The iGaming industry has grown at a pace. It presents a lot of opportunities for investors. We discuss them in the article below.
There are very few sectors overlooked in the world of investment. Yet the online gambling sector is one. It may be because, across the globe, laws and legislations pertaining to it are patchy. Yet over the last few years, new markets have emerged. As mobile connectivity has increased, it has catapulted profits.
What is iGaming?
The term iGaming has been coined to encompass any sort of online gambling activity in which you can win money. While most people view this as casino games, such as poker, blackjack, and online slots, it also has many other facets. Bingo, lotteries, and crash gaming may also fall under the iGaming umbrella.
If you are not sure just how big the iGaming sector is, the facts can help you understand it a little. Its current estimated value is $85.62 billion across the globe. This rose to $97 billion in 2024. In the US, many states, such as New Jersey, have just posted record first quarters for online casinos and sportsbooks.
Added to that is the aftermarket industry that has grown up around this. It can range from social media influencers who give hints and strategies on games, all the way to websites that rank operators. These reviewers have been integral to the improvements in real money casinos. In a competitive marketplace, they have offered feedback to both operators and clients on bonuses, transparency, and customer service.
The Potential in the iGaming Industry
The iGaming industry now has better regulatory oversight than before. This has not always been the case. There has been backwards and forward action from many states regarding the best way to handle the rise of online gambling. Yet as a new industry, as more data and case studies come into being, it becomes easier to get this balance right. Even states like Poland, which have a state monopoly and have operated in a grey area of legislation, are now under pressure to seek reforms and utilise the tax benefits of iGaming.
As regulatory changes come, so do the opportunities for collaboration. This has worked extremely well in the US, where iGaming companies have teamed up with sports stars and major leagues to enhance their offerings. While some jurisdictions are vehemently against this form of advertising, it does show the potential of different markets.
As a new industry, the iGaming sector is also not just monopolized by a few larger companies. All you need to get started is a platform, a license, and some good marketing. This means it is fresh, exciting, and still provides investors with the chance to fund start-ups that may balloon into something big. This does mean that the risk of failure is quite high, so you must weigh up your level of risk and reward tolerance.
International expansion is also very easy. Once a platform is up and running, it takes very little to replicate that service for those in a different country.
Finally, the rise in gambling is not something that has simply come out of nowhere. The gambling industry is something that has been around and has been lucrative for many years. The iGaming sector has been quietly growing in the background for some time. However, with the rise in mobile technology and connectivity, its potential has been unlocked. It is now able to rival entertainment forms such as online gaming or video streaming.
What to Consider Before Investing in iGaming
The first consideration to make before investing is the regulatory framework. For example, if you are investing in an emerging iGaming market, knowing current laws and possible changes can help a lot. You may be able to pick out future opportunities or spot difficulties in the growth of the sector.
Make sure you dip into the ethos, attitude, and plans of any company you are investing in. While there is plenty of room for growth, the iGaming sector is saturated. That is easy to see in the number of casinos online. What makes your company better than its rivals?
Finally, look at how they embrace technology. There are many gambling sites that load up the same slots and table games as others. However, those at the forefront of innovation reap the rewards. This was seen in the recent addition of crash gaming to many online casinos. Originally only available at crypto sites, its popularity was adopted by the best casinos hungry for new products.
If you are looking to diversify your portfolio, then iGaming must be considered. It does have drawbacks, such as a crowded marketplace. Yet it is growing and will continue to as more countries develop and get connected. Take a gamble, and you may just invest in the next big thing.