The online gambling scene is ever changing. Keeping up with trend after trend can be difficult for an entity such as an online casino.
Cryptocurrency entering the industry could be quite the game changer. A safer and coherent payment system, the ability to spend without being attached to a bank, and the accessibility to play anywhere will be major driving forces for market growth.
Predictions for online casino market growth are looking promising with the introduction of new technology.
A number of countries are warming up to the idea of online gambling mainly because it will increase revenue and drive growth by adding employment.
A heavy focus is being placed on cryptocurrency as this is likely to be the key trend that will help the crypto market in the coming years.
Overview
Blockchain, as defined by knowledge broker Travis Sztainert, is “a method for tracking transactions using a public, globally distributed ledger.” It is commonly used as virtual currency, also known as cryptocurrency.
Based on the article featured on The Merkle, cryptocurrency blockchain technology has increased in value over the past several years, leading cryptocurrency owners to believe that they will be able to sell it for a high price.
Companies like Basis, Basecoin and Seignorage Shares began creating their versions of a cryptocurrency without so much fluctuation and more stable values.
A Wall Street Strategist named Tom Lee predicted that by 2018, the value of the cryptocurrency would reach $25,000.
Since that prediction, the market rapidly spiraled downwards from a start of $19, 000 and fell to $13,500 by the end. In a volatile market, you can be sure there were heads spinning and huge losses.
The market dropped a whole 30 percent within a week.
What Does This Mean for Online Gambling
The online gambling industry is owned by three major players: Playtech, Cryptologic, and Microgaming. This industry makes up for half of all bitcoin transactions!
MordorIntelligence.com says that “The key players in the online gambling market are providing similar or almost identical services and products, leading to a fierce competition with a heavy focus on pricing and marketing activities.”
The growth forecast shows that between 2016 and 2024, the online gambling market will rise to $87 billion dollars. Currently, the largest online gambling market is Europe but it’s gaining more popularity and legality in North America.
Sports betting is the gambling activity providing the most support to this market growth. In the United States, legalization of sports betting in 2018 by the Supreme Court has contributed to its growth.
The only hindrance to its growth will be strict rules and regulations placed on online casinos in the U.S.
Key Trends
Increasing Technology Role
If one thing is sure: the rising ability to do practically anything on a technological device will have a profound effect on online gambling. Our technology provides us the opportunity to have shared experiences as if we were really in a casino.
Online casino games are typically played on desktops or laptops but now the games are being offered on mobile devices!
According to Mike Tan at Online Casino Gems, technology is profoundly redefining the gaming experience. “What we’ve seen over the past five years, is a huge spike in interest for online casino games across all demographics. This is in part attributed to the convenience of being able to access and play games on the go, an overall acceptance of payment methods (five years ago you couldn’t find a single bank allowing online deposits, now you do!) and the legalization of online gambling following the 2018 Supreme Court Decision in the US.”
Let’s look at each of the trends highlighted by Mike in more details.
Mobile Phones
Market growth will increase as online gambling becomes optimized for mobile phones. The availability and accompanying accessibility will undoubtedly increase interest for potential players.
Online Payments
Safer and more trustworthy payment methods are being implemented in the legal online gambling space. The more privacy and less financial risk there is, the stronger the market can become. Online payments are faster and offer players more freedom.
Online casino companies will be working towards faster loading and smoother online payments with less wait time to motivate more players.
At the top of the online casino industry: PayPal Casino, Visa Casino, Skrill Casino, and NETeller are currently used payment methods.
Cryptocurrency Payments
Faster payments can also be accredited to cryptocurrency users because using this currency can be the fastest way to pay.
The benefit to paying with cryptocurrency is that it is non-reversible, meaning that there is less risk for fraud or non-payment.
The list of pros outweighs the cons of this payment form which will likely contribute to an increase in market growth.
The beauty of blockchain is that there is no way to cheat or meddle with payments.
The reason for the emphasis on a growing cryptocurrency market is due to the lack of necessity for a bank connection. Anyone with an internet connection can send or receive cryptocurrency.
This opens access to people anywhere in the world.
Higher Income
Side gigs are increasingly common among millenials and those in the middle-class. It is likely this trend is only going to continue to grow. The more money made, the better the chances are that more people will be willing to gamble.
Sports Betting
Sports betting is a high profile activity that started hundreds of years ago. Today, it is still at the top of the list for the most popular type of gambling.
More U.S. states are choosing to legalize and regulate online gambling. Sports betting will likely help with market growth. Since sports won’t go out of style, neither will betting.
On a bright note, the South Asia Pacific looks like it will be catching up to other continents; their sports betting is growing.
Specifically Hong Kong and Macau will be the driving forces of market growth because they are already major players in increasing revenue streams.
Legalization
Strict regulations for online gambling are in place for most countries.
More countries want to legalize online gambling because it could expand their markets. It could also increase employment and tourism.
Countries like India are getting into the game, too. “Sikkim became the first Indian state to legalize internet gambling,” says Globe Newswire.
“The Sikkim Regulation of Gambling Act was established in 2005 to authorize the government to allow individual gambling houses. There are three games in Sikkim Gambling Law: Sports Betting, Casino, and Lottery.”
Other countries are expected to follow this act and allow their citizens to participate in online gambling activity.