What’s Driving Growth in the iGaming Industry—Expected CAGR of 11.5%

The iGaming industry, the powerhouse of entertainment, remains one of the fastest-growing sectors ever recorded. Back in 2020, online gambling was recorded to be making $66.7 billion in revenue, and just when everyone thought it wouldn’t go much further, it was projected to hit $92.9 billion by 2023 and $123.5 billion by 2026.

There is a projection of 11.5% compound annual growth rate (CAGR) from 2021 to 2028, and these numbers just seem so surprising. What is the driving force behind this fast-paced growth of the iGaming industry? How is it that more than 25% of the global population engages in some form of online gambling? We’ll break it down for you.

The Surge of Mobile iGaming

At this point, it is impossible to deny how much mobile devices contribute to the progress of the iGaming sector. As it stands, up to 75% of online gamblers would rather use their mobile device for all gambling-related activities. In fact, more than half of this percentage have never opened up gambling websites on a desktop computer.

To that effect, mobile gaming contributes more than 50% of the total annual global gaming revenue, and these numbers are projected to rise even more as devices gain improved technology. 

The mobile gambling market has a projected CAGR of 19.9% from 2021 to 2028, so, giving credit where it is due, the industry wouldn’t be making as much money if it weren’t for mobile devices. 

It makes us wonder what the mobile sector offers that appeals so much to gamblers. Well, we did some research, and it wasn’t difficult to find some contributing factors. Let’s have a quick look at them

• Flexibility With Time and Location: This is arguably the most dominant factor, and it is something desktop computers can’t offer. With mobile devices, gamblers have access anytime and anywhere. 

• Convenience: Not having to sit in front of a big screen is just more convenient. Irrespective of what you’re doing, you can always sneak in a gaming session to ease your stress.

• Mobile Bonuses: Online casinos and sportsbooks have also introduced the idea of mobile bonuses, and it is working out very well. Want some bonuses? No problem, just download the brand app, and you’ll get a reward.

These are only a few benefits of gambling on the go. However, we must also mention that to stay ahead in the mobile gaming surge, you must know which platforms offer the best experience. Luckily, with sites like CasinoSherlock that review the top mobile-friendly online casinos, you can easily find reputable and engaging sites.

Demography Dynamics

As for demography, the average age of an online gambler is 34 years old. It is said that at this age, you most likely have a source of income but at the same time, you still believe in luck. Besides, who doesn’t have a mobile phone at this age? 

Breaking it down even further, the male-to-female ratio for online gamblers is around 3:1. So, unsurprisingly, males are more prominent in gambling than females.

Given these numbers, the average young tech-inclined adult probably engages in online gambling more than you think.

Expanding On Market Segments

The beauty of the online gambling market is that it has several subdivisions—some may even argue that it is a little too much. We don’t see it that way, and we believe it is one reason for the growth we see today. This is because each subdivision appeals to different audiences, so in every case, everyone’s a winner—you’re sure to find what you like.

For example, the esports sector would appeal more to the younger generation than the older. And in itself, esports betting is growing wings. In fact, it is estimated to reach up to $120 billion in market value by 2025.

On the other hand, we have the most popular form of gambling—traditional online sports betting. It accounts for up to 40% of the market share, so you can imagine how much it will contribute to revenue.

As for individual gaming representation in the markets, casino games account for 41% of the market. And it will surprise you to hear that a significant number of gamblers—more than 30%—prefer live dealer games over their traditional gaming counterparts.

We also have markets like online poker with a projected CAGR of 13.2% growth from 2021 to 2028. This comes as no surprise to us since online poker represents up to 18% of the global gambling market in general.

Technological Advancements

With technological advancements, we are seeing new subdivisions emerging in the industry. Now, we are seeing virtual reality (VR) infused with live casinos. This brings a new and realistic form of entertainment, and it is growing fast. As it stands, VR gambling is projected to have a market value of $4.6 billion as soon as 2027.

We also have new innovations in payment solutions with the advent of cryptocurrency, which makes up to 7% of transactions related to online gambling. This also comes as no surprise to us considering the benefit that crypto brings to the table. Apart from the anonymity, it is faster and easier to use. No need to wait five working days when Bitcoin withdrawals take only a few hours.

For regions with tight gambling laws, we are seeing the emergence of social casinos, which have surprisingly gained traction. As it stands, they have a projected market value of $6.7 billion by 2027.

Regulatory Landscape and Regional Growth

The United Kingdom (UK) retains its position as having the largest regulated online gambling market in the world. That is why we have the United Kingdom Gambling Commission (UKGC) as one of the top regulatory bodies in and out of the UK.

Regionally, Asia-Pacific accounts for 32% of the global gambling revenue, so it takes the crown as the largest market for online gambling. It’s also recorded the fastest growth in terms of online gambling revenue. So, don’t be surprised if it becomes a tug of war with the UK for the largest regulated market in the future.

Bright Future Amidst Challenges

We have yet to see the best of iGaming, and we believe the next few years are going to be pivotal for the industry. So far, the industry has been able to position itself and easily integrate with the latest technological innovations; it should continue to grow at this rapid pace.

At the same time, don’t assume that this sector as a whole has it easy. On the one hand, we see increasing tussle with regulatory bodies for certain regions. On the other hand, certain individuals refuse to open up to the potential that iGaming offers as a whole. Either way, one thing is certain—progress is inevitable.