The UAE and India are bright prospects for the region, however, Asia-Pacific did not provide better market potential for iGaming, when compared to regions such as Latin America and North America, a report by SOFTSWISS on iGaming trends for 2024 argues.
‘Drawing from the data, it’s discernible that Latin America holds a slight edge as the region, with the most lucrative prospects for iGaming in 2024, closely followed by North America and Europe,’ the company indicated.
‘Asia-Pacific also presents a substantial opportunity, while Africa and the Middle East trail with a lesser, yet not insignificant, market share.’
UAE and India are potential bright spots
The iGaming company also provided localized analysis of certain international markets, including the UAE and India.
For the company, the establishment by the United Arab Emirates of a General Commercial Gaming Regulatory Authority (GCGRA), signalled a ‘groundbreaking move towards regulated gaming within the region’.
‘These developments serve as a stark reminder: mastery of agile governance and strategic adaptability isn’t just beneficial – it’s the cornerstone of thriving in the face of the industry’s swift regulatory evolution, safeguarding market share, and driving robust financial performance,’ the report added.
When it comes to the UAE, the report estimated that this region’s gambling market is expected to grow at a CAGR of 4.2 percent for 2020-2026, reaching $1.3 billion by 2026 due to the rising number of online gaming platforms and increasing demand for mobile gaming applications.
‘The growth is also attributed to an increase in affluent tourists visiting the country. The establishment of integrated resorts and the potential regularization of commercial gaming presents significant market expansion opportunities,’ the report points out.
However, the conservative cultural and legal framework was a factor SOFTSWISS considered could pose challenges to the growth and acceptance of the gambling industry in the UAE.
As for India, the company projected that its gaming market size is expected to grow from $3.02 billion in 2023 to $6.26 billion by 2028, at a CAGR of 15.68 percent.
In 2024 a 28 percent goods and service tax on online gaming, casinos (and horse racing in Bihar) will be enforced, with Sportswiss noting that the rising middle class in the country, coupled with the growing number of smartphone users, presents a significant opportunity for market expansion.
Still, it underlined some challenges, namely, that that online gaming companies are worried the higher tax rate could drive players to unregulated platforms, while cybersecurity threats such as hijacking of user accounts could also be a hurdle for the market.
