The online gambling industry took flight in the 1990s, reaping the benefits of the commercialization of the internet. Since then, online gambling companies across the world have been on an upwards trend, and recent research studies suggest the global market will reach a value of more than $140 billion by 2030. That represents a CAGR growth of over 10% between 2022 and 2030.
What’s Causing This Growth?
There are several reasons the global online gambling market is growing financially. First, there’s increasing smartphone and internet penetration across the globe, and technologies like virtual reality and blockchain are starting to display just how powerful and influential they can be in this industry. That is why many online casinos are starting to integrate cryptocurrency payments and prizes in the form of NFTs on their platforms.
Loyal fan bases are also contributing to the growth of online gambling. This business doesn’t just involve classic games like poker or blackjack but wagering on events within global and localized popular culture. For example, in the United Kingdom, many online gamblers participate in special bets betting, where they wager on events like the BBC Sports Personality of The Year and reality shows like Strictly Come Dancing. Strictly Come Dancing is a popular reality dance competition, and people will bet on Strictly Come Dancing odds, such as the outright winner of the competition. Individuals in the UK also actively wager on sporting events, such as the World Cup.
Sports betting, in particular, is contributing to the growth of the online gambling business. According to reports, sports betting held the largest market share in 2021, with sports like boxing, football, and baseball dominating the market. In the United States alone, Morgan Stanley, a reputable financial services company, forecasted the American sports betting market will reach around $12 billion by 2025. The company estimated that the state of Pennsylvania will account for much of this growth ($701 million). Morgan Stanley has also reiterated the influence of video games
Future Improvements For The Online Gambling Industry
Despite this growth, the online gambling business can improve in some areas. For example, more widespread acceptance of cryptocurrency payments in online casinos may be beneficial for the industry. Virtual currency transactions are becoming more popular every day due to the benefits of crypto. In particular, cryptocurrency transactions don’t involve intermediaries, giving customers more control over their finances.
Cryptocurrency transactions are also faster than traditional credit card transactions because they don’t have to go through several stages to get processed. Transitioning to a business model that accepts cryptocurrency transactions will also demonstrate online casinos are paying attention to consumer trends. For example, reports suggest the global blockchain industry (the technology powering cryptocurrencies) will grow by nearly $40 billion by 2025.