Gambling statistics 2021: The definitive guide

Along with user-friendly apps, companies in the online gambling space are heavily investing in Artificial Intelligence (AI) to improve overall user-experience (U/X). AI allows for the personalization of apps to analyze gambling preferences and offer customized content accordingly.

AI also improves improved customer support, with chat-bots to quickly resolve queries and access to comprehensive playing stats. Behavior patterns that suggest fraudulent activity can also be identified using AI technology, which significantly reduces the risk for gambling firms.

Rapid developments in technology are also fueling growth in online gambling, with augmented and virtual reality software, providing users with a more immersive and realistic experience.

In addition to high-tech updates, gambling firms are employing their own tactics to gain more online users. Some provide free to play (F2P) products, often referred to as ‘freemium’, which generally have limitation on the user’s experience. Although no money is made from the F2P game directly, add-ons and upgrades that unlock extra features for the users attract healthy revenues. (27)

The question asked in a June 2021 YouGov survey was: Which, if any of the following are you likely to do in the next 30 days? (<a href="/gambling-statistics/#sources">44</a>)

Monthly Spend Across Gambling Categories

Coin Master is described as a casual slot game, with a user experience targeted at a younger demographic. It was the most downloaded casino game in the world in May 2021, generating almost 7.2 million downloads. However, the game has courted much controversy from parent groups because it involves spinning a wheel to win coins and introduces the adult theme of gambling to young children.

The consumer group Internet Safe Education, (ISE) is concerned that the main focus in Coin Master is on using a slot feature to earn coins. It urges parents to be aware of the many in app purchases the come with the game, with frequent prompts for money in order for the player to progress.
Despite these reservations, Coin Master seized the lion share of the download market in May 2021. (40.1)

The most popular casino gaming apps worldwide rank as follows:

As of the fourth quarter of 2020, the leading casino slot gaming app in the United States was Slotomania Vegas Casino Slots. The app accounted for 7.85% of iOS revenue in the slot casino games sub-segment. Slotomania has been around for a decade and was developed by an Israeli digital entertainment company, Playtika.

The slot game’s success is attributed to its monetization strategy that uses a blend of mechanisms that make the game fun, addictive and profitable. An example is a rare jackpot reward, which is when a rare but substantial jackpot is awarded on a random spin.

Slotomania has a progressive rare jackpot reward, which increases every time a player spins a specific slot machine without winning the jackpot. The rare jackpot reward is a highly effective mechanism to motivate players to keep spinning. This is the secret of Slotomania’s massive success, albeit in questionable in terms of encouraging problem gambling.
Slotomania is significantly more popular among online gamblers than any other casino slot game. In 2020 alone, revenues from the game brought $332mn to Playtika’s coffers. Since the game’s creation, Slotomania has been downloaded 87.6 million times, generating $1.64bn in revenue.

The top ten slot gaming apps in the US as of Q4 2020 by revenue share:

Most gamblers in the US bet up to US$10 per bet on online casino games (26%). 23% of gamblers bet on online casino games with no real money, known as Free to Play or F2P games. Although F2P games are generally designed to be played for nothing, there are various mechanisms within the game to create revenue streams by tempting players to stay locked-in to the action.

With social media ads being the most successful medium for promotion for gambling companies, it is not surprising that 55% of American online gamblers follow them on social media. In terms of popularity, the social media channels most used to follow gambling companies are ranked as follows:

(59)

Sports betting and fantasy sports are generally lumped together in the gambling industry sub-segment, mainly because sports gamblers tend to bet on both. However, the same gender gap appears in this gambling arena, with the smaller female demographic showing similar preference for wagering on both sports and fantasy sports (61).

According to research among gamblers from different black and white racial groups, African Americans were shown to be 96% more likely to exhibit problem and pathological gambling (PPG) than Caucasian Americans, (45%). This potentially explains why there is more hesitancy for gambling among black Americans, and could represent cultural attitudes towards gambling in general. Another factor could be the gap in earnings between the two ethnic groups (<a href="/gambling-statistics/#sources" >63</a>).

