In recent years, the casino and gambling industry has successfully branched out on the internet. This unprecedented move was triggered by the onslaught of the coronavirus pandemic of 2019. Although the online gambling industry existed previous to the pandemic, its full-fledged growth was due to the covid situation. Due to constant technological developments, the global gaming and gambling industry faces multiple challenges on its path to improvement.
In this article, we shall discuss the future troubles that are to be faced by the iGaming industry.
What Is the iGaming Industry?
iGaming popularly refers to any sort of online game that is associated with betting, gambling, or casinos. The iGaming industry is highly dynamic and is expected to reach new heights in the near future. iGaming includes betting online on the outcome of a certain event.
However, the iGaming industry is not just limited to that. It extends beyond just betting; the iGaming industry is an umbrella term for all the online casino and gambling-related activities. iGaming is far more accessible and cheaper than brick and cement casinos, making it a more favourable choice amongst gambling enthusiasts.
A Look Inside the History of iGaming Industry
iGaming has been there since the mid-1990s, but it has now gained added visibility due to the recent hype. Here’s a chronological display of how the industry progressed:
- The concept of iGaming came to fruition in the year 1994, when Microgaming developed the world’s first iGaming website.
- By the year 1998, Microgaming developers collaborated to create a video jackpot slot called the CashSplash. This year we also witnessed the launch of the world’s first online poker room by the company PlanetPoker.
- From here on, the iGaming industry developed rapidly, with more than 700+ casinos offering online gaming services.
- iGaming became increasingly popular, and multiple countries embraced it gladly because of the economic benefits.
- In the year 2000, the iGaming industry gained over 8 million customers, and the net revenue generated by the industry is around 2 billion dollars.
- In the year 2010, online casinos were successfully compatible with mobile phones. This was considered to be a new milestone in the journey of the iGaming industry.
- The revenue from online casinos reached approximately 10 billion dollars after they became accessible via mobile phones.
iGaming in Various Countries
According to studies conducted by the United Kingdom, around 17% of the worldwide population has partaken in online gambling. This is quite visible if we see the 2018 annual revenue gathered by the US online gambling market. In the year 2018, the US online gambling market accumulated around 306.5 billion dollars.
On a personal scale, here’s how much money would be spent by people from different countries on online casinos.
|Nationality||Annual expenditure on casino|
|Australian||$916 per person|
|Singaporeans||$891.16 per person|
|Americans||$505.44 per person|
|The UK||$377.83 per person|
Seven Key Challenges Hindering the iGaming Industry
The iGaming industry also faces some noticeable hurdles in its path to development. From here on, we shall discuss some of the main challenges that hinder the growth of the iGaming industry in the year 2020.
With all the hype surrounding the iGaming industry, it is still not legal in some countries. It is 2020, but the prejudice surrounding gambling and casinos has not been done away with completely. A lot of countries like Israel still consider gambling as a morally corrupt activity and hence bans any iGaming site within their legal borders. This makes it significantly difficult for the industry to flourish.
The New Generation
With the availability of new, exciting, and high spec video games, it seems that the millennials are not interested in the iGaming industry. It becomes difficult for any industry to thrive if it cannot appeal to the newer generations. The millennials are a hurdle that the iGaming industry would have to overcome to survive in the near future.
The advent of digital cryptocurrency has attracted a lot of individuals. Cryptocurrency has been welcomed into society; however, not so much by the online casinos. Due to security and transparency issues, UKGC does not encourage the use of cryptocurrency for gambling, making it difficult for multiple customers who wish to choose it as a mode of payment.
The iGaming industry has been booming with success in the last few years. This has also led to the creation of multiple online casino sites and various slot games. The market is saturated to the brim and lacks excitement. However, some of the games, such as Treasures of Egypt slots, have always been immensely popular.
As online casinos are more accessible, there is also a critical rise in gambling addiction. The responsible gambling tools can only help up to an extent. This also re-establishes all the prejudices surrounding gambling and its effects.
Video Games and eSports
Game developers have created wonderful video games that attract all the possible gambling enthusiasts away from the iGaming industry. This is another important hurdle that the iGaming industry has to overcome.
Lack of Time
Another noteworthy reason for the rise of online gambling was the pandemic. The pandemic situation created a huge void in the lives of people. Online gambling was a form of entertainment that gave people a sense of fulfilment. However, once the pandemic is over, the return to their normal lives would take away the time from online gambling.
Currently, the gambling market is at its peak of popularity. Gambling enthusiasts and online casino owners are profiting majorly from the rise of the gambling culture worldwide. However, good times don’t last forever.
The challenges mentioned in this article are the most important hurdles to be faced by the iGaming industry in the year 2020. The gambling and iGaming industry should prepare itself for the inevitable challenges of the future.