The Future of the Online Casino Economy

The Future of the Online Casino Economy

Sure, making a wager online is one way to have fun and entertain yourself. But for others, online games are part of a billion dollar industry that has brought them prosperity and has exploded in recent years. While most individual players are just trying to have fun behind their mobile or desktop device, online operators continue to earn billions and tax offices can’t wait for the annual income taxes to be reported. Today, the online casino industry represents a complete economy and it is expected to gain importance in the future.

A lot of players might not think about how the little things that we consume impacts the world around us, but business analytics, tax offices, and operators surely do. According to most recent reports on the gambling sector, the industry has reported a growth of 5,9% in 2020, which equals around $565 billion in revenue globally. Let’s now look at what the future of the online gambling industry has to bring as it’s far from reaching its full potential.

Casinos have always been a fruitful business

In a time when the definitions “online casino”, “internet casino” or “iGaming” even existed, the casino sector was already a source of a relatively large amount of revenue for the treasury departments around the world. Now that consumers have the possibility of playing in the comfort of their homes, the increase in revenue flowing into the economies of countries that have legalised the online gambling sector have been significant as well. Whether it’s a table game, slot, or bingo room you’re after, the online niche is very likely to have something available (browse around these options) to meet your needs in an online setting. And if you don’t find what you are looking for in one online casino, you can easily move on to the next and keep on looking. The benefits of running online businesses are clear for entrepreneurs as well as there it’s a lot less risky to operate an online casino than there is to run a brick and mortar venue. Investments tend to be a lot lower since operators won’t have to think of renting a property, paying for electricity, buying game equipment, or even having to contract a large staff. A lower amount of financial burden also means that online operators will have less chance of collapsing when times get really tough.

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Malta’s importance to online casino

Being able to copy one business model and pasting it on another website also explains why there are so many casinos opening up and why the business has never stopped growing ever since the first casinos became available. A big portion of these casinos are based in Europe with licences issued by authorities like the the UK Gambling Commission (UKGC), the Gibraltar Betting and Gaming Association, and the Malta Gaming Authority (MGA) being responsible for a lot of permissions to offer online gaming services to players around the world. Malta’s economy heavily depends on the online casino economy as it was the first nation in Europe to legalise online casinos and found an authority issuing licences. The total Gross Value Added generated by the gaming industry in Malta during 2020 is believed to be at €924 million, representing around 8% of the economy’s total.

Global growth largely thanks to Europe

Global growth is in fact largely thanks to European activities. The European iGaming industry is worth about $53 billion. Analysts believe that the industry is expected to see a growth rate of around 11,5% annually until 2026, which means that in 4 years the industry’s worth will stand at $100 billion. This is the revenue that is brought in by legal companies and thus reaches governmental institutions. In some countries players are taxed as well, which means that online users contribute to the industry’s growth in multiple ways. Given technological advances and the increasing mobile availability of online gaming sites, as well as more and more people getting used to consuming their favourite games at home rather than venturing out into public to make a wager, the online casino industry’s growth isn’t expected to slow down any time soon.

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Online casinos continue gaining importance

At the same time, casinos all over the world have reopened their doors after months and even years of uncertainty. This has led to a lot of players finding themselves behind their favourite slot machines again, but not all regular visitors have found their way back to brick and mortar venues. Although countries and thus casinos are loosening up their corona restrictions, there are still a lot of casinos that apply corona measures which haven’t been very popular among visitors. Some gamblers also find that the expenses made at offline venues are way too high in comparison with their online counterparts and have discovered the ease of playing online slots or turning to a live dealer table instead of a physical one.

But not only online casinos do good business. Online sportsbooks have seen the same thing as people were forced to watch their sports games at home instead of heading to the stadium or to a pub. In order to still find the same level of excitement, a lot of players found their thrills in online sports betting and it’s hard to blame them as adverts are everywhere.

Full potential not yet reached

Not only are there more visitors in online casinos, but the average spending per visitor has also increased in recent months. Some would explain that people save a lot of money as they don’t have to visit a brick and mortar venue anymore and expect that people will continue to play online as the number of options is becoming bigger. The online gambling industry has not reached its full potential yet and this is mainly because a lot of countries outside of Europe have just legalised online gambling, are in the process of doing so, or might just be considering it which will be very much welcomed by most, with clearly the only risk being problem behaviour and the number of gambling addictions to grow. But, overall, online gambling’s contribution to the world’s economy is a very positive one.

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Ayhan Fletcher

"Subtly charming zombie nerd. Infuriatingly humble thinker. Twitter enthusiast. Hardcore web junkie."

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