Online Gambling Business in 2023: Promising Opportunities

Last year, the online issue Research And Markets published an 86-page report on online gambling trends and tendencies. Smart Money experts studied the review to talk about the areas of the iGaming industry that have potential.

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Online Market Growth Factors

The Research And Markets study says that at the beginning of this year the iGaming industry amounted to $57.1 billion. Experts predict that by 2025 its capitalisation will reach $97.7 billion, taking into account an average annual rise of 11.3%.

The online gambling business is actively moving forward: in four years the market has almost doubled.

Key growth indicators for the iGaming industry:

1. Investment in the sector. The field leaders are improving their projects through the use of Blockchain, artificial intelligence, VR and AR. Gambling regulators are also not far behind, utilising IT solutions to control the honesty of the results and combat addiction.
2. Increase in the number of online users. Rapid urbanisation and the growing expansion of the worldwide web internationally, are actively influencing the development of the field. Gamblers prefer to spin slot reels online due to continuous play, in a convenient format and without leaving home.
3. Income growth. This decade is a period of economic prosperity in many countries. Residents will earn more and, as a result, spend money on a good and dynamic game on the Web.
4. Active legalisation of gambling. The cultural acceptance of this activity in developed jurisdictions is also driving the expansion. The authorities are reviewing their attitude towards gambling, focusing on a good tax base in the future.
5. Growing adoption of smartphones. Online players are no longer “chained” to a computer monitor. They can play while at home, at work, on public transport, or on a walk. The presentation of budget gadgets by IT corporations Samsung and Apple also contributes to the spread of mobile devices and the global market development

Segmentation of the iGaming Industry by Types of Games

In the coming decade, the gambling business will demonstrate impressive development in all areas. There are a few key sectors that will become drivers of the market as a whole.

According to the predictions of the publication Research And Markets, soon, the capitalisation of the iGaming industry will be $74.2 billion. Over the year, operator revenues will increase by $17.1 billion, while betting rates will show the highest growth.

Consider the expected yearly distribution of income by activities:

The online wagering segment will bring the greatest profit to business owners in 2023. Gamers prefer to wager on high-demand football and basketball matches, not forgetting fast-paced eSports competitions and traditional horse racing contests. It is these disciplines that will provide a massive share of income within the betting segment.

Looking at the future of online wagering, many companies are launching sponsorship campaigns as part of their marketing initiatives and strategic expansions:

• In 2020, for example, the Austrian brand Bwin Interactive Entertainment AG became a sponsor of the Real Madrid and Milan football clubs.
• The well-known company William Hill Plc has been supporting the US National Football League for two years now.
• 9 out of 20 clubs in the English Premier League had betting company logos on their players' jerseys for the 2020-21 season. In total, the companies spent $330.5 million on deals. The teams were sponsored by Betway Group, Bet365 Group Ltd, Bet365 Group Ltd and other wagering operators.

The launch of the casino business in the near future will also bring good profits to operators. Interactive slot machines will generate $24.9 billion in revenue or 33.6% of the total market capitalisation. In addition to slots, gamers will be actively interested in instant games and content with live dealers.

Gambling Industry Statistics by Device Type

Consider the approximate distribution of revenue depending on the equipment used for the game:

More than half of the global iGaming revenue will come from mobile gambling. This will be facilitated by the active use of smartphones by residents of developed countries.

In Europe, for example, 79% of the adult population have mobile gadgets and spend about two hours a day on them. The constant technological development of smartphones makes gambling available on these devices.

Entrepreneurs who decide to open an online casino should not forget about desktop products. Many gamers prefer to play from them, noting large computer screens and increased power parameters (loading speed, RAM size).

The desktop gaming segment will definitely not lose its audience in the coming years.

Promising Regions for Launching a Casino Business

The online edition Research And Markets predicts that soon, the profit in internet gaming will be distributed as follows:

Operators who decide to buy online casinos should focus on the European audience. The region is famous for the high incomes of the local population and long-term sports traditions. In most countries, including the UK, Germany and Italy, all types of gambling are allowed: bids, poker, slots, and lotteries.

The second most profitable regions, Asia and Australia, will bring $20.6 billion in revenue. The driving force in the Asian iGaming market is real dealer table games. Live titles combine centuries-old traditions of the region and innovative modernities in the industry.

Australia has already shown an impressive boost in the past, with a 67% increase in the number of online gamblers in the country due to the pandemic. Soon, analysts also expect revenue to multiply, given that online gambling is allowed in all six Australian states.

The market size in North America will be $15.9 billion thanks to the legalisation of this activity in 11 states, including Nevada, Pennsylvania, Delaware, West Virginia, and New Jersey. A growing iGaming sector in Canada will support demand in the industry, as will government investment in online activities in Mexico.

The Use of IT Tools in the Gaming Field

Information technology is one of the growth drivers of the market. Consider the key IT solutions that will be relevant in the next decade:

Artificial Intelligence

Machine learning algorithms are used to:

• software development with built-in chatbots;
• support for transparent activities on thematic sites;
• collecting and processing large amounts of information (about gamers, competitors, and market conditions).

In November 2020, the UK Betting and Gaming Council (UKBGC) rolled out the Anonymous Player Awareness System (APAS). The software is based on AI and is used to identify fraudsters and customers with signs of addiction. APAS tracks gamblers' behaviour for 30 seconds and alerts them to safer play.

A casino product with a built-in chatbot helps to attract a solvent audience from social messengers. In addition, the solution frees the operator from many routine tasks: communication with customers, and technical support.

Virtual and Augmented Reality

The use of VR and AR technologies allows to:

• offer a more immersive and realistic experience by recreating 3D renderings of casino tables;
• diversify the interaction between gamblers (visitors of thematic sites see each other, communicate in a virtual chat, exchange gifts);
• increase the geography of users (gamers from different jurisdictions can visit new casino halls literally every day thanks to a reliable VR headset).

At the end of 2019, PokerStars developers released PokerStars VR, a virtual reality poker. The casino software is compatible with Oculus Rift and HTC Vive headsets. Multiplayer tournaments are available in all countries with legalised activity.

Blockchain

The distributed decentralised network is used for:

• honesty control on betting sites and online casinos;
• support for instant and secure transactions;
• production of exciting crypto games with improved mathematics.

Blockchain solutions provide greater flexibility for clients and operators of casino sites. Gamblers are no longer limited in deposit and withdrawal limits. Users can bet even from those countries where gambling is in the "grey" zone.

The work of business owners does not depend on the politics in the region and interbank restrictions. The Blockchain environment functions as a decentralised global network without being tied to local laws.

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• Drivers of iGaming market growth in the next 5–7 years: investments in the field, development of information technologies, income rise among the population, and legalisation of games in many developed countries, including the USA.
• The entertainment industry is segmented. Leadership in the kind of content belongs to sports betting and the championship in the type of equipment used is for mobile gadgets. Among the regions with the highest profitability are Europe, Asia and North America.
• In the near future, operators will actively invest in Blockchain, artificial intelligence, and virtual and augmented reality.

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