How Big is the iGaming Industry?

Gaming, in general, is an ever-changing industry that has become a vital and sustainable part of many economies across the globe. So, it’s no wonder there is much interest in how the industry is doing and its role in the financial future of communities and jurisdictions.

One genre of gaming that has become so much more fundamental to the world in the past three years is the iGaming industry. The sector has come a long way since the 80s when only a few lines of code were executed to run a simple casino game. From such humble beginnings, players can now relish hundreds of titles at leading-edge sites such as spin city online casino. Better still, players don’t have to download additional software to their computers or mobile devices to enjoy their favorite games. Thanks to HTML5 technologies, all types of games can be played right from the browser of any device.

The industry has seen drastic changes on many fronts, especially regarding financial performance. As of 2021, the online gaming and betting market had grown to be worth an estimated $61.5 billion, and experts had projected an 86% growth by 2028.

The post-pandemic recovery, however, proved the forecasted growth rate wrong since by the end of 2022, internet and land-based gambling were worth more than $287 billion, and the figures just keep going up. According to a report by Fast Offshore, the global gaming industry is projected to grow at a compounded annual growth rate of 18%, meaning that by 2026, the industry will be valued at about $450 billion.

Significant Strides in the Industry on a Global Scale

As expected, the industry is not the same in every corner of the world as several factors distinguish one from the other. The landscape is constantly changing based on the social, political, and economic dynamics of the respective countries that allow iGaming. Here’s an overview of the potential for further growth in three of the most promising regions:

1) Asia

Asia is the undebated capital of iGaming for various reasons. First, being the most populous continent with the highest gross gaming revenues, it is unsurprising that it boasts the largest player population worldwide. Moreover, from Japanese console gaming to South Korean cloud gaming, the region has been informing the latest emerging trends in the sector, propelling the industry further ahead. Meanwhile, China’s challenges regarding regulations threaten the country’s economy, but time will tell whether things improve, especially in Macau – China’s Special Administrative Region.

2) Latin America

LatAm has been making headlines for its tremendous growth potential, fuelled by the iGaming industry. However, the region’s regulatory framework varies from jurisdiction to jurisdiction, creating opportunities and setbacks for some countries. For instance, Brazil, the region’s most populous country in the area, has not fully embraced the iGaming industry.

However, there is hope, as sports betting happens to be the only acceptable form of betting. Sports betting has single-handedly lifted the entire iGaming industry, and it has been estimated that by 2026, Brazil’s GGR will be about $1.6 billion. Argentina has been more receptive to including iGaming in building its economy, a move that has led to an annual revenue collection of approximately $2.4 billion.

3) Africa

Growth in the African iGaming market corresponds with urbanization and internet penetration in different countries. According to industry analysts, Africa’s iGaming sector will report a steady year-over-year growth of 12% in the coming years. With sports betting being the go-to for most gamblers, these projections don’t seem far-fetched.

The younger generations are particularly drawn to European football, rugby leagues, horse racing, and now unique online games like the Aviator Game. As more and more of these young people access the internet, the market is undoubtedly set to open up new opportunities to expand the industry. As we speak, the countries with the biggest potential for iGaming in Africa are:

• South Africa
• Nigeria
• Kenya
• Ghana
• Tanzania
• Uganda

Parting Shot

As the world strives to adapt and move past the pandemic, some industries have benefited, recording the highest figures in the history of their respective existences. This includes the online gambling industry, which stands to record even higher revenue streams over the next couple of years at the current growth rate.

Despite different incentives for growth per continent, it’s clear that the expansion is global and will push developers and operators to keep users engaged. In addition, there are several untapped areas in the market, which is why there is positive speculation as to what the industry’s future holds. For example, disruptive technologies are making waves across the plane, and iGaming has not been left out.