Humankind’s tryst with an adrenaline rush is as old as the civilization itself. However, the ways to reach this rush are entirely personal and vary from one person to another. While for some, it is participating in adventure sports, others enjoy the thrill of winning wagers and bets on top-canadiancasinos.com/real-money-casinos/
In this era of digital development, online gambling has evolved to a great extent. The prime example of such development is online casinos, which provide the same experience as the physical ones but within the comfort of one’s home and at the pleasure of their time.
Gambling: Is It an Itch or Something Else?
The year 1994 witnessed the advent of online casinos as the first step towards the digitization of gambling when a company known as Microgaming based out of Isle of Man developed a gambling software that was not only functioning seamlessly but was also secured from cyber attacks since AI is changing online casinos.
Following this development, several other companies started to build similar software that would enrich the world of online gambling. In just ten years, the number of online gambling users reached a whopping eight million, thus drawing the attention of potential investors in this budding industry. Today, the platform of online gambling has expanded its reach in various branches of betting and wagering like derby, sports betting, etc. The most common forms of online gambling include the following.
Common Forms of Online Gambling
For those that have just started their journey on online gambling investment, here is a short description of the most common form of online gambling.
● Poker
The game of cards can be easily deemed as the brand ambassador of gambling. The digitization of gambling has been first manifested in the game of poker. Hence, online poker is not only the most popular but also the older form of online gambling.
● Casinos
As stated at the very beginning of our discussion, casinos offer a plethora of games that serve as a strong base to keep the players engaged and interested for a long time. Hence, providing an online platform that does similar things happened to be a great idea.
● Bingo
Bingo, Housie, or Tambola is a game involving probability that has been used for betting for quite some time. Digitizing games based on probability is fairly easy yet popular.
● Lotteries
Lucky draws or lotteries have been dependent on manual randomness (for example a parrot pecking a ticket) to decide on the winner. Developing software that would generate this randomness without any manual effort proved to be a great idea that could be utilized in online lotteries.
● Sports Betting
Nothing gives a better adrenalin kick when one’s prediction about the outcome of the game comes out as true letting them win. Using data analytics to predict the outcome based on the previous data about teams’ or individuals’ performances has been a revolutionary trend in developing online sports betting software.
Online Gambling Market
Statista, a renowned German company specializing in consumer data and market analytics had predicted way back in 2016 that the market dealing with online gambling would reach wuthering heights just like the best gaming PC of 2022 in the future with an approximate value of 56.05 billion USD by 2018.
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The current market value of this industry is 59 billion USD. The same company has predicted the value to be 92.90 billion USD by 2023. The online gambling business has a good prospective Compound Annual Growth Rate (commonly known as CAGR). It is estimated that the industry’s CAGR is almost 11.49% as forecasted from 2021 to 2026. Looking at the predictive and real data one can easily understand that the market is a flourishing area that can prove to be quite lucrative to potential investors.
Many studies associate the COVID Pandemic to be the reason behind this profitability. As more and more populations were locked behind the confines of their homes, they turned to the online gambling platform for some form of excitement and entertainment. Another factor of the financial crisis also panned out to be a driving factor for earning some easy money during the pandemic situation. Moreover, many gambling establishments that were yet to be in the online business, had finally started to follow the trend because of the pandemic to stay afloat in the business. These major factors added more fuel to the existing affluence of this industry.
Investing in Online Gambling Businesses: Is It a Trap?
The answer to this question is not that simple. Anyone who has a basic understanding of the stock market would know that investing in any company gambling or others always involves a risk. It depends on the acumen of the investors to reap the profits and cut the losses.
However, if we look back at the areas just discussed, then we can have some trust that investing in this market would not be such a bad idea after all. There are some basic ways to start investing in an online gambling business without getting involved in the complexities of stocks and equities:
- Since online gambling will always attract potential players in some form or other, supporting or building the software development would prove to be a good investment plan.
- Another way not to incur any loss is to invest in an already established business who are looking into expanding its horizons. This approach would have a lower risk impact on the invested capital.
- New technologies like Virtual Reality, Augmented Reality has great potential for good business. Understanding such new technologies would prove to be useful in investing money.
Invest but Understand the Risks First
Investment nowadays is not geographically bound. With the advent of new technologies like cryptocurrencies, or concepts like EFTs, one can invest in any corner of the world. But the point to note before such investments is to understand the local laws and regulations to ensure a safety net.
Hacking is the collateral damage that online brings with it. Therefore, before investing in such online platforms, have a thorough analysis if you are being duped or not. Last but not the least, is the fierce competition that exists in such markets. Always go by best market practices while investing so that your competitors do not take any undue advantage.