If there is one industry that could truly be described as a growth industry right now, it is the online casino business. Over the past few years, revenues have surged across the industry to record heights, with online betting platforms being valued at close to $60 billion in 2021.
Record numbers of new members are signing up to online casinos, and people tend to be playing games for longer and spending more. These are the types of figures that many other entertainment sectors, such as video gaming, could only dream of. So, what is driving surging profits at online casinos? Let’s take a closer look and find out.
New gaming experiences
One major driver of growth has likely been the development of new and novel online gambling experiences, enabled by emerging technologies. A case in point here is one of the most popular new online casino games, live roulette.
For instance, if you chose to play online roulette at Paddy Power, a major international operator, you could enter a “live roulette lounge”. Here, you can connect to a real-life dealer and roulette wheel via a live video uplink. This allows anyone to try titles like Lightning Roulette and Quantum Roulette for a more immersive online gambling experience, a far cry from the 8-bit digital poker games of yesteryear.
More ways to pay
Another trend that should not go unnoticed is the eagerness of the gambling industry to adopt popular digital payments technology. Once upon a time, online gamblers would have to pay for poker and slots through an onerous card payment process.
However, many of the leading providers now allow for instant cash deposits and withdrawals when players use digital payment providers like PayPal, Apple Pay, or Klarna. This has made real-money gaming more convenient and accessible, driving growth in turn.
The expansion of online casinos has also occurred on a geographic scale. While some of the largest providers a few short years ago were focused on a small handful of countries such as the UK or Germany, things have changed dramatically.
The US has experienced a massive expansion of online casino gaming, meaning that the world’s largest economy is now driving a lot of growth. Meanwhile, increasing smartphone penetration in emerging markets has meant that casinos can now market their services to a wider audience than previously thought possible.
It is also worth noting that it is much easier to launch an online gambling platform than before. This is partly due to the rise of turnkey game and software providers, which will furnish a new platform with popular games. This way, the casino founder does not need to develop all of the games and digital infrastructure in-house.
Major game providers such as NetEnt, IGT, Big Time Gaming, and Yggdrasil will put all of their popular games on your casino site, provided you pay your license fee. This has made it much easier for the market to grow over the past few years.
So, will the online gambling market continue growing at its current rate? If these trends continue, we expect growth to remain high for the foreseeable.