The online gambling industry has experienced massive growth over the past decade. This ongoing development has many taking notice that iGaming platforms, whether they are online casinos, sportsbooks, poker rooms or a combination of products, can be highly profitable businesses that provide operators with the potential to enjoy some high returns. Today, starting an online casino business is much easier than it has been in the past.
If you have been thinking about starting an online gambling business, 2021 may be the ideal time for you to launch an online casino and grab your piece of the iGaming industry pie. To help you decide if this is a path worth pursuing, Casinnovate has put together 10 reasons why launching an online casino is a good idea this year.
1 – Online gambling market growth
The online gambling industry has enjoyed significant growth over the past decade and continues to experience this growth. For instance:
- From 2009 to 2013 the average CAGR (compound annual growth rate) of the iGaming market was almost 10%.
- In 2017 it was valued at over USD$46 billion with predictions estimating that by 2023 it would reach a value of over USD$74 billion, and by 2026, over USD$123 billion.
- 2019 the global online gambling market size was valued at USD$53.7 billion and is expected to grow at CAGR of 11.5% from 2020 to 2027.
In addition to more games, better technology and more people enjoying the convenience of gambling online, what has helped to spike growth in recent years and is expected to fuel market growth in the future, is the increasing availability of cost-effective mobile applications throughout the world.
2 – More regulated markets
Online gambling is increasingly being legalized in more countries. This means that:
- The industry gains greater support and acceptance from countries
- It becomes more reliable and safer for players by preventing them from engaging in black market gambling
- Operators have the opportunity to enter and legally target a wider range of markets
As the number of regulated markets expand, the industry grows, allowing for more operators to enjoy greater money-making opportunities.
To gain legal access to these regulated markets an appropriate license is required. Some of the markets where gambling is currently legal and regulated include the UK, Japan, Spain, Italy, Romania, Sweden, South Africa, and select sates in the USA, to name a few. Additionally, holding licenses from Malta and Curacao also allow you access to unregulated markets such as Canada and New Zealand.
3 – New Technologies
The development and integration of new and innovative technologies continue to advance online gambling business platforms. Many of these technologies help to make it possible for operators to provide an exciting and interactive user-friendly environment to their customers, an increasing amount of whom are adults that have grown up with computers and other smart devices. Some examples of newer gambling technologies include:
- Live dealer content that is more localized, mobile accessible, and has greater game variety that includes a wider selection of games not related to classic card and table casino games.
- Virtual reality (VR) casinos that deliver a 360 degree fully immersive and interactive experience.
- Skill-based games and platforms designed to allow gamblers to fulfill certain objectives beyond simply placing a bet (e.g. advancing to certain levels to unlock new games, rewards, etc.).
- Social gaming, which lets players enjoy free-to-play online gambling via social networks.
- Telegram casinos that function with the support of a chat bot are considered by some to be an evolution in mobile gambling.
4 – Greater acceptance of cryptocurrencies
Another type of technology that has advanced in recent years, particularly in the online gambling sector, is the use of cryptocurrencies. For instance, more and more Bitcoin casinos are popping up. This doesn’t only include casinos that offer cyrptocurrencies as part of their payment options, but those that support only crypto payments as well.
The one major advantage of launching a cryptocurrency only casino is that an operator does not need to have a traditional payment gateway, which is necessary to process conventional payment methods like credit cards, bank transfers, eWallets, etc. Moreover, cryptocurrency casinos can be accessed by any player from any market as this is not a regulated form of payment and these casinos do not require a license from an industry regulator. Those who gamble with bitcoins or other types of this decentralized form of digital currency also like the anonymity it provides as well as the opportunity to win bitcoins.
5 – More software developers
Today, there are hundreds of companies that develop and supply online casino games and most deliver games that can be played across multiple platforms, including, desktop, mobile (web and apps) and tablets (web and apps). There are literally thousands of different online slots as well as a large range of progressive jackpots, virtual card and table games, video poker, scratch cards and casual games as well as live casino entertainment.
What’s more, other products that can be implemented on an online gambling platform include: bingo, lotto, virtual sports, sportsbook, eSports, etc.
Nowadays, with so many incredible award-winning and innovative gambling software game providers, it’s easier than ever to provide players with a truly diverse gaming experience that can suit a variety of interests and skill levels.
6 – Betting has never been more convenient or easier
Today, everything is done at a faster pace. We move faster, we communicate faster, we expect faster results. Online gambling perfectly fits into our fast-based societies. You don’t have to get into your car and drive to a land-based casino or local book shop. An internet connection and a few clicks of the mouse or taps on a phone screen and you’ve got a high-quality gambling experience right at your fingertips, anytime and anywhere.
In fact, studies have found the main reasons many people prefer online gambling to land-based venues are due to reasons such as:
- Greater convenience
- Ease of access
- Comfort
- Don’t have to deal with the crowds or clientele of land-based casinos
- The overall nature of the online gambling experience
New technologies and mobile growth, coupled with the primary reasons consumers prefer to gamble online, is a strong indication that the competitive advantage iGaming currently has over land-based gambling will last.
7 – More and more people are choosing to gamble online
While it is not likely that brick and mortar gambling establishments are going anywhere anytime soon, the reality is that we’re living in a digital age and the online gambling frequency today is much higher than it was over a decade ago.
In fact, even way back in 2013 the online gambling industry was already making its mark. According to a 2013 study conducted by Gainsbury, Parke and Suhonen, 43% of online gamblers gambled four or more times per week compared to 19.3% of land-based gamblers. With more internet and mobile casinos launching all the time, this percentage isn’t getting any lower.
8 – Improved marketing and retention strategies
The marketing strategies for online casino promotion have improved over time. Now there are a variety of methods that are employed to help both acquire and retain customers. Quality affiliate programs, VIP/Loyalty systems, sign up offers and online, social and tv ad campaigns are all great ways to attract new players.
However, today’s online casino marketing pièce de résistance is customer relationship management (CRM). This marketing system has become an essential aspect of online casino management, allowing operators to streamline their online casino operations based on vital information they discover about customer behavior and their preferences. With this valuable data, operators can deliver the best and tailored experience to their customers to create loyalty (especially among high rollers) and get the most out of a player’s lifetime value.
9 – Cost-effective solutions
There is certainly money to be made in the land-based gambling industry. However, it’s a no-brainer that maintaining a physical business is much more difficult and costly than running and maintaining a website. There are fewer employees, no need to purchase betting terminals, cover rental location fees, etc.
Moreover, another major advantage of choosing to launch an online gambling business is that since it is online, you don’t need to worry about certain issues that could be detrimental to a physical business, such as a fire, flood, natural disaster or, in the case of 2020, a pandemic.
Additionally, there are many ways to obtain the platform, products and services you require to launch an online casino. Different casino solutions like white label, turnkey and API integration offered by iGaming software suppliers, provide you with flexible and different cost-effective options.
10 – Fast launch
Thanks to iGaming software developers and providers offering B2B products and services, not only is it easier to start an online casino than ever before, but it’s also easier to launch a casino fast with brilliant solutions like a white label product. Those who choose this option can have their online gambling project up and ready to go in as little as 1 to 3 months!
Launch an online casino business with the help of an iGaming software provider
There are many different online gambling software providers that can help you bring your goal of launching an online casino to fruition. The easiest and most convenient way to find the one that suits your aspirations is to check out our detailed software reviews.
Casinnovate reviews only the best and most reputable company’s in the industry, many of which provide a variety of solutions, including both white label and turnkey platforms, that are ideal for newcomers to the industry. Explore your options today!