There has never been a better time to start an online gambling company, and the number of requests has proved this – Fast Offshore is fielding from gaming entrepreneurs. In his latest column for Yogonet, iGaming industry consultant Ron Mendelson analyzes trends and opportunities in the market.
The market has shown significant resilience over a turbulent couple of years, and as we seem to be going from crisis to crisis, there is still no cause for concern in iGaming. Growth is predicted to increase steadily until the end of the decade, diversifying into new segments and providing ample opportunity for innovation.
By the end of 2021, the online gambling and betting market had reached an impressive $61.5 million and is estimated to surge to over $114 billion by the end of 2028. This shows a rate of growth of around 11% year on year, over the next six years, according to Zion Market Research in a recent study.
As per the analysis, one of the key areas of growth during the period analysed is Asia Pacific, due in part to increased access to internet services. This will be further compounded by the loosening of rules by online betting and gaming authorities, leading to more operators and more interested clients.
In general, the study found that online gambling was experiencing steady but impressive growth. This growth, across all markets, is duelled by the increased adoption of smartphones, access to quicker and lower cost internet, and higher spending power levels among the public. Additionally, players’ curiosity has been piqued as vendors invest in new technologies, including Metaverse, AR, VR, AI and cryptocurrencies, to retain player interest.
Another factor driving forward growth is the rise in female participation among players. Previously, the online and offline gambling sector was appealing mainly to men, but this is steadily balancing out. Operators should also be aware that cashless payment methods are becoming more desirable as people prioritise speed, security, and low transaction costs when gambling online.
Regarding client retention, bonus programmes are essential as research shows that these help create brand loyalty and prevent consumers from going elsewhere. They also increase revenue streams for all involved.
But by far, one of the leading factors for market growth will be the ease of making online payments. Over the last few years, playing online has become much easier as digital and mobile payments have become more mainstream. Online payment services have also become more secure and safe, boosting their adoption in the online gambling. In addition, simple and convenient payment methods have encouraged people to gamble, opening up a world of possibilities to increase cash flows. Popular payment types include eWallets, cards, bitcoin and crypto, and third-party payment gateways. The further diversification and competitiveness of this sector will drive forward a better payment experience for customers.
As for limitations, issues such as awareness of the negative impact of gambling on vulnerable populations will increase, potentially disrupting revenue. The issue of gambling addiction is further compounded by addiction to smartphones and the internet in general. It is therefore up to operators to take action to ensure their players are gambling healthily. This can include self-exclusion, limits, bans, supervision of betting activity, and providing access to support for those that need it. Otherwise, the situation could deteriorate, and we could see more bans rolled out like those already in force in UAE, Qatar and Poland, and toughening laws in India, Singapore, and Japan.
The report found that sports betting continues to reign supreme in terms of game type. Betting on sports and other events and emerging types such as eSports betting and even fantasy sports betting are expected to increase during the forecast period. Sponsorships in online betting are also expected to increase, which will help develop the popularity of the segment further. In Asia Pacific, in particular, growing disposable income amongst the population means more money for gambling, specifically live-action betting and fixed odds.
There are no surprises when it comes to device type either. Desktop is still number one due to the high level of graphic design, image quality, and storage space which enhances the consumer experience. However, mobile gambling will continue to grow steadily as smartphones become more sophisticated and players look for convenience and flexibility in terms of entertainment. In fact, another report by Globe News Wire states that mobile phone penetration into the market will contribute to it growing to $172 billion by 2030 with a CAGR of 11.6%.
As corporate service providers with 25 years of experience in iGaming, we have helped a very wide selection of clientele. Our professional team are friendly, responsive, and highly knowledgeable in their field. We provide custom and turnkey solutions, encompassing all the services you need to get started in various jurisdictions. From company incorporation and licensing to payment, compliance, and ongoing maintenance, Fast Offshore has you covered.