Online gambling has been one of the largest growing markets since the advent of the Internet. Thanks to innovations, it has been developing remarkably fast. Significant changes occur in this segment as software developers utilizing the latest technologies open up new opportunities for gamblers.
The year 2020 showed us that the future is unpredictable. Like in other industries, the COVID-19 pandemic has affected the gaming industry, its performance, competitive environment, and prospects. However, the online gambling industry continues to thrive despite the pandemic, and it is expected that in 2021, certain specific industry trends will become more noticeable.
Figures and Reasons for the Popularity of Gambling
The gambling industry constantly evolves, and online casinos are more popular than ever. Statistical data shows that the share of online gaming in the global gaming market has increased yearly from 2012 to 2020. In 2012, online gambling accounted for 8% of the worldwide gambling market, and by 2020, this share had already increased to 14%.
- In 2017, the size of the online gambling market was $45.8 billion;
- By 2024, it is expected to grow to $94.4 billion.
But what makes online gambling so attractive?
- Many players believe online sites provide a better user experience than land-based platforms. They receive higher bonuses at a lower cost.
- For many, online sites are a better choice than land-based casinos because they allow users to place bets in real time, regardless of time or location. They can use gambling sites from their homes without spending money on trips to casinos, food, and drinks.
- Players seeking gradual changes and consistent bonus winnings are attracted to the numerous jackpot opportunities online gambling sites offer.
- Thanks to the technological progress in recent years, it is expected that the industry will expand its scale. The gaming industry is now ready to face some challenges: larger operators will restructure and adapt to new trends, gaining a larger market share, while smaller operators may suffer.
The pandemic catalyzes specific industry trends in online casinos and is expected to become more noticeable this year.
Internet Gambling Trends in 2021
So, what are the main trends in online gambling in 2021?
Mobile Casino Games
You can say that mobile gambling games are no longer rare. Nowadays, smartphones are indispensable in the lives of modern people, and more and more people prefer mobile phones as a means of entertainment. Yes, that's true. Thanks to the convenience of mobile devices, many players now prefer them over computers.
However, until recently, gambling providers had no particular reason to focus on such players because smartphone technologies were not as advanced as now.
- In 2019, the number of smartphone users worldwide reached 3 billion, and according to analysts, this number is steadily increasing by approximately 270 million people per year.
- Furthermore, some studies have shown that approximately $92.1 billion was spent on gaming apps in 2019, which is expected to increase to $106 billion by 2021.
The expected increase in new smartphone owners by 2021 leads analysts to believe that mobile gambling games will become even more popular. This trend has been confirmed in recent weeks, considering the current crisis and the related global restrictions.
Moreover, almost half of the world's population still does not own smartphones, so the future increase in the use of mobile devices is likely to lead to a rise in mobile gaming as well. The number of smartphone owners and users is expected to grow steadily in the foreseeable future, and online gambling is undoubtedly one of the industries that will benefit from this increase.
With that said, mobile gambling applications will also improve. Online casino, sports betting, and poker websites are making great strides in graphics and navigation for mobile device users. The gaming industry will continue to enhance the gaming experience and strive for complete optimization of its offerings. Many experts claim that online gambling sites will pay increasing attention to attracting players to their mobile applications in the coming years.
According to various estimates, in 2020, 50% of smartphone users engaged in mobile gaming, which significantly increased due to restrictions imposed on land-based casinos. Thanks to the implemented measures to combat the pandemic, more and more players believe online betting is more convenient and safer.
Most likely, even when quarantine measures begin to ease, and physical casinos resume regular operation, casino attendance won't see an immediate resurgence. This is also why many physical casinos have started expanding their online businesses – they understand that the position of online casinos in the gaming industry will be more stable.
Cryptocurrency in Online Casinos
Again, You can say this is not news for the casino industry. However, despite the convenience and security, online gambling takes time to adapt to cryptocurrency payments. While this trend has slowly changed over the past few years, more online casinos are expected to accept cryptocurrencies this year.
Partly, the initial hesitation of the online industry regarding cryptocurrencies may be related to players' uncertainty about the new payment method. However, the industry has no reason to hesitate now that cryptocurrencies have been around for a while, and the number of online players using them continues to grow.
In the end, it can be said that cryptocurrencies with anonymity and security features are on the players' side. There are even some bonus offers provided by casinos that are exclusive to cryptocurrency players.
In recent years, the use of cryptocurrency in gambling has significantly expanded. Starting from a few platforms solely using encryption, it is now creating a revolution in the online gambling industry. Even traditional online casino platforms have started supporting encrypted payment options in addition to legal deposits and withdrawals.
