Amid the COVID-19 pandemic and the looming economic recession, the online gambling and betting market is growing worldwide.
Coronavirus has led people to confine themselves to their homes during the lockdown. With the practice of social distancing, reducing business activity to a minimum, online gambling offers a great opportunity for people at home looking for social interaction.
As per Grand View Research, the online gambling market is likely to grow at a CAGR of 11.5% from 2020 to 2027, reaching US$127.3 billion by 2027.
Factors that Boosted the Online Casino Market
Factors, such as increased digitalization, secured digital payment options, VR, etc. are playing a crucial role in the growth of online casinos.
Let’s look at a few of the factors boosting the online casino market in the pandemic period.
1- Cryptocurrencies & Digital Payment
The online casino market is gaining momentum due to the increasing use of digital currency.
Digital currency allows players to bypass the traditional financial system and offers instant, frictionless, and anonymous transactions between parties. Players using cryptocurrencies as the mode of payment do not have to wait for days to receive profits through bank transfer.
Cryptocurrency allows cross-border transactions since the fee involved is comparatively lower. There are online bitcoin casinos offering gambling with often zero transaction fees and unlimited free daily transactions.
2- Safety with Blockchain
Some online casinos and online gambling sites have been accused of not being transparent and hiding their dealings. Blockchain proves to help solve these concerns. It allows players to check the payout of the casino and the outcome of a game.
Blockchain technology is a transparent system that records all the actions taken on a platform. Online casinos are also using blockchain technology to hide the identity of the players. Thus, it helps in preventing fraud and increasing the trust of people on online gambling sites.
3- Influence of Virtual Reality
Virtual reality is not only enhancing online learning but also making a significant impact on online casinos. Nowadays, online casinos are using virtual reality technology to provide players with interactive and immersive experiences.
With virtual reality and VR headsets, players can enter into a virtual casino and play all the games without having to travel. Virtual online casinos offer some of the best games, including roulette, video poker, 3D slots, and blackjack. These games are compatible with devices, such as Windows, iOS, and Android.
The online virtual reality casino market is growing as more people continue to purchase VR headsets, VR software, and VR hardware accessories.
4- Proliferation of Smartphone Devices
Rapid penetration of smartphones is also the reason for the growth in the online casino market. As per the expectation, the number of smartphone users will increase to 3.8 billion by 2021.
This increase in smartphone penetration is due to the decline in the average selling price of smartphones. Also, most of the casino players are shifting from desktop to mobile devices as they provide easy access to casino games and e-sports betting.
5- Relaxation in Gambling Regulations
Governments around the world are relaxing the regulations on online gambling to generate revenue. They are offering licenses to vendors to promote gambling activities.
The revenue generated from gambling activities ensures funding for social welfare activities, leads to new employment opportunities, and increases tax income. The gambling industry is becoming a vital part of several economies as it contributes to the country’s GDP. Thus, the liberalization of regulatory frameworks will further increase the growth of the gambling market in the future.
The COVID-19 pandemic has caused a series of unprecedented events affecting every industry. However, the online casino industry is one of the markets consistently growing in the current scenario.
On one hand, the development of the internet and the rapid growth of mobile devices have made online casino games accessible whenever we want. One the other hand, new technological advancements like blockchain or cryptocurrencies have made playing casino games online much safer.