It’s no secret that online gambling is one of the fastest-growing sectors on the planet. In 2019, the online gambling market was valued at $53.7 billion and is expected to reach $102.97 billion by the end of 2025, registering a CAGR of 11.5%. These numbers are without even taking into account the growth of land-based casinos.
In short, the iGaming industry is thriving and is a highly investible sector at the moment. Here are the factors that are driving this growth.
The incredible growth of online casinos
Online casinos are the heart of the iGaming sector. Since their introduction to the world in the late 1990s, the gambling industry has seen rapid and unrestrainable growth.
Historically, the growth of online casinos has been driven by the increased adoption of high-speed internet. As the internet became more accessible, the potential market for online gambling sites has grown immeasurably.
As the bandwidth of the internet has improved, so has the quality of services that online casino providers have to offer. Services like live casino, which brings the experience of a real-life casino to your computer or phone screen, would have not been possible just a few years ago.
The boom in mobile
With the increased mobile internet penetration, faster speed and a widespread drop in telephony prices, mobile phones have become more accessible to millions of players across the globe.
Similarly, gaming operators were fully aware of the potential of mobile devices, and most of them have invested heavily in research to provide players with exceptional playing experience. Meanwhile, the payment operators have also made their services available for mobile platforms, making it very easy for players to download an app, enter their financial details and play their favourite casino games on the move.
Taking all these things into consideration, it is pretty clear that mobile gaming is way ahead in the game, making an even larger contribution to the online gambling revenue in the years to come.
The rise in e-sports
Esports is a form of sport competition that often takes the form of organized and multiplayer game competitions, particularly between professional players, individuals or teams. Seeing the current trend, it seems that more betting companies will start accepting bets on esports, as they’re growing rapidly, attracting huge crowds and massive sponsorship deals.
Video games are already played by millions of people across the globe, and esports are now ripe for massive growth, which is driven by streaming platforms and penetration. This interest has, in turn, attracted the attention of lots of sports. In fact, many US companies are already beginning to get in on the action. But there’s still room left for growth, particularly in underserved European and Asian markets.
The two key factors driving all of the above trends are, of course, the increased penetration of mobile devices and the growth of an increasingly favourable international legislative environment. With the advancement in casino technology and the advent of 5G, it seems that the growth will likely continue in the future.