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Evolution Gaming: online gambling in the fast lane

Evolution Gaming: online gambling in the fast lane

The online gambling market has been growing at a rapid pace for years and has experienced a new boom in many countries, especially since the beginning of the Corona crisis. According to Swedish gambling company Evolution Gaming, this trend will not only continue but accelerate.

Croupier in online casinos

As Reuters news agency reported yesterday, the company predicts that online gambling operators could have larger market shares than their land-based predecessors in a few years.

In as little as 15 years, the market share of brick-and-mortar casinos worldwide could shrink to "maybe 50%, 40% or 30%," explains Evolution CEO Martin Carlesund. Regarding the online market, he says:

"The market itself will double and double again. It's difficult to even get an idea of the total potential."

Evolution Gaming itself has seen unprecedented growth within the last year, he says. The company's share price has increased by 170%, he said, and its market value has grown to SEK 314 billion (just under 31 billion euros).

At the time of its IPO in 2015, this had been just SEK 3 billion (295 million euros). In terms of its market value, Evolution is now among the 10 largest groups in Sweden. Other big projects, in the list of Indian casinos, are now showing similar growth and are competitive due to the constant expansion of their user base and the introduction of new features for them.

Evolution Gaming was founded in 2006 in Sweden as an online platform for live casino games. The company subsequently opened live studios in Latvia, Malta, Belgium, and Romania, as well as office locations in other EU countries such as Estonia and the Netherlands. In 2018, the group expanded outside Europe for the first time to the US and Canada. In 2020, Evolution bought out its competitors NetEnt Casino and Red Tiger. Today, the group supplies around 500 online casinos with its various live dealer games.

There is also no end in sight for Evolution Gaming in terms of its own growth. The group plans to establish itself in all regulated markets in the coming years. Whether Evolution will also receive licenses in Germany is likely to depend on whether the individual countries will clear the way for live casino games in the same way as for other online gambling.

Casinos in India list

Forecast from H2 Gambling Capital more cautious

Evolution Gaming is not alone in its forecast. Industry data analyst H2 Gambling Capital (H2GC) has also adjusted its market forecast to reflect the recent rapid development of the online sector.

According to a recently published forecast by the company, the global online gambling market would grow by 90% to €231 billion over the next 15 years. This would increase the current market share from 16% to 22%. However, the growth alone would not be enough to wrest further market share from the land-based sector. Senior consultant Ed Birkin explains:

"Based on the current growth rate and the relative market size, one would have to assume that the noticeable increase in growth of the online sector would be accompanied by a noticeable decrease in growth of the land-based sector in order to achieve that."

However, he does not want to completely rule out the possibility that the market shares could settle at 50/50 sooner or later. Structural shifts could possibly make the current growth rates irrelevant for the future, Birkin said.

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