The convergence of the online gaming and gambling industries accelerated during the coronavirus pandemic. Throughout 2020, gamers worldwide increased how much they spent playing video games.
With brick-and-mortar establishments shuttered, online gambling at casinos also rose. Nearly 70% of online gambling revenue in 2020 came from mobile betting.
An estimated 85% of the world’s eight billion population owns a smartphone. That figure may contribute to the online gambling market reaching $100 billion by 2026.
There are also billions of mobile gamers worldwide.
Let’s explore the interconnections between online gaming and gambling.
Worldwide Internet Access
World Bank and U.N. data show that less than three million people had internet access worldwide in 1990. By 2000, over 400 million people became Internet users.
In 2010, there were approximately two billion people with internet access. Almost half came from Asia, which increased internet usage tenfold between 2000 and 2010.
By 2020, there were 4.70 billion internet users worldwide. That represented over a 156,000% increase in three decades, an unprecedented achievement.
Gaming and gambling companies dealt with one of their history’s most significant boom periods. With billions of online users worldwide, small companies have become large corporations.
Worldwide internet access made it possible.
The Rise of Smartphones
Smartphones became available to the public in the 1990s. They became more accessible and affordable in the 2000s. Apple released its first iPhone in 2007.
The company sold nearly 1.5 million phones in 2007, generating over $600 million in revenue. Five years later, Apple sold more than 100 million iPhones in 2012. That number peaked in 2015, with more than 230 million iPhones sold.
By 2016, there were 3.4 billion smartphone users worldwide. When the coronavirus struck, there were almost six billion smartphone users—with the highest levels of internet access in history.
There might be as many as eight billion smartphone users by 2027. That’s almost every person on the planet today.
Online Gambling Sites
The first online gambling came from a lottery in Europe in 1994. Around the same time, a software company based on the Isle of Man created the first gambling software. An online security software company also helped to make online transactions secure.
That led to the creation of the first online casinos. Licensing authorities established themselves in the Caribbean and Canada. A dozen gambling sites in 1996 grew to hundreds by 1997.
The industry then saw its first online poker sites, starting with Planet Poker in January 1998. A decade later, the online gambling market became a multi-billion-dollar industry.
The Gambling Act 2005 in the U.K. also served as a monumental shift-change in regulating online gambling. Ultimately, the legislation became a blueprint for similar legalization efforts in the U.S.
Today players worldwide can choose from various online gambling platforms, including offshore options like Bovada, BetUS, and Las Atlantis. There are many online casino games for cash at reputable sites with secure transactions.
Mobile Gaming with In-App Purchases
One of the latest trends in the gaming industry comes from mobile apps. The history of these apps goes back to Nokia’s arcade game “Snake” in 1997. Ten years later, Apple launched the App Store, with Google following suit with Google Play in 2012.
First released in December 2009, Angry Birds became one of history’s most popular mobile gaming apps. By 2015, the free app generated over three billion downloads.
The most popular gaming apps on Google Play include Monopoly, Roblox, Candy Crush, and Subway Surfers.
A convergence between gaming apps and gambling comes from in-app purchases. For example, many gambling apps exist on the App Store and Google Play.
Bingo is a popular title that issues the new business model of in-app purchases. Gaming companies offer free apps, asking users to pay for coins, tickets, boosts, and more. They may also receive those same features for watching in-game ads.
Social gaming is another trend associated with a combination of gaming and gambling. Players may gamble at blackjack for free with 3D graphics while playing alongside other users. Gaming companies that provide social experiences allow users to connect via Facebook.
The popularity of gaming apps transformed the gambling industry forever.
Partnerships Between Gaming Companies, Sportsbooks, and Casinos
When the U.K. began regulating online gambling, it became a centralized hub for gaming companies. Offshore jurisdictions like the Isle of Man, Gibraltar, and elsewhere in Europe attracted startups with lower taxes and licensing fees.
Savvy and innovative gaming entrepreneurs started companies in Canada, Costa Rica, and Curacao. They grew to become some of the top companies in the offshore market.
Those companies offered online sportsbooks and casinos to players outside legal jurisdictions. Software developers that created gaming apps also branched out into the gambling industry.
Social gaming intertwined with real money casino games, creating some of the most popular titles in the industry. Gambling legalization across the U.S. also sparked interest among new users and technologies to boost the sector.
Those advances included things like SSL encryption for more secure online transactions, along with cryptocurrencies. The legal loopholes of offshore gambling sites allow users to deposit and withdraw their favorite crypto.
Gaming and gambling companies may have been separate in the past. Today they continue to converge within one massive industry. Players get the most innovative user experiences as competition drives the industry to new heights.
What is the Future of the Gaming and Gambling Industries?
Gaming and gambling industries fused with internet and smartphone access. Americans now gamble more than ever while mobile games become increasingly popular.
Online promotions attract new players, including welcome bonuses. Gambling platforms offer sections on e-sports for wagers on automated matches. Virtual sports have begun on legal sites as well.
In the future, it may become common for gamblers to bet on internet gaming competitions. Virtual reality (VR) and artificial intelligence (AI) might also be more prominent.
Gamers may use VR goggles and voice commands to alter seamlessly from their favorite online game to a blackjack table.
What’s your favorite online game to play or gamble on?
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