Photo by Bruce Amrs
The global market for iGaming is expected to grow by around 10 percent between 2017 and 2023, this according to a recent report by market research organization Arizton Advisory & Intelligence. If realized, this growth would see over $74 billion spent by players across the globe by 2023.
Such an increase in market size is attributable to several factors, including deregulation of the sector in a few geographic regions as well as a growing affluence that encouraged many to increase their levels of spending. The predicted growth is a continuation of an existing market trend, which saw a 7.5 percentage point increase of 18 to 34-year-olds engaging in these types of games between 2008 and 2014.
Growing Mobile Market
Photo by Pexels
The Arizton Advisory & Intelligence report attributes a significant proportion of this growth to the improving accessibility of mobile gaming. Improving technology and the widespread availability of smartphones allow iGaming companies to attract new players into the market. Specifically, the report expects growth in mobile gaming in Europe, especially the United Kingdom, France, Germany and Italy.
With the growing availability of providers for games such as poker, the level of competition is growing. Just like in any other market, this increased competition creates an environment where providers of games like online poker offer better loyalty schemes and bigger sign-up bonuses to attract new players and retain existing ones. These offers are likely to increase, especially when you apply economic game theory to examine how competing businesses may try to gain an advantage over the others.
This increased competition is also evident in other marketing techniques employed by iGaming companies. For example, watchers of British television often struggle to avoid regular adverts for online gaming websites and mobile applications, especially bingo and slots. These types of adverts increased from 0.5 percent of all TV adverts to 4.1 percent between 2005 and 2012. In addition, large offerings of “cash back” have also been offered on consumer rebate sites, such as Quidco and TopCashback, as ways of influencing players to choose a specific platform.
Such fierce competition is likely partly attributable to the fact that research yet proves a link between advertising and the promotion of gaming platforms and an increased uptake among the general population. Instead, a 2014 study conducted by Nerilee Hing et al. showed that the promotion mostly only changed the distribution of market share. Therefore, it is key for the gaming platforms to attract these new players and encourage loyalty.
It is likely that the iGaming sector continues its existing trend of growth, with access to mobile technologies providing opportunities to attract new players to the sector. In addition, deregulation and improving economic situations helped to improve access to the sector. This new market is already stimulating the creation of intense competition between providers, which will likely lead to bigger and better sign-up and loyalty bonuses for players looking to take advantage.