According to the Bitcoin Casino Stats 2020 report, there are currently 227 online casinos operating with cryptocurrencies, and 25.7% of players use bitcoins for transactions.
The increasing use of cryptocurrencies in gambling is related to the advantages these digital currencies offer compared to traditional commerce.
Compared to fiat currencies, cryptocurrencies are:
- Easier to use
- Have a broader reach
- Face fewer regulatory obstacles
However, many people still have concerns about using cryptocurrency in gambling, mainly due to the low acceptance and understanding of digital currencies and crypto casinos. But when the next person to use cryptocurrency is the founder of Tesla, Elon Musk, a controversial billionaire and the wealthiest person globally, even skeptics will have to reconsider their views.
On February 9, the world was shaken by the news that Tesla Inc. had bought $1.5 billion worth of Bitcoin. The Bitcoin price reacted to the news by reaching a new all-time high above $48,000, a record level in the history of cryptocurrencies.
"Private investors perceive Tesla's actions as confirmation of the cryptocurrency demand. It is with this that we observe the growth. It is noteworthy that due to the drastic increase in the price of Bitcoin, some exchanges became so overheated that technical failures began to occur in their operations," said Alexander Kvoynitsky, the marketing director of the Chatex cryptocurrency P2P platform.
Such events will lead even the most skeptical individuals to adopt the new payment method and appreciate all its advantages. After all, cryptocurrency is decentralized, and all online transactions do not require any external platform, which is more convenient and faster than other payment methods (e.g., transactions with local banks). Additionally, each cryptocurrency transaction is encrypted, so you can be sure your transaction is secure and almost impossible to hack or destroy.
In conclusion, although most players still do not fully understand how cryptocurrency gaming sites work and generally remain skeptical about the popular cryptocurrency Bitcoin, considering the current global trends, experts expect that crypto casinos will likely conquer the online gambling sphere.
More Competition in Online Gambling
Online casinos must be constantly prepared to face competition; in 2021, new casino sites are expected to grow. What are the reasons?
- Compared to land-based casinos, creating an online casino is much easier.
- The enormous profits in the online gaming industry in 2020 naturally attract more investment companies.
- As the epidemic is expected to weaken this year, various industries have resumed their activities, economic activity is gradually recovering, and more people previously limited in finances will start playing gambling again.
Strict Regulations in Mature Markets
Online gambling has tremendous potential and will likely become the main direction of the industry's development shortly. However, its vast capital flow needs to be formalized and managed, so many countries are enacting laws to regulate the profitable online gambling industry.
It is expected that the UK Gambling Commission (UKGC) will make amendments to licensing conditions and codes of practice. This relates to the design of online games and their interaction with players. The revision of the 2005 Gambling Act will impose strict restrictions on sponsorship and advertising by gambling operators.
Technology companies will have significant opportunities to assist operators in implementing new conditions and operating rules.
Focus on New Markets
Strict regulations in the European market will compel gambling operators to shift their focus to new markets, such as the United States and Latin America. While Joe Biden pays little attention to the iGaming industry, some of his statements suggest that the situation in online gambling will be more favorable than it was under Trump.
Moreover, federal sports betting rules are more stable for operators than those in different states.
Retaining New Players
Operators will allocate more resources to retain new players attracted during the quarantine period. It is expected that after vaccination, restrictions will be eased, and social interaction will return to normal.
This will enable operators to focus on developing and releasing new high-quality games with social networking features.
Streaming Growth
Streaming platforms are expected to experience significant growth in 2021. Platforms like Twitch have become popular in streaming multimedia because people can earn money by playing video games and interacting with other players and their fans. Streaming multimedia provides a much-needed level of communication between players and fans.
Mobile streaming, which is currently underdeveloped, is expected to continue growing this year.
Innovations in Game Monetization
Recently, the way we consume multimedia has radically changed. We no longer buy DVDs to watch movies but opt for subscriptions to online cinemas like Netflix. This innovative approach will be implemented by major gaming companies as well. They will no longer sell game consoles or individual games.
Still, they will profit from their games through in-game purchases or by offering players the opportunity to pay for higher-level gaming experiences.
Conclusion
The pandemic may have forced some people to save money, but it has shown many potential players the advantages of online gaming. This will significantly impact online casinos in 2021, as the number of online gambling enthusiasts grew even before restrictions were imposed. It is evident that we are witnessing a rising trend, and by the end of next year, the online gambling industry will thrive more than ever.