We have analyzed over a hundred online casino platforms to understand the current state of the iGaming industry and determine its long-term potential.
Specifically, we have looked at the player base, revenue, gaming licensing, gaming issues, and other stats that should help us get a comprehensive overview of the market.
Now it’s time to share what we’ve discovered.
The current state of the online gaming industry
Finding the exact number of online casino players is almost impossible.
There is no way to determine the market value on a global scale, but Grandview Research data scientists Expect the market to reach $ 127.3 billion by 2027 with a CAGR of 11.5%.
The forecast for massive growth comes from the growing popularity of online sports betting and the freemium business model of online casinos that attract players with no deposit bonuses. In addition, the massive adoption of smartphones and cheap internet data plans are driving the market towards exponential growth.
At the time of this writing, the American Gaming Association (AGA) estimates that there are over 2,800 active gaming websites that offer bingo, lottery, poker, and slot machines.
Here are some of the main results of our analysis:
- The global online gaming market reached $ 66.7 billion in 2020;
- Canada, the United States and Europe have the highest market share;
- Artificial intelligence and chatbots play an essential role in the development of the industry;
- The global online gaming market is expected to double in size by 2026;
- Recent studies show that 96% of online gamblers play at home.
More and more gambling experts are starting to realize that the transition to the digital environment is inevitable. Soon, online casinos will take control of the land market and replace the chic and posh casino with advanced virtual environments that replicate the same feeling from the comfort of your home.
But what are the main reasons why online gambling is the future of the casino industry?
Let’s find out.
Emerging trends in online casinos
Advances in technology allow gaming operators to extend their reach and improve their user experience.
The industry is now working to improve the gaming experience by blurring the lines between reality and virtual. Another concern of operators is that not all players are 100% sure when playing online.
Here are the most important gaming trends for 2021:
Crypto Payments Go Beyond Traditional Banking Methods
One of the main driving factors for online gambling is the implementation of cryptocurrency payments.
Ethereum, Bitcoin, and other coins are quickly becoming a popular payment method, which most players would prefer to use in place of e-wallets thanks to the benefits they offer, including:
- Instant transfers;
- Complete anonymity of transactions;
- Long-term growth potential;
- Dedicated crypto gambling offerings;
- Encryption technology protects your online identity.
This year, cryptocurrency has finally caught the attention of the masses.
This automatically translates into increased demand for crypto payments, especially for gambling purposes. Thanks to cryptography, your online transaction activity will not be disclosed to third parties, which will further protect you against scams and hackers. .
Having a gaming license is more important than ever
Pirate casinos are already a thing of the past.
Twenty years ago Internet gambling was still in its infancy. Therefore, operators could freely change the odds of games, lie about the bonuses they offer or even refuse to pay large sums.
Today, scammers can potentially lead to a permanent ban or even jail time. There are dozens of institutions responsible for regulating gaming platforms and issuing licenses, as well as testing institutions that check whether the operator has tampered with the gaming algorithm.
Here are the top four regulators you can trust when gaming online:
- Malta Gaming Authority – the MGA is an international license which is more expensive but offers more coverage, which means the casino can extend its reach to most middle and high income countries;
- Curacao Gaming License – The Curacao license is the most affordable license on the market, but it rarely adds to the reliability of the casino. This is because they have tainted their reputation with media scandals in the past. Still, specialists recommend the Curacao license for small startups that don’t want to pay gambling taxes and don’t have a lot of time to wait.
- UK Gambling Commission – UKGC is the world’s most restrictive casino regulator and has many requirements that you as an operator must meet. Yet the UK is a premium gaming market, so the investment will pay off quickly;
- Kahnawake Gaming Commission – The Kahnawake Tribe is the first region in Canada to issue gaming licenses. Their customer service is not very helpful, but the price is quite affordable, so small operators choose this license when they start everything. fair.
Whenever you join a new casino, check their footer to see if they have a legitimate gaming license. Also, see if they are monitored by a random number generator testing company like eCOGRA. This way, you will make sure that you are playing in a safe environment without having to worry about getting ripped off.
Virtual reality and augmented reality casino games are just around the corner
VR and AR technology is expected to become the next big thing in the gaming industry.
Even though the media has been blowing the technology over the past few years, it is finally coming to online casinos. Game providers like NetEnt or Microgaming have announced that they are already working on several VR and AR titles, including their base slot machine. Gonzo’s quest.
To top it off, there is a rumor that the gaming giants are discussing the creation of a working VR casino that will allow players to meet and play for real money in a land-based casino without leaving their homes.
Only time will tell if VR is a great tech, but from what we’ve seen so far, we expect it to impact our gaming behavior and change the way we play forever. to use online casinos.
Game restrictions will soon become obsolete
Sociologists expect globalization to reach a tipping point soon.
Technology is the main reason globalization is possible on such a large scale. Therefore, countries where gambling content is restricted will have no choice but to allow their citizens to place online bets in a regulated environment.
Off-shore cryptocurrency and gambling sites already allow players from restricted countries to join in the action and enjoy casino games in a licensed environment. Elon Musk’s Starlink will also contribute to the global internet movement, making online gambling available all over the world.
Gambling issues and risk statistics
Playing casino games is fun, but it’s important to mention that it can lead to compulsive behavior as well.
The risk involved in gambling goes beyond losing money. It can damage your relationship, your career, or even lead to serious mental illness.
Here are five key problem gambling statistics you need to consider:
- More than 64% of casino players increased their frequency of online play during the lockdown – The lockdown encouraged more players to join the online casino craze, leading to a massive increase in revenue for operators and exposing more people with addictive gambling behavior;
- Even though legalization has started in the United States, 16 states are unlikely to regulate gambling – 16 out of 50 states, including Washington, Texas, Utah, and Wyoming, have already announced their disapproval of gambling legalization or even the adoption of a bill on sports betting.
- People aged 18 to 24 have the highest risk of becoming problem gamblers – Psychologists have found a correlation between alcohol use in young adults and gambling addiction. It appears that this age group or more vulnerable to compulsive behavior, which makes them more likely to become addicted in the long term.
- Over 24% of online gamblers said they lose money and rarely get consistent wins at the casino. While most people know that gambling is not a reliable source of income, many players fail to understand that it can lead to a significant financial gap. Data from the Money and Mental Health Policy Institute shows that over 24% of all casino players have serious money problems because of gambling.
- More than 10 million Americans are addicted to gambling – While it is not legal everywhere, gambling in the United States is already harming the well-being of society. Casual gambling is the number one cause of long-term addiction, according to statistics from a recovery center.
The bottom line
We hope you enjoyed our in-depth online gambling case study.
The key to take away?
Online casinos are dominating the market, and they will continue to do so as more and more operators start to implement cryptocurrency payments and obtain an international license.
Nonetheless, it would be best if you were careful not to fall into the trap of gambling addiction, which continues to grow as casinos become more accessible to the masses.
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