The iGaming industry is booming. In 2022, online casinos and sportsbooks broke records when it came to revenue. And it seems like new online casinos and bookies are opening their proverbial doors more and more.
In much the same vein, land-based casinos are back to making money. After the 2020/21 lockdowns, Las Vegas, Monte Carlo, Macao, and other gambling hubs are back to generating mass revenue. With all this in mind, many are asking the question: Is it worth investing in casino providers in 2023?
Online Casino: More than Just a Game
Most people don’t view online casinos as an option for investment. Rather, what they see is just a place to go and have fun. With a wide variety of slot and table games, online gambling websites have managed to draw in a huge crowd of punters and gamblers.
Slot games are the uncontested champion when it comes to online casinos. They get the most players and the most traffic. And for a good reason. Slot games are incredibly simple to understand and play. All you have to do is press a button and hope for the best. And, of course, online, they are made a lot more fun thanks to visual and audio effects.
Blackjack is also hugely popular. The reason for this is that blackjack has the best player odds out of any casino game. To top it off, the rules are easy to understand, and getting the hang of the game is quite simple.
Lastly, who doesn’t enjoy a hand of poker? Poker games get a decent chunk of traffic at online casinos, especially from high-stake, experienced veterans who want to test their skills against a broader pool of opponents.
So, with this much fun to be had, it is not surprising that online casinos are viewed as simple entertainment. Especially considering all of the bonuses that also come with the games. However, you would be wrong to look at online casinos and miss the potential of investment.
Investing in Online Casino Operators
The iGaming industry first began in the 90s. However, it is largely in the 2010s that it hit it big. And since then, its growth has been rather impressive. In 2020, online gambling revenue hit $66 billion, with 64% of gamblers moving from land-based casinos to the online realm.
But that isn’t even the most impressive number in regard to casinos. According to a survey, 85% of all Americans admit to having gambled at least once in their life. And a huge chunk of that percentage claims that they do it frequently.
So much so that experts and predicting that the online gambling market will grow exponentially in the next five years. In fact, it is expected that it will break the $100 billion mark by 2026. So, if you are wondering whether casino operators are a good investment, the answer is yes.
The Pros of Investing in iGaming
The biggest benefit of investing in the iGaming market is that it is a rapidly growing industry. We already gave you the numbers that show how quickly the market is growing. On top of that, more and more people are signing up for online gambling and sports betting services. An interesting surprise is that a larger percentage of those signing up for online sports betting are women. Ironic, considering sports have always been regarded as “a male activity.”
So, the pros of investing in iGaming are that the industry is on the rise. Revenue is pouring in, the popularity of online gambling is growing, and a lot more people are signing up for gambling websites. However, when it comes to investing, there are always risks to consider. So, in the next section, we are going to go over what you need to look out for if you are going to be investing in online gambling websites.
The Risks of Investing in iGaming
The biggest risk of investing in iGaming comes from the legal volatility of the practice. Laws regarding gambling, in general, have always fluctuated. And with online gambling, it is even worse. Legal reforms related to iGaming can hit at any time and have a significant influence on the market.
However, if that is your biggest worry, you will be pleased to find out that online gambling is becoming a lot more accepted in many countries. More and more US states are legalizing the practice. iGaming is already legal in the UK and most of Europe. Even Africa, South America, and Asia are hopping on the bandwagon.
Still, the risk that these laws could change is always there. And if you are going to invest in online casinos, you should be aware of the existing risk.
Tips for Investors
So, let us say you’ve decided to invest in online casinos. What should you do to get a start? Well, the first thing you have to do is ensure that you follow the latest trends and news in the industry. This advice applies to any investment. Whether you are looking into the stock market or any other sector, doing studious research is incredibly important.
Branching off from this advice, you should always pay close attention to the developing technologies that might change the industry. These developments will undoubtedly have a huge impact on the market and on the shares you’ve invested in. Technology is changing faster than ever, and all markets are influenced by this fact. So, keep your eyes on the prize, do the necessary research, and stay ahead of any changes that might come.
Final Thoughts
The iGaming industry is quickly expanding and growing. Unsurprisingly, this growth has perked the interest of investors looking to make a buck on the market. According to many experts, the gambling industry is a prime market for investments. However, it is important to note that any investment comes with a certain degree of risk. So, if you are interested in investing, do the due diligence of researching the market, and be aware of any risks that might come with an investment.
