How iGaming Became A Multibillion-Dollar Industry
The online gaming market value is estimated to be valued at about $173 billion and is projected to more than double in 2027.
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The iGaming industry is unique and has been around for a while; nevertheless, the rapid rise in the sheer market size has brought it once again into the spotlight. And in this article, we will be expounding on the reason(s) for this growth and why it is a promising emerging market.
Right off the bat, what is iGaming? In layman’s terms, though often misleading, it stands for “internet Gaming.” However, more elaborately, iGaming typifies all forms of online gambling, including regular online casinos, crypto casinos, poker rooms, e-sports betting, as well as binary trading. Setting it aside from all other forms of gaming that occurs on the internet.
The 2 Catalysts for Growth
Currently, the online gaming market value is estimated to be valued at about $173 billion and is projected to more than double in 2027. The exponential growth of the online gaming industry could be linked to the internet penetration — the increasing availability of smart devices such as smartphones, laptops, and, even more recently, Virtual reality headsets. Also, the covid-19 pandemic restrictions acted as a catalyst to help further drive this increase as people find it easy to engage in online gaming and gambling activities from the comfort of their homes. In order not to miss out on action going in the digital space, many land-based casinos quickly developed mobile and web versions of their casino games, bringing these games right into the comfort zone of the players.
Quite spectacularly, online casino games proliferated and adapted. One notable adaptation is the development of cryptocurrency casinos, where specified cryptocurrencies can be used as a means of transactions. These crypto casinos further bridged the gap for players across the globe who will be interested in the online gambling world, especially casino games but are limited by several financial institutions and country regulations. This formula appears to work, with over 5 million crypto gamblers visiting crypto casino sites daily to play their favorite game and earn money. Even now, when these restrictions have been eased in the post-pandemic era, online gambling has come to stay.
The Rising Momentum
The iGaming industry has made giant strides since its inception into the mainstream market in 1994 following the passing of the Free Trade and Processing Zone Act in Antigua and Barbuda. As a standalone, the global online gambling market size has been on the increase, and as of the year 2021, the market was valued at about $57.54 billion, which is projected to exceed a worth of $90 billion by 2023, expanding at a compound annual growth rate (CAGR) of 11.7% from 2022 to 2023.
With major stocks performing their worsts in years, the cryptocurrency market toppling, and the United States bordering on the brink of its worst inflation in over 40 years, it is no news that the general financial market is in a current downturn. And as with other industries riding on the financial market, the iGaming industry sits in an eccentric position and may not have been absolved from the far-reaching effects of the economic downturn.
However, despite the rising inflation and the increasing consumer prices indices being a concern in 2022, the casino industry, including iGaming and sports betting, has seen a positive increase in profit margin, with the Gross Gaming Revenue totaling about $5.1 billion in May 2022, which is a 1.5% increase from the previous month and about a 9.5% better than May 2021. And of the available casino games, slot machines appear to be a high-performer, delivering the highest revenue, generating over $2.9 billion— about 58% of the entire month’s income.
In conclusion, the exponential growth of the iGambling industry is like a projectile set off on a perfectly timed opportunity, and despite the friction, it is gaining momentum. The online gambling market has the ingredients to expand, adapt and, by harnessing the latest technologies, even grow to ineffable size.
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