For most of us, the iGaming industry is only a source of entertainment, joy, and a continuous stream of digital products, games, virtual reality, and, why not, winning potential? Actually, we would love to get more in-depth with the last one and talk about how resilient this niche is and how forward-thinking the approach must be to transform an iGaming product into a scalable business.
So, we will do nothing but take a look at some projections for the following years and talk about how successful this business really is and why it may be a smart thing to become a long-term investor and put your money in the most rapidly expanding industry.
Unpacking The Growth of Casino-Related Products
The talented analysts at Statista came up with a very interesting projection regarding the casino games global revenue covering the entire period from 2022 to 2029.
In 2022, the total casino game market reached US$ 8,50bn. The projection shows that at an annual growth rate of 6.37%, we expect to see a total revenue of US$14,76bn by 2029. In these rough times with the economic crisis hitting all the major economies in the world, the casino games market almost doubles its revenue in not less than 7 years.
An interesting, yet not surprising, aspect is that in 2022, the total in-app purchase(IAP) revenue in this industry reached US$5,84bn, which is more than half of the total revenue. Obviously, we are not surprised about that, and we are confident that in the future, the IAP indicator will represent a far larger percentage of the total revenue.
Statista also calculated that from the total of US$8,50bn, US$4,990.00m comes only from the United States. So, keep your eyes on the American market if you want to be the first one to try those innovative digital casino products and games.
Factors That Favor This Undeniable Growth
As you can probably imagine, there are various reasons that favor this aggressive growth. We will list some of the most tangible ones, and we promise you will immediately make the connections yourself.
● Technology innovation and integration: As long as tech companies will continue to do what they know best, the iGaming industry will flourish. That’s because digital gaming companies are aware of how important it is for them to keep innovating their products. Look at blockchain, VR, AI, and gamification trends.
All of them are compatible with casino games, and their integration only leads to more immersive digital games, gamified systems, impenetrable security for payments, and so much more.
● Legalization: Each country that regulates online gambling is a new door that opens for the casino game actors to spread their operations to a bigger scale. As we can see, more and more countries are becoming aware of how much revenue iGaming can generate.
● Mobile products: Most likely, the biggest reason why this industry is thriving is mobile compatibility and the impact of smartphones nowadays. You have access to the whole world just by reaching into your pocket, and digital casino games are definitely a branch you should explore.
iGaming Revenue Streams
Like any other successful business model, it gives you the chance to take advantage of a multitude of income streams. The more you unlock and focus on, the more you will witness what real success really tastes like.
At first glance, iGaming and casino games seem to have only one stream of player-based revenue, but the following list will definitely give you a different perspective on that. Remember that owning a classic online casino is not the only business model you can adopt in this industry.
● Affiliate marketing: slotscalendar.com is a great example of how a business can prosper in this niche. They are in permanent contact with casino operators, developers, and all the major actors in the industry, but they focus on promoting the best products, creating useful content, and generating revenue through their recommendations. It is important to mention that most affiliates do not even offer betting services on their platforms.
● Player bets: The classic source of income is player activity. The more time and money they spend on a platform, the more revenue a classic digital casino will generate.
● Advertising and product promotion: The more traffic you manage to get, the more you can transform it into an income stream by promoting additional products to your users. It is true that this mechanic will work best for affiliates, but we have seen casinos doing it by partnering with car brands, tech brands, or even aerospace manufacturers.
● Subscription-based products: Big operators and actors would launch premium features based on loyalty levels, VIP rooms, and games that certain players can only unlock by paying an extra fee in the form of a subscription.
How Casino Platforms Remain Resilient
Having such constant and impressive growth in the most difficult economic scenario can only translate to a peculiar ability to remain resilient. So, how do casinos manage to be resilient in such harsh conditions?
● Accessible at any point: Casino games are the type of product that anyone can afford at any point. If you are willing to gamble your three dollars, you can do that inside the casino. No matter how harsh your economic status is, you can just go and perform five spins and leave. The level of accessibility is huge.
● Extreme diversity: One thing we love about the iGaming industry is its capability of constantly offering something new. A big part of that happens thanks to how fast this industry becomes globally accessible. Players from countries where betting is forbidden can easily access online casinos that legally function in other states.
● Easy, fun, and appealing: let’s be honest, casino games are easy to find, do not require technical knowledge or installation, and you can escape for a few hours, even in these rough times.
Conclusion
To conclude this article, the iGaming niche has several revenue streams, is extremely resilient, and is accessible to everyone in the world who owns a smartphone. With such a large audience and growth potential, becoming an entrepreneur or investor in this industry can turn out to be a good decision.
It is worth the shot.
