The global online gambling market has continued growing at a steady pace over the last two decades, and this trend will keep going. Today, digital casinos have become more popular than ever, expanding to almost every continent around the world for different reasons.
According to a recent report, the online gambling market is expected to reach $127.3 billion in revenue by 2027, recording a CAGR of 11.5% by 2027 from 2020. This growth is attributable to factors like the increasing penetration of smartphones, the availability of cost-effective casino games, and the rise of new technologies. Here is how the global online gambling market is growing in popularity and the factors contributing to the rise of this multi-billion dollar industry.
How is the global online gambling market growing in popularity?
According to market reports, the global online gambling market will reach $72.02 billion in 2021, growing from $64.13 billion in 2020 with a CAGR of 12.3%. This growth is mainly because of gambling companies resuming their operations and sports betting resumption, which was earlier restricted due to restrictive containment measures like social distancing.
With companies trying to adapt to the new norm, the freemium model of online gambling and the growing popularity of the global betting market are some of the opportunities likely to unfold in a few years. This growth will be propelled by the ease of betting on sports using smartphones and computers paired with the rise of sports betting ads worldwide.
Europe is expected to dominate the global market over the next five years, owing to the legalization of online gambling in the UK with safe and stringent practices laid down. The Asia Pacific is anticipated to record the highest growth rate thanks to the growing adoption of smartphones, online gambling legalization, and a large proportion of the younger population.
The market size is influenced by the betting size and pertinent outcomes. Electronic gambling devices are easily available and inexpensive to run. These devices feature built-in software that mimics the traditional casino experience. However, there’s a growing population of gamers looking for a live dealer experience.
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Key factors contributing to the popularity of the global online gambling market
There are lots of things making a significant impact on the global online gambling market, but only a few can be seen as game-changers in the area. Here are the five most significant factors that are boosting the popularity of the online betting market.
Availability of stable internet connection
Stable internet connections have significantly contributed to the growth of online casinos. That’s because players can enjoy games from anywhere at any moment without any limitations provided that they have a stable internet connection. That convenience comes in handy for most players as land-based casinos can’t replicate it.
5G networks have also helped the online gambling industry to grow, as it offers faster and more effective internet speeds. The network is perfect for virtually connecting everything including people, objects, and devices. It also allows devices to send large data packets securely, leading to a high-quality gaming environment.
Extensive marketing
Effective marketing is another incredible factor contributing to the popularity of online casinos. Most online platforms are heavily investing in marketing strategies, hoping to grab the attention of a huge audience globally. Digital marketing is the most common marketing strategy that most online casinos are using, involving everything from content marketing, social media marketing, and paid ads. These marketing channels are effective in the current market, which explains why online casinos are becoming more popular globally.
The rise of virtual reality online slots
The popularity of virtual reality in the gaming world has influenced the rise of online casinos. The technology allows users to interrelate in an artificial 3D environment through specific electronic devices (VR headsets) to enjoy an interactive and realistic online casino experience.
Virtual reality gaming platforms allow players to experience virtual games with an experience that only land-based casinos can rival. Fortunately, the players don’t need fancy clothes to visit the local casino to enjoy a real experience as everything is done online.
Availability of bonuses
Some players are attracted to playing online casino games because of the available bonuses. Most of these bonuses are offered right from when a player makes the first deposit, although they have different terms and values. Some of the most common bonuses include the welcome bonus, the reload bonus, the VIP bonus, and free games/free spins.
Plenty of online games
In 2021, players have more information and are looking for gambling platforms that can offer them plenty of games to choose from. Most players are easily bored when they come across an online casino with limited online games and they look for sites that offer plenty of games. Fortunately, leading online casino platforms offer a wide selection of games to choose from, allowing them to cater to a wide range of audiences.
Bottom line
The global online gambling industry has undoubtedly seen massive growth in the last few years. You can also expect the industry to witness massive growth in the next five years promoted by the factors above. Online casinos have also boosted the economy, as gambling platforms create jobs and boost the economy.
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