As an investor, you’re likely on the lookout for the next big opportunity. 2020 was tough, but as economies recover and businesses have learned how to adapt to our new situation, new chances for savvy investments are plentiful.
For example, the online gambling sector is growing at an impressive and sustainable rate and is one of the few that has come out stronger than ever in a post-pandemic world. This means investing in online gambling is a viable option for investors and venture capitalists alike.
What the data says
The first online gambling site was launched in 1996, followed by the inaugural sports betting site in the early 2000s. Today, hundreds of online gambling brands offer betting, casino, slots, lotto, and much, much more. Technology has played a considerable part in shaping the sector’s future, drawing in new demographics of players and keeping operators on their toes.
Currently, the online gambling sector is worth over $66.7 billion. It’s set to grow at a compound annual growth rate of at least 11.5% between now and 2028, where it’s estimated to surpass $158.20 billion. Of course, figures vary somewhat depending on where you look, but the upwards trajectory and a more than doubling of value in the next 6-7 years is consistent.
Key growth areas
Key growth areas within the online gambling sector include mobile gaming, eSports, fantasy sports, live dealer, and sports betting. Growth will also be supported by integrating different technologies such as cryptocurrency, blockchain, virtual reality, augmented reality, and artificial intelligence. These innovations will draw in new players and keep existing ones happy while providing healthy competition between providers.
Cryptocurrency, in particular, is an interesting vertical. The use of cryptocurrency and crypto payments not only provides security and a level of privacy for players. It also allows unbanked individuals to participate in the online and digital marketplace. For example, when using fiat currency, those without a bank account cannot use conventional online gambling sites. But with cryptocurrency, that can change. For operators, this provides access to a whole new audience that previously could not partake.
Why investing in online gambling?
As an investor interested in investing in online gambling, you’re likely asking yourself, “how is this worth my while?” The expansion of the online gambling sector has two positives. Firstly, there are plenty of established brands out there that are looking to expand. They already have a large client base, health balance sheets, and an established reputation. What they want is a cash injection to help them reach the next level. Perhaps they want to expand into new markets, launch a new brand, or integrate cutting-edge technology. These are safe options for investors as they have experience and potential.
The second scenario is startups and entrepreneurs. Maybe you’re concerned they are entering a saturated market, but the truth is there is plenty of room for everyone. With the opportunities that technology brings, combined with legions of new gambling fans, if your startup has the right niche, there is no problem.
Here are some key reasons why investing in online gambling is a smart move.
- The sector is growing quickly but also sustainably, meaning a bubble or slow down is unlikely
- New technology is creating additional niches that are waiting to be utilized
- It’s a regulated market meaning it enjoys confidence and oversight
- It’s lucrative for owners, shareholders, and investors
- You have a high chance of seeing a return on your investment
- There is always room for expansion and business development
- There will always be a demand for online casinos and betting
- Sports betting, in particular, is enjoying interest from new demographics
- Fantasy sports betting and eSports are driving forward new client bases
- The sector has proven it can survive and flourish during the pandemic
- Gambling stocks are on the up
- There’s a high value of investment in gambling companies
There are many reasons why you should consider investing in online gambling. Perhaps you want to invest in an already established brand or support a startup or entrepreneur taking their first steps. You might even consider creating your own online gambling company. Whatever your interest, the time is ripe for investment in this sector. Growth projections are strong, the market isn’t saturated, and millions of people are interested in gambling and millions more than haven’t tried it yet.
What now?
To discuss your options, get in touch with our team. Fast Offshore has been working in online gambling for over 23 years. We’ve assisted investors, entrepreneurs, startups, and big-name brands during that time. From corporate services to licensing, compliance, and everything in between, we can help you take the first steps to success.
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