The iGaming industry is growing faster and faster and rising income leads to higher social security contributions. Learn how iGaming has become a key driver of global economic growth.
Every year, land-based casinos become less popular as more and more players choose to roll the dice or spin the slot machines online. Although the trend has been growing for a while, it was dramatically accelerated by the covid pandemic, when quarantines and other restrictions reduced land-based casino revenue streams to a trickle. Overall, modern users find online casinos to be more comfortable and convenient than their land-based counterparts, and particularly appreciate the incredible variety of gaming content available.
According to an exclusive report by Acumen Research and Consulting, the size of the online gambling market will reach approximately $172 billion by 2030, growing at an annual CAGR of 11.6% due to the boom in gambling. mobile game. Such dynamics may be due to the increase in the number of operators in different markets, since launching an online casino is much less expensive than opening a land-based gambling establishment. Online gaming platforms don’t need large staff, capital assets and heavy gaming equipment – only quality software. With good budget planning, online casino operators incur low maintenance costs. Therefore, more and more investors are diving into iGaming, and respectively, the market is growing.
Operators have a few tools at their disposal to scale their business. They can integrate new games adapted to the tastes of their target audience, offer bonuses and loyalty programs, develop their marketing activities, etc. Operators who make good use of these tools are often able to run a very competitive business.
Impact of the gambling industry on the economy
Almost all jurisdictions collect gambling taxes from casino operators. States use these taxes to fund crucial social programs. Although it often starts with gambling harm reduction programs, it doesn’t end there; public health and sports initiatives are common recipients of gambling tax revenue. In many countries, iGaming contributes a substantial share to overall tax revenue.
Online gambling also has other economic advantages. For example, with the development of the market, the number of related projects is increasing – sites offering gambling reviews, fintech startups, digital marketing agencies, etc. These in turn stimulate job creation and new tax contributions. This turns into a ripple effect with a positive impact on the global economy.
Software is necessary to start a game project. Most operators do not have sufficient knowledge to develop high-quality software, so they turn to outsourcers. The same goes for web hosting, creating more job opportunities for both segments.
The development of the iGaming industry contributes to an economic paradigm shift. Every year there are more and more online casino operators, especially in the emerging markets of Africa, Asia and Latin America. Everyone benefits – the state, businesses and consumers.