According to Cision, the global online gambling market will be worth $125 billion in the next seven years. Meanwhile, in 2019, it was estimated to be worth $53.7 billion.
With the breakout of the pandemic, most people were surprised by this projection. However, some industry watchers believe that 2020 is the best year for online gambling. Could it be because of the shutdown of the land-based casinos during the lockdown? Partly so, but other factors are expected to propel the growth in the online gambling market.
Grand View Research recently reported that the compound annual growth rate (CAGR) of the online market is estimated at 11.5 percent from 2020 to 2027. The research also outlined factors that will help actualize the rapid growth in the global online gambling industry.
Let’s take a sneak peek!
Factors to Propel the Growth of Online Gambling Global Market
In the Grand View Research report, some factors were outlined as the reason for the estimated growth of the online gambling market.
Smartphones: No doubt, the use of smartphones has changed online transactions. The online gambling market has also benefited immensely from this innovation. Companies are creating apps and making the use of smartphones to gamble online more comfortable.
Mobile Apps: The introduction of cost-effective mobile apps will also improve the fortunes of the industry. Accessing your favorite gambling casino games has become easier with apps.
Legalization of Online Gambling: Recently, the drop in revenue generated from land-based companies has prompted some countries to legalize online gambling. For instance, some states in the United States are looking to legalize online gambling.
Cultural Approval: Before now, it was taboo to gamble online in some countries. Switzerland recently legalized online gambling. It is becoming culturally acceptable in most countries across the globe.
Online Gambling Partnership: In the past, it was rare for most online gambling companies to partner. Presently, online gambling companies are partnering in a bid to make more profit. It seems they now understand that the market space is very big and can accommodate everybody.
Impact of COVID-19 on the Online Gambling Global Market
The COVID-19 pandemic ruined so many plans. In some cases, most companies have gone under because of the pandemic. Interestingly, the pandemic has been a blessing to the online gambling industry. Notwithstanding the several lockdowns that were imposed, the online gambling market generated some revenue.
The pandemic made online gambling popular among the regular land-based casino customers. Before the pandemic, some regular land-based players don’t gamble online for real money. But according to various statistics, it appears that online gambling platforms witnessed the highest registration of new customers in 2020.
During the lockdown, the only available option to gamble was to visit online websites. Remember, the land-based casinos were locked down even after the lockdown was lifted.
The Role of Top Online Gambling Companies
It seems that most top online gambling companies are cashing in on the boom in the online global market. For instance, several digital sports companies are entering into agreements with other companies to provide better services.
One of such agreements was between DraftKings Inc. and InComm Payments. DraftKings is a reputable digital sports company known for providing daily fantasy sports and mobile sports betting. On the other hand, InComm Payments is a leading payment tech company. The partnership aims to make DraftKings accessible at convenience stores such as 7-Eleven, Speedway, Sheetz, and Dollar General. They also intend to create a DraftKings gift card for customers worth $25 and $50. Other companies toeing the same line are:
Playgon Games signing a distribution deal with Swintt Malta LTD
Scientific Games Corporation partnering with FanDuel Group
Stock Market Index of Digital Sports Companies
The stocks of digital companies are rapidly increasing. More some of the companies that were active in the NASDAQ stock market this week are:
DraftKings Inc. (DKNG)
Penn National Gaming Inc. (PENN)
Scientific Games Corporation (SGMS)
Landcadia Holdings II (LCA)
Also, at the OTCQB stock market, Playgon Games Inc. (PLGNF) recorded some gains too. Consequently, the digital company’s stock price is expected to increase globally with the recent interest in online gaming. More so, with more states legalizing online gambling, more growth is expected.
What Is the Fate of Land-based Gambling Platforms?
Frankly, the only remedy for the land-based casino is to adopt or incorporate some form of digital gambling in their operations or go under.
This will also endear some customers to patronize their business.
Finally, online gambling is making waves in so many countries. The growth will increase with the recent setbacks in the activities of land-based gambling halls.