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Will the Online Gambling Industry Break $1 Trillion in 2022?
By Shane Addinall Jan 22, 2022 IndustryA research study shows that wagers in the online gambling industry could cross the $1 trillion mark. Can the igaming sector reach this breath-taking height and what would stakeholders need to do?Remote gambling is one of the few industries which experienced a positive impact from the COVID-19 pandemic. Land-based casinos were closed, and punters turned to online platforms to enjoy some wagering fun. Thanks to this, the online industry had record-breaking growth during 2021.
According to a research study conducted by Juniper Research, the value of online gambling wagers could reach a mind-boggling $950 billion during 2021. The Mobile & Online Gambling study includes casinos, lotteries, betting & VR for the period of 2016 – 2021. Most traditional online gambling reports exclude lotteries, as these are predominantly state-owned, but Juniper expects a shift, and they may be right on the money.
The team at Juniper Research, a UK-based company, provides services to the hi-tech communications sectors worldwide and does so through consulting on their research and analytical studies.
Punters Migrating to Online Gambling
With the massive influx of consumers from land-based facilities to remote gambling platforms and state-run lotteries grasping the mammoth potential of iLottery, the wagering sector is set for unprecedented growth in the next year.
Juniper’s research predicted that wager numbers will approach a total spend, on all digital goods and services, that could pass the $1 trillion mark.
Their report, Mobile & Online Gambling: Casinos, Lotteries, Betting & VR 2016 -2021 indicated that consumers migrated to online betting and that much of the industry growth stemmed from users of mobile channels.
Statistics show that 6.648 billion people own smartphones throughout the world, which is almost double the number recorded 5 years ago. Studies predict that by 2025, 72% of all internet users will access the web solely through their smartphones.
Technological Advances and Customer Loyalty
Innovations within igaming, such as Virtual Reality games, branded content, live dealer games, and cryptocurrency, all make remote gambling more attractive to experienced and new punters. Based on the demographic that high-tech gaming like VR attracts, Juniper predicts that this vertical will account for close to half of the wagers in value.
We expect that more VR enabled games would need to be introduced for this to come to fruition, but chances are that high rollers will gladly pay top dollar for Virtual Reality gambling experiences. Imagine something on the level of a VR WSOP-type tournament.
Lauren Foye, Juniper’s Research Author, said:
“The new format of VR will attract a niche clientele initially, though these participants will wager significant amounts on real-world ‘casino-style’ VR gambling products.”
One of the most important factors contributing to sustainable industry growth is establishing customer loyalty. As the industry matures, providers can turn their attention to strategies that foster return business. Customer service, quality and unique content, and data security all build trusting relationships with online consumers, and we’ve seen the best brands harnessing these factors to their advantage.
The Road to $1 Trillion
Although some regions, like the Philippines, prohibit remote wagering, the general trend is to establish a regulated market where consumers enjoy protection. In 2021, we saw major players like the Netherlands and Germany enter the regulated world of igaming and states across the USA opened to sports betting and online gambling.
Blockchain technology is taking the industry by storm as well, and this is not just as a currency. Indeed, we have seen the rise of Bitcoin and other cryptocurrencies with some platforms solely focusing on this, but the technology is improving other parts of igaming too. Provably fair blockchain games and the use of blockchain ledgers for KYC and AML are on the rise as the advantage of immutable data becomes strikingly clear.
Software developers have also shown how their creative influence, combined with technological advances, can attract players and create loyalty. Platforms gain a competitive edge by offering games from the top studios and we’ve seen creative geniuses come out to play in the last few years. Interactive slot games, live-dealer table games, colourful live game shows, and unbeatable mechanics keep players engaged and coming back for more. Foye commented:
“User engagement goes a long way towards drawing in return business. Providing features such as news and media on favourite teams, as well as personalised offerings based on past betting activity, enables greater engagement and is likely to reduce churn.”
Branded content comes with its own set of advantages and the multi-year deal between IGT and WWE for branded lottery games is proof that savvy operators understand this. Unibet signed a deal with the Pittsburgh Steelers last year for their live-dealer games and other providers have used Hollywood titles and famous music artists to create eye-catching games.
Unthinkable Potential
Online wagering is playing a hand with unthinkable potential and because innovation keeps rolling in the future of igaming is incredibly exciting. Consistent service providers will carve out a distinguished position for themselves in the highly competitive market. Let’s see what this year will bring to the table.
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