All these developments have made the online casino business very lucrative. You can find multiple top-rated casinos where they can play their favorite games, such as Keno, at the comfort of their home. Studies have revealed that there has been an acceleration of growth and increased deal activity in the past few years.
Additionally, the growth is experienced in existing video games industry payers and fresh investors. However, the growth has already attracted scrutiny, especially in matters of player protection. There are also controversies over monetization methods that have continued to cause negative sentiments resulting in calls for increased regulation.
Israel has been one of the leading exporters of online gambling and casino companies globally for several years. Recent news revealed that an Israeli-managed and London-listed company bought a US-owned gambling business for around 2.2 billion GBP. This shows that there are still plenty of opportunities for Israel-based casino and gambling companies to expand to international companies.
Online Gambling Boom
The online gambling business is booming globally. Notably, the COVID-19 pandemic boosted consumer demand leading online gambling operators to higher revenue highs. However, some studies have claimed that sports betting and poker have experienced less growth. Sports betting took a hit because there were no sports events during the pandemic.
On the other hand, online casino slot games and other casino games are gaining traction in markets that offer relatively massive terrestrial offerings.
There is an increased pace of mergers and acquisitions in the online gambling and sports betting industry in the US market. Industry experts project that the industry will grow from 64.13 billion USD in 2020 to 72.02 billion USD in 2021. That growth represents a Compound Annual Growth Rate (CAGR) of 12.3%.
European Markets Open Up
There have been many new expansion and investment opportunities in recent years. These opportunities have been down to regulatory changes in several European countries, which have opened up to gambling markets.
For example, in Germany, a new State Treaty on Gambling was enforced. The new treaty provides new licensing opportunities for online slots, sports betting, and online poker for operators across the country.
The new treaty replaces a previous prohibition on online gambling, which only permitted sports betting. However, strict license conditions and high taxation have attracted criticism from industry lobbyists. The only consolation is the market size and liquidity of the population, which make the new licenses desirable for operators.
There are also more opportunities on the horizon. For instance, the German federal state of North-Rhine-Westphalia has published a draft law, which would open the door for operators to get licenses for online casinos.
Another country that could offer more opportunities for online gambling is the Netherlands. The Dutch authorities made remote gambling licenses available in April 2021. The licenses open the door for casino games and sports and horse race betting.
Other markets that have opportunities for online gambling operators include Sweden, Denmark, and Ukraine. Apart from Europe, studies have shown that other regions are offering great opportunities for the gambling industry. Examples include Africa and Asia.
Reports from Africa have claimed that the market is set to register growth in revenues. Other studies have suggested that emerging markets will grow faster than their counterparts in developed countries. This has made the emerging markets fundamental to the expansion strategies of top online gambling operators.
Operators Need to Raise Capital
The emerging opportunities mean that operators need to raise capital. At the moment, there are three major trends in the industry:
Additionally, the emerging markets are not attracting established gambling companies alone. There are other investors interested in this lucrative industry. For example, some renowned media companies have shown interest in the regulated betting market.
Moreover, private equity and venture capital funds and other investors have also invested in the online gambling industry. These companies have taken advantage of friendly gambling regulations to expand their operations to new markets.
Final Thoughts
The online gambling industry is growing at a high rate. Several factors have contributed to the growth of the sector. For example, technological innovations have contributed significantly to the growth of online gambling.
Additionally, many jurisdictions are revising their gambling laws to make them friendlier to gambling. This development has opened up new markets for online gambling operators.
