Online gambling has grown at a significant rate in recent years, with the average compound annual growth rate said to be at 10.8%. As new technologies continuously emerge, the digital transformation is helping many industries to increase their presence across the globe, however online gambling is one of those industries benefiting the most.
Synonymous with this growth is the increasingly positive attitude towards gambling, an activity that has been either frowned upon or made illegal in many countries for the past few decades. Now, countries like the US and Canada are leading the way in dropping some of the restrictions like their counterparts in the UK, opening up more doors than ever before for the gambling industry.
Below, we’ll take a look at the different types of gambling and which areas are experiencing the most growth.
Placing a sport bet used to involve visiting the local betting shop on a high street where bets were placed manually. However, modern forms of sports betting are far more sophisticated in which sports fans all over the world can place bets on their favorite international teams online.
In 2020, the global online sports betting industry reached a total worth of 203 billion US Dollars; employing more than 197 thousand people and fueling more than 31 thousand businesses across the world. This significant contribution to the economy is now being recognized by more and more countries, in which the US Supreme Court legalized online betting in 2018, overturning a 1992 PASPA ruling.
Since then, more than 50% of US adults have placed a sport bet at least once, while football was the most popular sport for betting activity. By the end of this year, the global revenue of the online sports industry is said to be worth around $2.5 billion in the US alone.
Another area where the gambling industry has seen significant growth is through online casinos, in which there’s never been so much competition between providers. As technology improves, the amount of people who are able to access the internet through a computer or mobile device has also significantly grown, meaning there’s now an even bigger market for online casino games.
One of the great things about online casinos is that people from across the world can access their favorite casino games through offshore providers. While some countries have not yet changed the law about online gambling, offshore providers are able to offer their services to foreign nationals.
There are a number of technologies that have fueled the growth of online casinos, and these include:
The introduction of cryptocurrencies as a form of payment has meant that more players are comfortable accessing online gambling services. As cryptocurrencies are run on blockchain technology and not linked to any central bank, cryptocurrency payment may offer a much safer means of online payments.
Not only are clients able to remain more anonymous but they’re also able to limit the risk of credit card fraud by eliminating the need to enter their card details. While cryptocurrencies aren’t always stable, they offer many benefits when it comes to online banking.
One of the issues with migrating from brick-and-mortar casino venues to online establishments has been the ability to bridge the physical and digital divide. One way this has been tackled is through VR technology, which provides a much more immersive experience.
What’s more, VR headsets are now surprisingly affordable with the cheapest headsets coming in at around $600 and the price is dropping yearly. While VR headsets were once used for major architecture and construction projects, they can now be used to make you feel more immersed in the game while eliminating many distractions.
4G and 5G technology
One of the things limiting online casino growth was the level of accessibility. While many people in the world have access to the internet, there were also many who didn’t receive a good enough quality of Wi-Fi to be able to access online gaming.
However, now that 4G and 5G are becoming more widespread, the user experience at online casinos is significantly improving and gamblers are quickly able to access their favorite online games.
Advanced Slot Games
When we mention slot games, many people may imagine a rather large machine in the back of a smoky old pub, where fruit symbols would display on the screen as the gear was pulled. However, today’s online slot games are much more sophisticated, offering a more gaming-like experience where action and adventure are on the cards.
The Complete Online Experience
No longer is it good enough to expect customers to keep coming back because of the great quality and variety of games. Due to the sheer number of online casinos available, suppliers are now scrambling to attract and retain players. As such, they’re having to come up with increasingly innovative ways to create brand loyalty.
Some of the ways online casinos are approaching this is by offering a complete social experience where players can join leadership boards, join chat rooms with other players and build up prizes or status badges in their online community.
The Future of Online Gambling
With an ever-increasing growth rate, it seems that online gambling is set to take over from almost all physical gambling venues soon. While nothing quite beats a trip to the famous casinos of Monte Carlo or Vegas, there’s no denying that the realistic qualities and improved user experience of online gambling will mean that one day, physical gambling venues might not be around anymore.
As for the possibilities of online gambling, only time will tell just how large the industry will grow.