As of March 2021, the ethnic distribution of sports betting and fantasy app users as averaged across six companies* stood as follows (<a href="/gambling-statistics/#sources" >64</a>):

<p>While NFL betting is projected to be up across all wagering methods, betting with online sportsbooks is expected to see the largest increase over 2020 while illegal bookies are expected to see the slowest growth:</p>
<p>· 21.7 million American adults were expected to bet on the 2021 NFL season casually with friends, up 31% from 2020.<br />
· 19.5 million via online wagering, (legally and illegally), up 73% from 2020.<br />
· 14.6 million projected to participate in a paid fantasy contest or other type of pool competition, up 69% from 2020.<br />
· 10.5 million expected to use a physical casino sportsbook, up 58% from 2020.<br />
· 6.7 million to place a bet with a bookie, up 13% from 2020.</p>
<p>The research from the American Gambling Association also shows sports betting’s significant value to the league, with 37% of NFL fans planning to wager on this year’s NFL season, including nearly half (47%) of self-described avid NFL fans. Moreover, 44% of all Americans and 63% of NFL fans believe that in-venue sportsbooks will add entertainment value to attending sporting events in-person.</p>
<p>21% of fans from the Northeast of America are most interested in betting on the NFL, followed by the West (18%), Midwest (17%) and South (15%). The NFL has 32 teams in its league and has shown a strong intention to capitalize on the potential of sports betting to drive fan engagement (<a href="/gambling-statistics/#sources" >67</a>).</p>

According to the American Gambling Association (AGA), gaming revenue in the second quarter of 2021 grew by almost 500% compared to the same period last year, when COVID-19 impacted the industry.

This growth was mainly driven by strong gambler spending trends, with many people having increased disposable funds as a consequence of being unable to spend money on leisure and entertainment during 2020. Casinos were also able to increase capacity after reopening, which accommodated the surge of gamblers seen in the second quarter of 2021.

Other segments of the wider hospitality industry in the US such as live entertainment, dining, hotel bookings, meetings and conventions - including the international market – have not as yet fully rebounded in the second quarter, unlike the gambling sector (92).

It is worth noting that there is considerable scope for growth in gaming revenue, despite the record-breaking performance in the first half of 2021. This is because of the state reopening guidelines that limited capacity, offerings and amenities at the start of the second quarter of 2021.
When Q2 began, 15 of 25 states—home to three-quarters (345 of 463) of US commercial casinos—restricted capacity to no more than 50%, but all had fully reopened by the close of the quarter (93).

The COVID-19 shutdowns and regulations involved in reopening some months later have shown not to dampen the enthusiasm of in-person gamblers. The data supports the view that experience of playing in land-based casinos has even more appeal for gamblers this year than it did before the pandemic-related closures of 2020.

The recent revenue reports also suggest that land-based casinos are set to make a quick recovery from the COVID-19 crisis. In March of 2021, casinos in Maryland and Pennsylvania reported their best compound growth rate (CGR) ever, with Atlantic City and Nevada posting best gaming months since the beginning of the pandemic (94).

The increasing appetite for in-person gambling seen in 2021 is despite the almost meteoric rise of online gaming. Throughout 2020, online gambling supported the industry as a whole, as gamblers were forced out of casinos and onto their devices. The record-breaking revenues achieved in the first six months of 2021 give a strong indication that land-based casinos are far from dead.

According to the AGA, around 65% of American adults view the gambling industry as a positive economic contributor, providing high-quality jobs across a wide range of skillsets. 73% supported moves to legalize sports betting in their respective state (95.)

American adults also view gaming as a good community partner in terms of supporting the state economy. Around 7 in 10 American believe the industry behaves responsibly, with the majority (57%) stating that casinos give back in the communities where they operate.

