japan ($20.615 billion)
Online gaming, particularly gambling, has been gradually growing in popularity in Japan. This country earned a gaming revenue of $20.615 billion in 2020, which is roughly half that of China and the United States. The most popular online games in Japan include Pokemon Go, Monster Strike, and Puzzle and Dragons.
Online gambling is considered legal in Japan, but it could be because there isn’t any online gambling authority that prohibits punters from wagering online. The laws aren’t exactly clear, but most Japanese players access online gaming through foreign websites. A report by Statista shows that online gaming revenue in Japan is expected to reach $3.904 billion in 2021 and $5.217 billion by 2025. The user number is also projected to grow to 30.4 million by 2025.
Surprisingly, a majority of the gaming revenue comes from North America and the Asia Pacific. China is the leader in both total gaming and online gaming revenue. The United States comes second and lastly Japan.
These three countries have a total gambling market size of more than 50%. The Asia Pacific accounts for 38%, while North America boasts a 29% market share. If you’d like to learn more about gaming revenue, here’s another article that provides a comprehensive overview of gambling profits by country.No tags for this post.