The iGaming industry is on a global tear, and for advertisers, it presents a massive opportunity. The market on the rise: The global iGaming market is projected to hit a staggering $107.3 billion by year’s end, according to Statista. That’s a massive pool of potential customers for your brand.
The number of players is also impressive: The number of global iGaming enthusiasts is expected to reach a whopping 593 million in 2024, up from 454 million in 2017. This rapidly growing audience offers immense targeting potential.
The igaming industry have welcomed the ‘mobile fisrt’ approach: With the rise of 5G and powerful smartphones, mobile gaming is booming. A significant portion of those 593 million players will access games through their phones, making mobile ad placements a prime target zone.
Still not convinced? Check this out: Industry analysts predict significant growth in iGaming ad spend, potentially exceeding $12 billion globally in 2024. Want to be a part of this thriving industry? Keep reading!
What is iGaming?
I’m sure you’ve heard terms like Sports Betting, Internet Gambling, and others used interchangeably with ‘iGaming’. If you’re confused, you’re not the only one. 😉
iGaming is an umbrella term for a wide range of online activities.
While it’s understandable that the name might easily bring video games to mind – there’s a difference between Gaming and iGaming, no matter how many contradictory definitions there are out there.
In reality, iGaming is an extremely popular and extensively broad part of the online entertainment industry. Simply speaking, the name iGaming refers to online betting, like sports betting, online casino gambling, and other skill-based games like poker or blackjack. Or to make it simpler all kinds of wagering over an Internet connection fall under what we call iGaming.
Anything related to odds, and with gambling elements falls under iGaming. Gaming, on the other hand, relates to video games, gamification and the building of casual games. Don’t worry if you ever got them confused (I know I did), but not anymore.
Regulations to know
The legality of iGaming is a complicated issue. It’s a constant back and forth between legislators, to what extent to make it legal and which activities to ban.
A good example of that is comparing laws in the UK and the US. In America, online gambling has been made “not illegal” in 2011. After the Supreme Court ruled that the Wire Act doesn’t apply to online gambling and it’s up to each state to decide. Sports betting, on the other hand, has only been allowed in certain states as of 2018. In the meantime, in England, gambling’s been legal since 1960 with laws revamped in 2005. These laws regulate online sports betting, casinos, and poker sites.Permitting almost all kinds of gambling for those over 18 and some forms (like lotteries) for those over 16.
Please also remember that sports betting laws are not the same as online gambling laws. In some cases, one is legal while the latter is highly regulated. Like in Australia and Canada where sports betting is generally allowed. But online gambling services need special licenses provided by local governments and can only offer a limited number of games.
Why is it important? Before launching a set of ads make sure you’re not getting into any trouble in the given geo. Remember those regulations can also get you banned.
Always check what are the rules you need to comply with for your geo, as well as your ad network. For additional details, you can check out our guide on Gambling regulations in the US. It tells you each set of laws, state by state!
The growth potion
We’re dealing with a huge vertical that is growing in strength with each person joining the ranks of online entertainment. In fact, the pace is out-of-this-world considering that just a year ago, the industry was worth about $100B less than it is now. Asking – or more importantly answering – the question of how it managed to get so big, opens the door to understanding how to make profits off of iGaming’s strengths.
Technological advance
iGaming is highly innovative and never sleeps; it has grown into a multibillion-dollar industry by leveraging new technologies like virtual reality and machine learning. Every advance plays into the industry’s strength.
Cloud-based technology? Operators utilize cloud computing technologies to manage and store player information while also increasing operating efficiency.
Augmented reality? Players can experience the real atmosphere of the game and feel like they’re actually in a casino.
The same goes for advances in graphics that make games simply more appealing. Every step forward technology takes, iGaming is along for the ride.
Evolution of mobile gambling
The transition from land casinos to mobile gambling is a big part of the process. What helps with making it successful is the fact that more people than ever own Internet-compatible mobile devices and the prospect of having a large variety of games in your pocket is as addictive as it is tempting.
An average American spends about 2 hours 54 minutes on their smartphone and over half of the people in the US admit they couldn’t go more than 24 hours without a phone. Propelling the transition from in-person to mobile gambling along. It’s fair to say that we are addicted to our mobile phones. The same goes for gambling on them.
Mobile phones remain the dominant device for online gambling, with almost half of gamblers admitting to doing so on their smartphones. There’s an age skew though, with three-quarters of 18 – 34-year-old online gamblers using their smartphones to gamble, compared to only 14% of those aged 65 and over. The data also shows that online gamblers aged 18-34 tend to use a wider range of different devices for gambling like laptops and tablets as well.
