Gambling industry expert, Marco Felice Baranzelli, has predicted that online gambling will grow faster than land-based gambling each year until 2012. The consultant forecasts that revenue from online gambling will grow an average of 10.3 percent over the next few years - compared with a growth rate of 2.2 percent for land-based gambling.  This is all in spite of the world recession.

In 2007, worldwide revenue from gaming was around £216.3 billion - which was an increase of 6 percent on the 2006 figure of £203.5 billion.  Internet gambling has been estimated to account for just 4.8 percent of the 2007 revenue total.

Mr Baranzelli has attributed the fast-paced growth of online gambling due to wider availability of internet and broadband connections worldwide, as well as the convenience of gambling online - factors which mean the industry will continue to expand in the next 5 years.  

In his report, Mr Baranzelli predicts annual gambling revenue from online poker to grow by an average of 16 percent; with online casino revenue continuing to grow by 15 percent each year and revenue from online sports gambling to rise by an annual average of 11 percent.  All of these predictions are for the period from 2007 to 2012.

In 2007 online poker revenue was just short of £2 billion and this was a massive increase of 107 percent of the revenue that was generated in 2004.  The consultant forecasts that online poker revenue will grow faster than money taken in from online casinos and online sports betting.  He also predicts that Europe’s market share of online poker will rise nearly 10 percent from its 38.4 percent share in 2007 to 47.9 percent in 2012. The USA had a 55.6 percent market share in online poker and Mr Baranzelli feels this will decrease by around 13 percent at the end of 2012.

Online casino revenue will continue to grow although not as at such a fast rate as it is has down in the last few years.  Worldwide revenue was just £394.8 million in 2000 but increased rapidly to £2.1 billion.  Don’t forget this figure includes the USA, which has had severe restrictions on online gambling since the UIGEA was passed in 2006.  Online casino revenue decreased sharply because of this legislation, by more than 34 percent in 2007.  Excluding the USA, Mr Baranzelli reckons online casino will be just short of £2.5 billion in 2012.

Annual revenue from online sports betting grew by 19 percent from 2000 to over £3.1 billion in 2007.  Mr Baranzelli predicts sports betting to grow particularly well in Europe.  He forecasts it will grow by 23.4 percent in 2008.  He makes the prediction that online sports betting in Europe will grow to around £3.75 billion by 2012.

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