According to a recent study, the global online gambling market was valued at USD 63.53 billion in 2022, but this figure pales in comparison to the anticipated market size over the next five years.
The study suggests that the online gambling market is projected to reach $103.74 billion by 2028, with a compound annual growth rate of 11.34% over the next five years. So, what are the key factors driving this substantial growth?
#1: Social Gaming
We have witnessed a growing trend where every online casino is incorporating social elements into their platforms to keep users engaged for longer and provide a more enjoyable experience. This trend is expected to gain even more momentum in the industry as it has already proven to be a game-changer. It’s transforming the traditionally solitary activity of online gaming into a more communal experience, akin to what we see on gaming consoles like PlayStations.
These social gaming features, including enhanced chat rooms, live leaderboards, and new multiplayer options, have not only boosted user engagement but have also opened up new revenue streams for online casinos.
#2: Friendly Regulators
As we look forward to 2024, the online casino and iGaming industry are finally receiving more favorable treatment from global regulators. In the past, iGaming companies often had to navigate complex regulatory hurdles, but it appears that this era is drawing to a close.
This development is significant because regulatory changes play a crucial role in influencing the growth of gaming platforms. They can either open up new markets or restrict access, directly impacting revenue.
It’s not just a victory for the online gaming community; it’s also a wise decision by governments. Online gaming can attract tax revenue and encourage new businesses to establish themselves in certain regions. Having big brands such as Betway opening up in different areas shows that governments are embracing gaming and are aware of the tax revenue boosts that come with it.
A notable example of recent “friendly regulation” is the Markets in Crypto Assets Regulation (MiCA), which came into effect in June of this year. It provides a comprehensive framework for crypto-assets, including those used in online casinos. MiCA not only offers a legal structure for these platforms but also expands opportunities for market growth and revenue generation.
#3: The Continued Rise of Mobile Gaming
It’s safe to say that people are now as comfortable conducting important activities on their mobile phones as they are on their desktop computers, and this includes iGaming. In 2020, mobile phones became the most popular way to access online casinos, with 50% of global gamblers reporting playing on mobile.
While this data is from 2020, it provides insight into the industry’s trajectory, and considering current trends, it’s reasonable to expect this percentage to increase in the coming years. Mobile gaming is also an effective way to attract first-time users, as the younger generation prefers instant accessibility.
Mobile gaming is crucial because it allows users to access sportsbooks like Betway and play immediately, whether they’re at a bar or a friend’s place.
In a nutshell…
While iGaming has already witnessed substantial growth in recent years, it’s now entering a golden age. Thanks to new technology, support from regulators, and innovative ideas, online casinos are thriving like never before, and this trend is set to continue into 2024.
