The online gambling industry is massive. Researchers estimate that it will attain a market value of $127.3 billion by 2027. In 2019, the market value was $53.7 billion, and experts expected it to reach a market value of $59.6 billion by the end of 2020. That’s assuming a CAGR (compound annual growth rate) of 11.5%.
Online gambling has made the use of cryptocurrencies, artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) commonplace. Most modern markets are turning to technology to expand their consumer base.
Daniel Bennet is a gambling expert and explores these important themes in his articles. If you’d like to read more about how to gamble online and 5$ deposit casinos, then check out his posts on these topics.
With the onset of COVID-19, the gambling industry has turned to its online consumer market to fill the gap created by the global pandemic. Household names like William Hill PLC have taken a hit in the revenue department. Many betting shops have closed due to lockdown measures.
The pandemic effects have been devastating for many, but gambling continues to grow due to its large online segment. In some ways, the changes that were a result of the pandemic were inevitable and may have only sped up the process.
The BBC claims that this decrease in revenue at betting shops is old news, though. It reported that the company William Hill was closing shop on 700 locations after regulations made significant cuts to the stakes in fixed-odds betting terminals, placing them from £100 to £2.
However, the classic operator readjusted its budget and successfully protected its retail colleagues. It also continues to expand its consumer base in the US.
Veteran operators have gone mobile and are fighting for their place in online gambling.
Gambling technology, like AR, is now crucial to the survival of gambling operators.
Online gambling isn’t without its own problems, though. Both gamblers and operators worry about cybersecurity.
With online gambling and mobile operator apps on the rise, both parties have to be careful with their data. Cybercrime and gambling addiction are real threats.
Online casinos use AI, VR, and AR in gambling industry marketing to attract new players and retain loyal customers.
Blockchain and the Decentralization of Online Casino Transactions
Blockchain technology is the basis of cryptocurrency transactions. It allows entities like online casinos to decentralize transactions with users.
The “chain” in blockchain refers to a Merkle tree, which is the structure that the individual “blocks” create. Each “block” provides a cryptographic hash (an algorithm and one-way function that maps data of arbitrary size to a bit array of a fixed size), a timestamp, and transaction data. This process creates a series of “blocks” that, in theory, are impossible to revert.
It was invented back in 2008 by Satoshi Nakamoto to serve as the open transaction ledger for bitcoin. That means it is essentially the place where cryptocurrency data is stored and the basis for carrying out Bitcoin transactions.
It provides a basis for secure and immutable transactions between mutually suspicious parties.
Thus, it’s a good fit for online casinos and gamblers.
Cryptocurrencies and eWallets
Cryptocurrencies like Bitcoin and eWallets such as Paypal, Skrill and Neteller are replacing credit and debit cards as the principal payment method at online casinos.
eWallet options are still more popular than Bitcoin. Bitcoin is growing in popularity, though, due to its potential security advantages.
Bitcoin isn’t accepted at all casinos.
Yet another reason it hasn’t gained the same amount of traction that eWallets have.
The online gambling market currently dominates gambling trends. New technologies like AI, VR, AR, and cryptocurrencies have increased the competition level that online operators face. These technologies have created new segments in the gambling industry.
The subsequent segments come with new risks and challenges. Only time will tell which of these technologies can withstand the pressures of the online gambling industry.