Market Insights Digital eServices Online Gambling

Online Casinos - Japan

Japan

Revenue in the Online Casinos market is projected to reach €1.87bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.85%, resulting in a projected market volume of €2.26bn by 2028.
In the Online Casinos market, the number of users is expected to amount to 5.1m users by 2028.
User penetration will be 4.0% in 2024 and is expected to hit 4.2% by 2028.
The average revenue per user (ARPU) is expected to amount to €371.80.
In global comparison, most revenue will be generated in the United States (€7,090.00m in 2024).
With a projected rate of 35.7%, the user penetration in the Online Casinos market is highest in Canada.

Key regions: Japan, South Korea, United States, India, Europe

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Analyst Opinion

The Online Casinos market in Japan has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Japan, there has been a shift in customer preferences towards online gambling and entertainment. The convenience and accessibility of online casinos have attracted a growing number of Japanese customers who are looking for a convenient way to enjoy their favorite casino games. Additionally, the younger generation in Japan has shown a greater interest in online gambling, as they are more tech-savvy and accustomed to digital experiences.

Trends in the market: One of the key trends in the online casino market in Japan is the increasing popularity of mobile gambling. With the widespread adoption of smartphones and improved mobile internet connectivity, Japanese customers are now able to access online casinos anytime and anywhere. This trend has been further accelerated by the development of mobile casino apps, which offer a seamless and immersive gambling experience on smartphones and tablets. Another trend in the market is the emergence of live dealer games. Live dealer games allow players to interact with real-life dealers and other players in real-time, creating a more immersive and social gambling experience. This trend has gained traction in Japan, as it combines the convenience of online gambling with the authenticity of traditional brick-and-mortar casinos.

Local special circumstances: Japan has a unique cultural and regulatory environment that has influenced the development of the online casino market. While gambling is generally prohibited in Japan, there are certain forms of gambling that are legal, such as horse racing, pachinko, and lottery. However, the popularity of these forms of gambling has been declining in recent years, leading to a growing demand for alternative forms of entertainment such as online casinos.

Underlying macroeconomic factors: The growing online casino market in Japan can also be attributed to underlying macroeconomic factors. Japan has a large population with high disposable income, which provides a fertile ground for the growth of the online gambling industry. Additionally, the Japanese government has been exploring the possibility of legalizing casino gambling in certain areas, which could further boost the growth of the online casino market. In conclusion, the online casinos market in Japan is experiencing significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility of online gambling, the popularity of mobile gambling and live dealer games, the decline of traditional forms of gambling, and the high disposable income of the Japanese population are all contributing to the growth of the online casino market in Japan.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Gambling Revenue (GGR) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies, and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, the urban population, the usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.