Online gambling experienced a global surge during the coronavirus-induced lockdowns of 2020. Traditional sporting and gaming venues across the world were forced to shut their doors. As a result, the internet saw an increase in that market share. The upwards trend seems to continue thanks to technological advances, a paradigm shift of adopting virtual environments, and a wider variety of casino, poker, and sports betting sites.
The global market continues to spike as more jurisdictions regulate online casinos to generate additional tax revenue. Many gamblers contributed to this behavioral change as they had to take their business online during lockdowns. The question remains whether or not this rise in online gambling will continue as the pandemic slows down.
News Highlights
- Legalized online betting can help generate tax revenue in economies hit by the pandemic.
- Crypto payments are gaining popularity and could overshadow traditional banking methods.
- The industry is constantly evolving, influenced by technological and socio-economic factors.
Online Casino Gambling Outbreak in 2020
Several industries have felt immense strain after extensive lockdowns and social distancing to curb the spread of Coronavirus. However, the gambling industry experienced a dramatic uptake in players during this period despite the closure of brick-and-mortar casinos, bars, bingo halls, horse tracks, and more.
The industry’s burgeoning growth resulted from players opting to play at online casinos, which remained open during this time. It’s hardly surprising as studies indicate that in most countries, mobile users account for about 80% of all users in the online gambling industry.
Studies also indicate that the global online gambling market will grow from $64.13 billion in 2020 to $72.02 billion in 2021 at a compound annual growth rate (CAGR) of 12.3%.
Will the Online Casino Boom Continue?
Before the pandemic outbreak, the global online gambling market size in 2019 was worth $53.7 billion, with constant growth reported from 2016 onwards.
Since then, America has also allowed several states to reopen physical casinos following an extensive vaccine rollout, which will naturally boost the gambling industry. The question remains; will players be swayed to venture out to casinos if they can easily access real money online casinos from home?
Online adoption will see significant growth driven by technological advances, rapid urbanization, and the expansion of the internet worldwide. In addition to these factors, cultural approval and legalization of online betting, especially in America, will also significantly boost the market’s growth.
Factors That Will Affect the Success of Online Casinos
The continued success of the global gambling market, both physical and online, depends on several critical factors such as fintech, product development, and technological progression. If casinos can effectively harness these factors, they can successfully drive additional market growth and healthy competition.
The top factors that can impact growth are as follows:
Cryptocurrency
More online casinos accept crypto payments than ever before, and it certainly looks to become the norm. Gambling sites are increasingly ramping up efforts to include more cryptos like Bitcoin, Ethereum, and Ripple.
It also bodes well for players as their transactions are logged on the blockchain, eliminating any trust issues players may have.
Technology
Online casinos continuously incorporate new tech into their platforms, with the industry being a forerunner adopting technology. Virtual reality is already on offer, while others are considering the use of Augmented Reality.
High internet speeds have paved the way for live casino games streamed in HD and 4K from professional film studios.
Game Variety
Innovation allows online casino developers to create a wider variety of games with optimized animation and graphics. The latest titles boast exceptional player experience and naturally pave the way for more improvements.
3D slots were something you could only dream of in the past, but now they’re available at several US online casinos.
What to Expect from US Online Gambling
Despite the pandemic inflicting severe fiscal damage, several industries have flourished throughout this challenging period. The online casino industry is a prime example of a steadfast sector that has weathered the storm.
Revenues have soared, more players signed up, and naturally, competition has intensified, leading to new gaming developments and tech implementation. Projections indicate that there is no stopping the online gambling industry’s growth as market penetration increases and more gaming is available on mobile devices.
