The betting industry is forecast a compound annual growth rate around 11.49% during 2021-2026, and had already seen some growth over the pandemic. Some of the best betting sites have seen tremendous growth in their customer base whilst online casinos are taking arguably displacing traditional casinos – but why now?
Covid Pandemic
Before discussing the driving factors of recent growth, it’s important to point out that this trend was already occurring – it’s just simply a matter of what has accelerated this current trend. One huge accelerating factor was the pandemic. It sounds strange, that a global pandemic and economic disaster could spur on a rise in frivolous betting.
But, the fact is that due to the helpful government schemes, many people did not lose their job in the developed world and actually had more disposable income due to the fact most of their favourite pubs, restaurants, and places of entertainment were closed. So, what happens when you get a growing middle class with a newfound endless pool of time and money? An increase in investing and betting.
Competitive rewards
One of the key ways that bookmakers compete is on rewards and bonuses. At the end of the day, if two bookmakers are offering the same bet for the big football game on the weekend, it’s difficult for them to put forward a USP or a reason to pick them. One key way to stand out is by offering free cash or free bets when signing up. Plus, this can be factored into the cost per acquisition model for the company, which is much more manageable than offering competitive odds for all customers that render unprofitable. Plus, customers have caught on that they can simply sign up, use the bonus, then sign up to a different bookmakers. Rinse and repeat.
Accessibility and payment
It used to be fairly awkward to sign up to an online betting company, but things are getting easier. First and foremost, more payment solutions are offered with better security and transparency. There are even options for crypto deposits, but this does venture into an unregulated grey area at times. PayPal and other convenient payment options are often offered now, but it’s also easy to sign up from anywhere. Apps are redundant in a lot of cases because the website is so responsive that its mobile web version is incredibly slick and with quicker load times than an app.
Mobile has been the focus for a decade now, but with better internet coverage, more powerful handsets, and 5g, it’s even easier to pick up and play casino games literally anywhere in the world. From 4g on the top of Norwegian mountains to Wi-Fi being offered on every corner in Tallinn, it’s never been easier to play as and when you feel like it.
Technology
Finally, technology is the infrastructure that underpins the entire industry. It is technology that drives website design, mobile phones, and even newer innovative forms of playing, like VR casinos. In fact, the game development of casino games and even some sports betting games (i.e. virtual horses) is driving new customer sign-ups – with more gamification than ever before.