Why the USA is Poised for an iGaming Revolution?

For several years, the iGaming market in the USA has been a very uncertain place, perpetually stuck in a legal grey zone. But now, with a key legal obstacle just being overturned, the iGaming industry is perfectly positioned for an exponential growth. This is bad news for all the illicit, offshore operators that currently dominate the online grey market which is worth billions. For gaming companies based in the US, and for the US economy itself, this is welcome news. 

Here’s what’s happened so far and what the near future holds for the US online gambling sector. 

Online Sports Betting – Now Legal?

Sports betting is one of the most thrilling and lucrative areas of the expanding gambling market, where tens of millions of individuals worldwide hope to strike lucky and get rich. The underground sports betting market, which is set to become legal, is estimated to be worth more than $400 billion annually. 

In a major decision, the U.S. Supreme Court invalidated the Professional and Amateur Sporting Protection Act. With the exception of a small number of states, PASPA has made it illegal to wager on sports events. However, all around the nation, internet betting will soon be available.

Sports betting may be poised to go mainstream. The grey-market accounts for 99% of all betting in the United States. Legalization may likely happen as soon as next year in some states and could create a $5.2 billion legal betting market.

The initial step was repealing PASPA. The federal government of the United States cannot forbid sports betting any longer. Individual states have the power to legalize it and levy taxes on the sales. This is something that New Jersey already does; in September, the state recorded $184 million in wagering, with $24 million going to the gambling establishments. It’s anticipated that more states would use sports betting as a source of governmental income.

High Barrier to Entry

It’s difficult to penetrate into the online gaming industry as an operator. Gambling has low profit margins, with the house collecting maybe $3 out of every $100 bet. Millions of users and a ton of daily traffic are essential for online businesses; DraftKings, for instance, depends largely on its 10 million repeat clients.

Few businesses are able to accomplish this successfully, and the competition from more established betting organizations and players like DraftKings and FanDuel makes it difficult for newcomers to capture any market.

The Global iGaming Market Valued at $172 bn by 2030

If you haven’t started playing online games yet, you may find yourself enjoying such games pretty soon. The online gaming industry is thriving and is expected to continue expanding.

By 2030, the expansion is predicted to increase the value of the global gaming market to $172billion.

It’s not like online gambling has not existed in the US in the past. Dozens of free no deposit casinos have serviced the US but through a proper regulatory framework that’s accepted by the authorities.

In the past 20 years, one of the fastest-growing industries in the world has been online gambling. On a variety of platforms, millions of individuals bet every day. As a result, these websites produce enormous amounts of income, which raises the value of the worldwide online gambling business. Due to the expansion of mobile gambling applications, online gambling — also known as internet gambling or e-gambling — is in extremely high demand.

With both new and established gamblers turning to online platforms, internet gambling has revolutionized the playing field of the business. A few of the elements that have caused players to turn their attention from traditional gambling to online gambling include accessibility, convenience, and corporate sponsorship. This element is also anticipated to increase the value of the global and US market. 

The Pandemic Added Fuel to the Fire

After millions of individuals picked up their online gaming to escape the monotony and solitude of COVID-19 lockdowns, social and casual gaming is now driving the expansion.

Many players are of the opinion that playing online games during lockdowns improved their mental health. According to a poll of gamers in Europe, 16% of them shared this opinion, with multiplayer genre players expressing their opinions in particularly favorable terms.

During the pandemic, so many current and new gamers splurged on games, consoles, and other gear that the market grew by 26% between 2019 and 2021. The online gaming business is flush with cash.

Although lockdowns may have created millions of gamers, transitioning to working from home presented unforeseen creative obstacles for those who work in the gaming sector. One would have anticipated that the technologically sophisticated workforce, which deals nearly exclusively in digital commodities, would transition to WFH with ease. However, in certain instances, a lack of unplanned cooperation hampered the production of new products, and highly anticipated games missed their release schedules by weeks or months, even. Some gaming businesses lost millions due to delays.

Furthermore, the popularity of mobile gaming is rising all around the world. The mobile gaming business is predicted to expand rapidly over the next several years. Gaming regulators claim that younger people, who are more prone to addiction, commonly engage in mobile gambling and sports betting is the most popular type of this category.

Share on Facebook

Tweet

Follow us