Over the past five years, starting with the coronavirus pandemic, the share of online gambling in the global gambling market has been growing steadily. And this growth not only continued after the pandemic ended, but also accelerated significantly. In some countries, the share of online gambling users has reached 30%. This segment is also growing rapidly in Ukraine, which helps to ensure not only the development of the industry but also the increase in state budget revenues.
Globally, the online segment is steadily growing in all areas of the entertainment industry, and gambling is no exception. For example, in countries such as Norway, South Africa, and New Zealand, online gambling has become popular among a significant part of Internet users. In these countries, the number of visitors to gambling websites is 30.2%, 30%, and 26.2% of the total number of Internet users, respectively. The list of countries with the highest online gambling activity also includes Greece (22.5%), Hungary (20.4%), Brazil (19.5%), Nigeria (19.0%), the United Kingdom (17.9%), Austria (17.6%), and Australia (17.2%).
Such a significant increase in interest in online gambling has a direct impact on budget revenues. The increase in the number of online gambling users contributes to the growth of tax revenues to local and state budgets. For example, in Ukraine, in 2024, the budget received from the gambling business UAH 17 billion in taxes , which is UAH 6.6 billion more compared to 2023 (UAH 10.4 billion). The bulk of these revenues came from the online gambling segment.
The growth of the online gambling market is driven by its much greater adaptability. Being primarily an intelligent product, online gambling is much less tied to physical assets and infrastructure, and therefore much more easily able to adapt to different regulatory environments in different jurisdictions. However, growth is occurring where the conditions are most favourable - in North America, Europe, Asia and the Middle East. The average growth rate of transaction volume in these markets is forecast to be 10.8% over the next five years. The biggest drivers of online growth are sports betting, lotteries, and casinos.
The iGaming segment, which is part of the global gambling market, is also experiencing rapid growth. The sector is expected to grow at an average annual rate of 10.7% over the next five years. The share of the online segment in the overall gambling market is expected to exceed 35% by 2029. One of the main reasons for this growth is again the improvement of regulatory legislation in more developed markets, which prioritises the rights of players, including their right to payout.
This trend points to the need for continuous improvement of the business environment in each jurisdiction, and Ukraine is no exception. Unresolved tax issues, a slow fight against illegal gambling, and the constant introduction of new restrictions all hinder the development of the market and scare away potential investors. This leads to the lack of positive effects that any rapidly growing industry has, such as the creation of new jobs, increased contributions to the state budget, creation of synergies with other businesses, etc.
That is why it is important for Ukraine to create favourable conditions for the development of the legal gambling segment as soon as possible, as well as to improve the tax system, focusing on the online segment. With the right regulatory framework and transparent tax policy, international investors will be ready to invest in the Ukrainian market, especially in online projects. Given the difficult circumstances of the war, investment in this sector and its development is extremely important, as it continues to grow despite all the challenges. It remains a source of revenue for the state budget and job creation, which will contribute to the stability of the country's economy in difficult times.
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