Report Predicts Massive Growth For Online Gaming

While online gaming may not have seen the rapid expansion in the U.S. that sports betting has seen in the last few years, forecasters are anticipating massive expansion in revenue from the entire iGaming industry in the coming decade.

A new report from Transparency Market Research estimates the global online gambling and betting market reached a valuation of $62 billion in 2021. The firm now expects the industry to see a compound annual growth rate (CAGR) of 11.5% from 2022 to 2031, climbing to total revenue of $182.2 billion. More gaming options and added technology are key drivers.

“Real-time, in-play betting is gaining traction as bettors seek more dynamic and engaging experiences,” the report notes. “It allows users to place bets during live events, enhancing the excitement and potential rewards. VR (virtual reality) technology is revolutionizing the way people experience online gambling.”

An Innovative Industry

TMR points to the move toward innovation and interactive gaming environments as helping to propel the industry. That includes integrating the use of cryptocurrencies for faster transactions.

Adding social gaming elements has also helped attract a broader audience that has become accustomed to mobile gaming. PokerStars, PartyPoker, and others have moved into more social-style gameplay in the online poker arena as well.

Additional features such as player programs, challenges, and rewards are also keeping users engaged and loyal to individual sites. Tailoring content to specific regions and cultures is also becoming more important for online gaming companies, the report details.

“Offering games, payment methods, and customer support in local languages and currencies enhances user engagement,” TMR reports. “Specialized betting markets, such as politics, entertainment, and virtual sports, are gaining popularity. These markets provide new avenues for bettors to explore.”

Reaching Potential Customers

Acquiring customers and meeting their demands and interests looks to be a growing part of the industry as well. TMR points to advanced data analytics and artificial intelligence in helping operators better understand user preferences, optimizing odds, and preventing fraud.

Augmented reality (AR) technology, integration of digital information with a player’s environment in real time, is also beginning to impact online gambling with enhanced graphics and interactive elements. All these changes and enhancements appear to be good for gaming companies’ bottom lines.

Entertain, the company behind PartyPoker, bwin, Ladbrokes, and BetMGM, reported strong third quarter earnings just this week, according to the Wall Street Journal.

“Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalize on the U.S. opportunity and deliver long-term returns for our shareholders,” the company reported.

Other key findings from the TMR survey include:

• Many online gambling and betting platforms are incorporating live streaming features, enhancing user involvement.
• A shift toward seamless cross-platform accessibility and flexibility, allowing play from smartphones, tablets, and desktops for uninterrupted gameplay and convenience.
• Europe boasts a well-established iGaming market, with strict regulations ensuring consumer protection while fostering growth.
• North America, particularly the U.S., is seeing a transformation in online gambling. Legalization efforts are expanding the market, and Canada also presents significant opportunities.
• Asia-Pacific is a hotbed of online gambling growth, driven by the expanding middle class and mobile penetration. Markets like China and India have potential, but regulatory challenges remain. Macau is also considering online gaming possibilities.

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