Blockchain
Blockchain technology made the process of organizing virtual events like tournaments much easier. By providing the ability to track and verify who has received the rewards for their matches or competition wins, blockchain removed the need for multiple resources for managing teams and prize pools, and event venues.
Blockchain’s added advantage is offering secure transactions among users. It can also automatically track data from any network where it is implemented.
Home sweet home
Finally, another factor that can’t be overlooked as to why iGaming grew to gigantic sizes is how convenient it is. Just think about it: thanks to modern technology all kinds of games are available to you anywhere, at any time. Gaming while commuting to work? Check. Placing a bet while waiting for a late friend? Check.
The recent experience of lockdown during the pandemic must’ve had quite a bit to do with the shift of perspective. Once we were forced to stay within the bounds of our own four walls, discovering the perks of at-home entertainment was just a matter of time. Again, why buy a ticket or get properly dressed to go to a casino if you can do the same thing from the comfort of your couch? Yeah, I thought so.
Four in five gamblers admit that they mostly engage in gambling from the comfort of their own home.
Sweet online gambling industry statistics
As one of the largest segments of entertainment, iGaming’s been subject to many tests and case studies. So there’s a plethora of iGaming statistics online. And with the growing online presence and increased digital literacy, many more people will soon become gamers of some sort. If there’s one trend to take for granted here, it’s the growth of the industry.
And it’s interesting to think about iGaming in numbers, especially in terms of an overview of the recent years.
Online Gamblers: who are they?
All of us probably have a picture of the stereotypical gambler stuck in our minds. But let’s take a closer look at who actually gambles.
It’s quite difficult to estimate how many people actually gamble. Some have done it once, some do it on the regular so most estimates online are quite rough. Some gambling statistics show that around 26% of the world’s population gamble. That means around 1.6 billion people worldwide gamble and 4.2 billion do it at least once a year. When it comes to online gambling, a UK study concludes that 17% of the population gambles online, resulting in £5.3 billion in revenue for the online market alone.
Let’s take a quick look at gambling demographics. If you think most gamblers are represented by middle-aged men playing slots all day long, you’re gonna be surprised to learn that for online gambling, the group is quite young – 70% of online gamblers are between the ages of 18 and 39, with 47% of them aged 20-29. When it comes to how gamblers are represented between the sexes, men are highly over-represented in online gambling; only 17.6% of online gamblers are female, and 82.4% are male.
Gamblers from lower-income households were less likely to gamble than persons with higher incomes. What’s interesting is that lower-income gamblers were more likely to experience gambling problems. Let’s take a look at Canada – 71% of the highest-income households reported gambling in the past year. And only 1% were at moderate to severe risk of experiencing gambling problems. The corresponding figures for those from the lowest-income households were: 54% admitted to gambling and 3% were at a higher risk of gambling-related issues. The reason for that is quite easy to explain: lower-income households have smaller discretionary incomes meaning money left after bills, mortgages, and essentials.
Strongest GEOs
Something worth keeping in mind while preparing to launch a campaign strong enough to break the bank are the geos that contribute to iGaming’s size.
If your first thought was the US, you’re in the wrong. It’s Asia that’s leading the way. The largest iGaming market is in China with a massive annual revenue of $50.18B generated by the great 742.19M players.
America takes the proud second place on the podium by making $47.62B in revenue from actions taken by 197.16M thrill-seeking gamers. If you still imagined Las Vegas as the gamblers’ dream, well it’s still glamorous, but Makau took over.
The two next slots are taken again by representatives of Asia: Japan and South Korea. The country of cherry blossoms can proudly flaunt a revenue of $22.01B. Still strong – though smaller by half compared to the US – South Korea can also be proud of generating $8.48B.
So, in case you’re wondering which market could offer the best chances the answer is: Asia and the US. Although other places like Germany and Canada are also worth considering.
Most popular games
Just like with all industries, what is popular now will not stay on top forever – that’s for sure. However, keeping a score of what people enjoy playing most is key information that no smart advertiser should overlook.
When it comes to online gambling the most popular games align perfectly with the ones that are most often played in person.
Slots, for example, are high up on the list due to ease of play, game simplicity, or just because it is a very fun game. The most popular online slot games are Starburst – with a probability of a hit at 22% and Mega Moolah which had a payout record of €18B.
Games like poker, blackjack, and roulette are also trending worldwide online just like brick-and-mortar casinos.
Not-so-distant past
2020 was a tough year. Many industries suffered during lockdowns, and many experienced significant losses including brick-and-mortar gambling with global revenue falling by almost $100B.
iGaming experienced the opposite with worldwide revenues rising to almost $60B in 2020, amid Covid-19. Heavy pandemic restrictions took away a lot of opportunities for socializing. That’s probably why so many of us turned to iGaming as a form of entertainment. Back then, casino games were the largest contributors to the industry’s growth. The combination of rising iGaming revenue and falling land-based revenue also meant that the global igaming market jumped almost 17% in 2020.
