(STL.News) Since the birth of the industry in 1994, iGaming has seen rapid growth. From nothing, the industry grew to be worth $46 billion in 2017 and is expected to rise to $88 billion by 2024. This is thanks to growth in several areas.
Firstly, the poker boom of the early 2000s saw online casinos and poker rooms gain significant numbers of new customers. Secondly, sports betting has been the largest area of growth in recent years, particularly in Europe.
There had been concern that this growth in online sports betting would come at the detriment of brick and mortar betting shops. However, these have been turned out to be unfounded. Instead, the two seem to coexist with each other, acting as marketing tools for each other.
Heading into 2020, what can we expect from the iGaming industry?
Poker and Casinos
Online casinos and poker rooms are continuing to enjoy steady growth. European revenues will probably reach around €25 billion by the end of the year, while in the US, more states are expected to allow some online casinos and actual money poker rooms to operate, providing significant growth opportunities.
Online casinos account for 32.1% of iGaming revenues in Europe, and while growth is likely to continue in this area, the market is maturing. Large companies hold dominant positions, and mergers and acquisitions are becoming the easiest way to gain larger market shares.
Smaller casinos will continue to thrive, although they will need deep pockets to spend on marketing if they want to stand a chance of succeeding.
Research has shown that around 40% of the entire online gambling revenue comes from sports betting. This has been fuelled by substantial investment in advertisements and sponsorship of sports teams, events, and TV coverage. The Euro 2020 tournament will also be a boon to the European sports betting market, providing a major competition that will attract the attention of the general public beyond regular football fans.
Europe will continue to be the largest market for sports betting, but the United States will continue its trend of catching up. The population of the US in on par with the European Union, yet it remains a relatively untapped market, which is providing scope for massive growth in North America.
Recent legislation changes in the United States, started by a change in federal law in 2018, which allowed states to set their own rules for iGaming, has seen a race by companies in the sector to acquire market share in these underserved territories.
Shortly after the ruling, in October 2018, New Jersey saw $250 million of sports betting transactions, while Nevada processed $528 million.
While there is nothing certain at present, similar changes in Asia could also take place. This would open up enormous possibilities for iGaming companies. Betting on esports could also become an area of growth for this part of the industry.
Despite growing to a massive industry in just 25 years, iGaming doesn’t look like it will be slowing down any time soon. With the United States opening up to online wagering and further growth in sports betting around the world, 2020 looks like it’ll be an excellent year for the iGaming industry.