Market trends

Geographical split

Geographically, Europe is the largest online gaming market, accounting for 52% of the total in 2017, it also represented over half of the Group’s pro forma NGR in the past year. H2GC forecasts that European gross gaming revenue will grow at 10% and out-pace the global average in 2018 to edge its global share to 53%.

The largely unregulated Asian region is the next largest, making up 27% of the global total, followed by North America (11%), Oceania (7%), Latin America (2%) and finally Africa (1%). 

Product verticals

As well as mobile, growth has been driven by continued product innovation across all areas of the market. An ever increasing number of betting opportunities are being offered to customers with in-play accounting for over half of wagers in some markets. Meanwhile, operators are developing products that present players with increased functionality, such as cash out.

In terms of product, betting and casino represent 76% of the global interactive market and these two product categories are also the two core product offerings of the Group. In 2017, betting and casino were forecast to grow at 12% globally, slightly above the industry average.

Mobile

A major driver of industry growth continues to be mobile. In 2017, mobile represented 36% of global interactive gaming revenues, an increase of 17% on the previous year. The statistics in Europe are even more impressive with mobile growth being an estimated 22% year on year. Around 50% of the Group’s Sports Labels gross gaming revenue is now via mobile, but this is still behind many of our peers and presents a significant opportunity for the Group.

Global growth

GVC Group operates in the global online/interactive gaming market, a market that was estimated to have been worth approximately €41bn in 2017. Over the past ten years the global interactive gaming market has risen by 9% CAGR. Total market growth in 2017 versus 2016 is forecast to be in line with the 9% ten-year CAGR.

Forecast

Looking ahead, the gaming market is expected to continue to grow ahead of GDP, with H2 Gaming Capital forecasting c6% CAGR over the next five years. The key driver will continue to be mobile with c48% of all online revenues expected to come from this channel in 2022. Regulation will undoubtedly influence whether these growth forecasts are met or exceeded.

Source: All data from H2GC, January 2018