The iGaming industry is growing faster and faster, and the climbing revenues lead to increasing social contributions. In a new analysis, Ayvar Gabidullin, Business Development Manager at Slotegrator, explains how online gaming has become a key part of global economic growth.
Every year, land-based casinos become less popular as growing numbers of players choose to roll the dice or spin the slots online. While the trend has been growing for a while, it was dramatically accelerated by the covid pandemic, when quarantines and other restrictions squeezed land-based casinos’ revenue streams to a trickle. Overall, modern users find online casinos to be more comfortable and convenient than their land-based counterparts, and especially enjoy the incredible variety of available gaming content.
According to forecasts in an exclusive report by Acumen Research and Consulting, the online gambling market size will reach an estimated $172 billion by 2030 — growing at an annual CAGR of 11.6% due to the rise of mobile gambling. Such dynamics may be due to the increase in the number of operators in different markets because launching an online casino is far less expensive than opening a land-based gambling establishment. Online gaming platforms don’t need a large staff, capital facilities, and heavy gaming equipment — only quality software. With proper budget planning, online casino operators incur low maintenance costs. Therefore, more and more investors are diving into iGaming, and respectively, the market is growing.
Operators have a few tools at their disposal for scaling their business. They can integrate new games that suit the taste of their target audience, offer bonuses and loyalty programs, expand their marketing activities, and more. Operators who make good use of these tools are often able to run a very competitive business.
Impact of the gambling business on the economy
Almost all jurisdictions levy gambling taxes on casino operators. States use these taxes to fund crucial social programs. While this often begins with gambling harm reduction programs, it doesn’t stop there; public health and sports initiatives are common beneficiaries of gambling tax revenues. In many countries, iGaming contributes a substantial portion of overall tax revenues.
Online gambling has other economic benefits as well. For example, with the development of the market, the number of related projects increases — sites that offer gambling reviews, fintech startups, digital marketing agencies, and so on. These in turn drive job creation and further tax contributions. This turns into a ripple effect with a positive impact on the global economy.
Software is required to launch a gambling project. Most operators do not have sufficient knowledge to develop high-quality software, so they turn to contractors. The same goes for web hosting, creating more work opportunities for both segments.
The development of the iGaming industry contributes to a change in the economic paradigm. Every year there are more and more online casino operators, especially in the emerging markets of Africa, Asia, and Latin America. Everyone benefits from this — the state, business, and consumers.