Germany: 50% Gambling Market Revenue Growth Projection by 2024
Revenue in Germany is expected to reach €3.3 billion by the end of 2024, a market projection from Goldmedia suggests. The company that specializes in the media, gaming, and entertainment industries and has more than 20 years of actively supporting national and foreign clients also sees a drop in 2020 revenues of up to 11.9%.
Double-Digit Average Annual Growth Prediction
The report focuses on the developments in the areas of lottery, sports betting, casinos, and gaming machines, considering revenue data of up to 2019. Goldmedia predicts gaming revenues in Germany to grow by 50% in 4 years, a bold prediction considering the level of material impact on gaming from the still ongoing health concerns, as well as the ambiguity among different German states regarding online gambling.
Besides market projections, the consultancy firm conveyed a survey among 400 active online gamblers in the country, drawing respective conclusions from their answers. 62% of respondents in the survey stated their preference for a locally-licensed gambling operator if they have the opportunity to choose, which unfortunately they do not have at the moment. According to the currently active Third State Treaty on Gambling, online forms of gambling are illegal outside of Schleswig-Holstein.
Easy Smartphone Access for Offshore Gaming
More worrying for regulators and companies willing to operate legally is that 38% of survey respondents outlined they would continue gambling through offshore sites that are unregulated in Germany but regulated in other jurisdictions. 65% of all respondents play slot games through their smartphones which turned out to be the most preferred gambling platform.
Besides preference for gambling operators, the survey established current gambling patterns, with 12% of its participants playing online slots daily, and another 32% accustomed to a weekly schedule. The majority of online players, 52%, spend less than €50 per month on online gambling, with 81% in agreement with the implementation of deposit limits, the survey outlined.
For gambling operators, the survey showed that most of customer acquisitions happened through the online advertising channel, 39%, while another 28% were based on recommendations from friends. Social media, surprisingly, accounted for only 9% of new customers acquired by operators.
In 2019, turnover across all gambling products and verticals posted a 5.5% growth, €850 million, to reach a total of €16.3 billion, with the most profitable segment being gaming machines which accounted for 42% of total gaming revenue.
In terms of growth rates, however, online casino and sports betting were the two verticals that contributed the most compared to the year before. Online casino posted 10.6% increase in 2019 revenue, while sports betting generated an impressive 18.6% growth rate compared to 2018.
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