The trust level among Americans in regard to the gambling industry has improved considerably in recent years, increasing by almost 40% since 2018. Furthermore, almost 80% of Americans who had gambled in the past year say they are aware of the resources provided by the industry to ensure responsible gaming.

Of this gambling majority, three-quarters identified specific measures such as deposit limits, casino employee training and time limits as being the most effective responsible gambling measures (96).

Since changes to Federal law in 2018, which lifted the lid on sports betting in the majority of US states, the commercial casino market’s landscape is starting to shift. Going forward, fortunes of each respective state are expected to improve considerably, as legal gambling becomes more widespread.

In the meantime, Las Vegas Strip holds the crown as the top performing casino market, with a considerable lead. Continuing changes to the overall market dynamic in the US in the coming years, could see Vegas relegated from the top spot as the competition heats up(<a href="/gambling-statistics/#sources">100</a>) .

The American hospitality industry was perhaps the most ravaged by the coronavirus pandemic, with 141,340 workers in the hotel casino segment alone becoming out of work in 2020. This represents a loss of one in three jobs in the segment, with just 294,790 employees remaining, 33% fewer than in 2019.

In 2019, employment levels in casino hotels were at their highest number in ten years, with 436,130 staff working in the segment.  Despite the significant reduction to the labor force a strong start to 2021 has resulted in the casino hotel sector being forecast to have 401,770 employees on the collective payroll, representing growth of around 27% on last year.

Native American tribal casinos are permitted to operate a full range of services without paying taxes to the government. There are certain stipulations that ensure casinos pay local states a share of the profits, although they are not based on taxation and depend on market performance.

However, state legislators recognize that tribal casinos contributed positively through the economy through indirect routes. In particular, tribal casinos improve employment in the areas they operate, while also providing opportunities for local small businesses through outsourced services such as catering for example.

Under IGRA legislation, Native American casinos are obliged to support local tribal economies by investing profits to improve infrastructure or support charitable organisations. The economic clout of US tribal operators is expressed in the numbers, which show that the segment generates more than 44% of the overall US gaming revenue. Additionally, seven out of the top ten states with the highest gaming revenue include tribal gaming.

The state that accommodates the most tribal-operated casinos is California. In the state of California, there are a total of 72 gaming facilities, 86.5% or 63 or which are owned by federally recognized tribes. It is hardly surprising that California contributes more than 25% to the overall tribal gaming revenue in the US year-on-year.

With a population of over 1.5 million, Las Vegas is the most densely populated cities in the state of Nevada. Vegas is well-known for its gambling, dining, shopping and nightlife which draws millions of domestic and international tourists each year. However, the market was hampered by growing cases of COVID-19 infections in 2020, and the repercussions they caused to tourism.

As a consequence of travel restrictions and closures imposed in response to COVID-19, Las Vegas revenues fell considerably during 2020. Hotel occupancy for the year stood at 42.1%, reflecting a decline of almost 47% on the previous year.

When most people think of the idyllic casino city, they think of Las Vegas. Times have changed, however, and the Chinese city of Macau is now at the summit of the gambling league. Massive investment in line with China’s economic rise and the opening of impressive new venues has led to incredible growth in the casino industry.

Last year, Macau’s casinos had a $38 billion turnover – over six times what Las Vegas took in. Interestingly, gambling revenue is significantly higher in Macau than Las Vegas on an individual level. In 2012, revenue per visitor was $1,354 in Macau while it was just $156 in Las Vegas. Why?
Unlike Las Vegas where the bulk of gambling revenue comes from throngs of visiting tourists, Macau manages to attract so called “high-rollers” – Communist Party officials and wealthy businessmen. Unlike the highly regulated casinos in the United States, those in China are quite lax – gamblers are not asked too many questions about the origin of their wealth.

Australia had the second highest gambling revenue per visitor in 2012 at $736. Singapore comes third, with $446, providing further proof of an impressive Far Eastern boom in the gambling industry.