Within the next year, the iGaming revenue jumped to just over $72B, enjoying another great 12 months of growth. How did that happen? Mostly because the people who joined the niche the previous year stayed for the long haul and newbies joined. Besides, iGaming diversified during 2021 and expanded. Becoming more attractive to a wider audience with markets in South America and Africa continuing to open up.
The gambling industry in 2022 what already was & what is to come
iGaming is here to stay and at this point, no proof is needed to support this claim. Although we have only lived through the first half of the year, a lot already happened in the sector of iGaming. The sheer size of the industry is impressive and iGaming has a huge influence on shaping the entertainment industry. Let me remind you that the iGaming audience is about 3B strong worldwide. With almost 38% of this audience is comprised of people aged 18-34.
There are about two thousand online casinos with the top performers generating more than $10B yearly. The top three on the market include: Flutter Stars Group (worth $5.28 billion), GVC Holdings ( $4 billion), Bet365 ($3.5 billion)
It comes as no surprise that 96% of online gamblers prefer to participate from home, another 55% prefer gambling on their mobile devices with 12% admit that their most liked time to do so is on a commute. Anything to make the daily bus drive more enjoyable.
It’s expected that the global iGaming market will grow to $81.08B in 2022 at a compound annual growth rate (CAGR) of 10.4%.
It’s easy to see that 2022 is another great year for iGaming. If you’re thinking about whether or not to join the wave that is changing the face of online entertainment – look at the numbers again. Who wouldn’t want a chunk?
The future of iGaming
Is anyone going to feel surprised if I say the future of iGaming is shining brighter than ever? I don’t think anyone should be, given how long we’ve been witnessing its undeniable expansion. For instance, sports betting was valued at $72B last year and is predicted to grow up to $140B by 2028 – which indicates a growth rate of over 10.1%. The potential here is endless.
This trend is going to further fuel casinos to evolve, follow consumer habits, and do what it takes to stay ahead of the competition by offering bonuses and promotions. With iGaming’s development, it’s clear that it will start attracting a different demographic. We can already see the younger generations slowly entering the world of online betting with the older guys still staying as involved as before.
So it’ll be quite interesting to see how the industry will deal with combining all the new circumstances. But one thing is for sure – the next generation of social entertainment platforms will be extensively developed and tailor-made to fit the future generation of people while at the same time, keeping veteran customers satisfied.
Apply caution when gambling
For many participating in a poker night is just entertainment for some it’s a part of life they cannot go without.
As many as 10M Americans have a gambling addiction. 1 in every 20 college students meets the criteria for compulsive gambling (gambling despite experiencing its negative consequences)
About two-thirds with compulsive gambling issues report participating in criminal activity related to gambling. About 40% of those gamblers commit crimes only related to gambling.
Like illegal acts to get money for gambling as reported by 80%-90% of Gamblers Anonymous. Or stealing money from work as admitted by 69%.
And 80% of problem gamblers are at a higher risk of developing an alcohol or drug addiction.
Age-wise, compulsive gambling is most common in groups aged 16-24 – approximately 1 in 25 teens has a gambling problem. Ages 45 and up – have been found to have the biggest issue identifying gambling as a problem.
As many as 60% of people reported wanting to seek help but only as little as 25% did so. If you want to know more about gambling addiction and the risks associated, reading this article from the Recovery Village will be useful.
This is obviously not to scare you away but rather to warn. Stay vigilant and look for signs that might indicate an issue. In other words, take care of yourself.
Using gambling as an escape mechanism or seeking it as a mood booster, and experiencing guilt after should be considered red flags. And maybe even signs of developing an addiction. Another thing to look out for is feeling like you need to hide your gambling activities from your loved ones.
If you recognize any of this behavior in yourself it’s time to look closer into your relationship with casinos, online or brick and mortar, and seek help.
Conclusion
iGaming is an aggressively competitive, fast-paced environment, with big, tempting budgets. The buzz is addictive and it would be quite difficult for a savvy marketer to stay empty-handed with this vastness of opportunity stretched in front of them.
So, if you’re currently thinking about possibly starting on your own iGaming business, just think about those huge numbers and remember – they are growing.
Don’t let these huge revenues pass you by and remember there are plenty of great strategies on your side to make the ride smoother. Try them out, and make sure you track and learn from the data.
Also, if you’re looking to place a bet on any advertising software remember:
Voluum always hits the jackpot.
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