For decades the most popular form of gambling around the world was the lottery. These games which encompass anything from pick-3 and pick-4 drawings to scratch cards and mega jackpots are usually run by state governments as an alternative to raising revenue via direct taxation. However, thanks largely to the growth of gaming resorts in Macau and Singapore casino gambling is now expected to account for a greater share of worldwide gaming revenue by 2014.
In 2011 a study was carried out by the Global Betting and Gaming Consultants' Global Gambling Report which found that global gaming revenues totaled $420 billion. Lotteries accounted for approximately 28% of those revenues followed by casinos with 25%. Online gambling checked in at 8.4% which while much lower than lotteries and traditional casinos – is the fastest growing part of the gaming industry.
By the time 2014 rolls around the industry analysts predict half a trillion dollars in gambling revenues by 2014 with casinos becoming the dominant force. While online gambling is certainly more accessible especially to the European audience – the trouble in the Euro zone economy will create an adverse business environment for the online casino audience to grow. Asia, in comparison, has a much larger population and a vibrant gambling culture. Macau and Singapore both have enormous casino complexes that are seemingly always full.
While lotteries can be found in almost every European country, they are not as common or popular at all in Asia. In china the only lottery around is in Hong Kong which is very small geographically and is administered separately from mainland China. There is a lottery in Hong Kong but it never quite took off like it did in Europe. Gamblers and visitors to Hong Kong have long preferred Horse Racing and casino gaming like Craps to the lottery because the take is much lower on these forms of gambling allowing players to play for higher stakes and for longer periods of time.
As for the online casino operators their best chance to become the big force in the race for gambling revenues is to break into the Asian market. This, however, will require years of lobbying and regulatory reform as online gambling is not allowed in many Asian countries.
