As one of the fastest growing sectors, the iGaming sector has showed remarkable resilience, despite all the economic turmoil and uncertainty of the last few years.
Indeed, if the latest figures are anything to go by, the iGaming sector has experienced staggering levels of growth, all things considered. And from an estimated valuation of around $173bn in 2021, the iGaming sector is expected by some analysts to reach more than double that by 2027!
Even judged by a more conservative report, which offers a less optimistic estimated value of $61.5bn in 2021 and an expected value of $114.4bn in 2028, the signs within the industry are all positive.
This meteoric growth has been fueled by a number of recent trends, although the rise of online trading and betting has been under way for quite some time. Some of these factors include a more relaxed regulatory environment in many parts of the world, the increasing availability and affordability of powerful mobile devices, and even the restrictions imposed during the Covid-19 pandemic forcing in-person trading activities online.
Although the direct causes of this growth might have many different sources, the results are broadly the same: the iGaming sector is booming!
With this trend in mind, there has never been a better time to invest in the iGaming sector. And if we get anywhere near the industry predictions, you could see a significant return on any investment you make, by the end of the decade.
If you are one of the many individuals thinking about investing in the iGaming sector, however, what should you know before committing any cash?
Regional variation
An immediate factor to consider before investing in the iGaming sector relates to regional differences.
Although Europe largely dominated the iGaming market up to 2015, this has shifted in recent years. Now, some of the biggest emerging markets are to be found in North America, with America and Canada experiencing significant growth in the last few years.Â
America, in particular, has proved to be a key emerging market in the iGaming sector, as decades-old restrictions on gambling have slowly been dismantled by state governments across the country. As a result, there has been a significant increase in demand for a managed service provider in the iGaming industry.
Similarly, many countries in the Asia-Pacific region have experienced considerable growth in recent years. This has been brought about by a combination of rising incomes and easing of restrictions on gambling.
Market segmentation
Another important factor you should consider before investing in the online trading sector is market segmentation.
The online trading sector is divided by a number of verticals, which include the type of game and betting as well as the device and software used. For example, iGaming consists of a number of different trading activities, such as sports betting, online poker, slots, bingo and more.Â
With these markets and segmentations in mind, it is important to consider the different verticals the iGaming sector encompasses and where your targeted investment fits within this.
Each vertical will have its own market dynamics you should be aware of, so be sure to keep them in mind when appraising any potential investment opportunity.
Technological synergies
Growth in the online iGaming sector has a close relationship with other technological innovations that have allowed iGaming platforms to offer a wide variety of services, in addition to being safer and more secure.
With that said, an important factor to consider when you are looking at the sector for investment opportunities is to think about what technological innovations may lie on the horizon, and how these might improve the iGaming sector.
For example, the rise of cryptocurrencies has helped to trigger a wave of growth in the iGaming sector, given how closely the two sectors align.
As such, it is a good idea to look at various new technologies and to think about how they might be implemented on iGaming platforms. This will give you a sense of the direction in which the sector might grow.
Moving forward
As we have seen, the iGaming industry has experienced meteoric growth in recent years, with the signs all looking good for the years to come. And despite the fact that the sector as a whole is becoming increasingly competitive and we can expect to see some marketplace consolidation in the near future, the ingredients are all there for us to continue seeing positive growth.
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
