Over the last few years and against all odds, one sector, in particular, has experienced impressive growth and expansion. More online gambling companies are popping up, mergers and acquisitions between big brands are ongoing, and existing brands are expanding their operations and portfolios.
So, what’s driving the growth and is it a good time to consider entering the market?
What the Statistics Say
The combined land-based and online gambling sectors were worth a staggering $262 billion globally in 2019. Since then, the number has risen significantly, and now, online gambling alone is worth more than $72.02 billion.
This figure is set to increase at a compound annual growth rate of around 12.3% over the next few years, with no sign of slowing down. These figures serve as an example of an industry that is going from strength to strength even while some other markets are struggling.
What’s Driving It?
However, it’s not just the value of the sector that’s increasing, the number of players is increasing as well. New demographics of players are driving forth significant interest in gambling of all types. The integration of blockchain, VR, and AR technologies has made online gambling particularly appealing to a more tech-savvy generation.
Other factors for this impressive growth include widespread smartphones usage. More than 3.8 billion smartphones are currently in use, and more than 4.66 billion people have access to the internet. This means there is a great demand for online entertainment such as online gambling.
Another driver is the use of cryptocurrency as a payment method. Players who don’t have a bank account or don’t want to use their regular credit or debit card for gambling have taken to using cryptocurrency instead. This brings with it lower transaction costs and times and high levels of security and accountability.
We must also look at the way that gambling online has experienced a shift in image perception: the sector has become cooler and more interesting. After all, betting is no longer something done exclusively by the older generation in bricks-and-mortar betting shops.
The online world has opened up new possibilities where betting options as well as their bonus incentives can be accessed quickly and easily via mobile or PC. For example, there’s the Soccer Bet Builder (a personalized betting option) and Cash Out (claiming your return before an event has finished) features that help bettors to tailor their choices based on their needs. The advantages to the online betting experience include the fact that bets can be placed almost instantly on any portable device, through an app or browser, and bettors now have a seemingly unlimited variety of options at hand. This means that they can find the most appropriate and convenient outlet to suit their needs.
These things combined have contributed to a global uptick in the numbers of people engaging in online gambling and betting. With US states currently mulling the legalization of certain forms of online gambling, this could also send over 100 million new players the industry’s way.
What Should Entrepreneurs Know?
The time is now to consider a startup in online gambling. Statistics, projections, and historical data demonstrate steady growth, and the development of new technologies will only bolster this. Of course, you don’t need to set up an entire platform; there are other ways you can get involved. Affiliate marketing, software development, advertising, game design, and more can all create lucrative revenue streams.