The IGaming or Online Gaming industry has been thriving in recent years, in which it’s been named as one of the fastest-growing industries out there. With statistics suggesting the global IGaming industry could be worth as much as $100 billion in the next four years, there’s an incredible amount of opportunity where investors are now jumping at the chance to invest in IGaming organizations.
Thanks to the growth and rapid development of technology, people from all corners of the globe are now able to access IGaming websites and apps from their smartphones and other portable smart devices. The fact is that it’s never been so convenient or easing to access online games. So with 2020 being a challenging year for a lot of sectors, how has the IGaming industry stood up?
2020 has changed the name of the game
This year has posed a lot of challenges to businesses, with many having to shut their doors throughout the two lockdowns and even most of the summer. The staff has been furloughed, pay cuts have been made and services have been reduced; yet some organizations have been lucky by being able to move their services over to the online world. Places such as restaurants, gyms, and tutoring services have all found ways to utilize technology in order to be able to offer their services to people in the comfort and safety of their own homes.
The IGaming industry has been no exception to this, with providers seeing a dramatic uptake in players during the first and second lockdowns. Statistics have shown a 70% increase in people playing video games during this time, with people finding more time on their hands while being trapped at home and needing to find more methods of entertainment to fill their days.
Why has IGaming been so popular?
The great thing about online gaming is that they don’t have the same physical restrictions as brick and mortar venues, meaning they are able to offer a larger variety of games. From the latest online slots to blackjack, and live poker rooms, online casinos have been raising their game with improved graphics, enhanced sound effects, and an overall more immersive gaming experience. Some vendors are now even using the likes of virtual reality to enhance gameplay and bridge the gap between the physical and online worlds.
Thanks to the huge amount of competition in the online IGaming space, players are now also able to find a huge amount of deals and new player bonuses. The like of online slots on this site offer a huge variety of different slot games, in which Casumo Casino also have some great sign up bonuses for new players to take advantage of.
Franchise growth
While many IGaming providers are reporting growth throughout 2020, compared with a loss in 2019, it can be attributed to more than just people staying at home. It seems that IGaming vendors are now entering into partnerships with franchises in order to enhance and diversify the games they have on offer.
The likes of EA games have recently reported a 6.5% YTD return for 2020. In 2019, the company experienced low user engagement with titles such as Battlefield and Need for Speed, however, this year they have been making the most of franchise opportunities and have seen an uptake in players for titles such as Fifa, Apex Legends, and Star Wars. In addition, Activision Blizzard has reported an 11.6% YTD return for 2020, with titles such as Call of Duty: Modern Warfare proving to be incredibly popular. This title has turned out to be their top-selling game for 2020, in which it earned sales of over $1 billion after just one month of launching the game.
Future growth of the industry
The industry is set to continue growing as more and more IGaming businesses enter the stock exchange. Investors are now really beginning to see potential in the industry and can’t seem to line up quick enough to get their hands on the next IGaming success. Deals such as the one between Evolution Gaming and NetENT have joined forces after Evolution Gaming made a $2 billion offer.
This merger has created a force to be reckoned with within the IGaming industry, however, some business analysts are questioning whether moves like this could decrease the diversity of the industry. While there’s currently a diverse range of IGaming providers’ that have unique offerings, the formation of conglomerate organizations through mergers could not only decrease the diversity of the industry but also put it at more capital risk if we were to see another economic disaster in the upcoming years.
What trends can we expect?
As well as acquisitions and mergers with key players within the IGaming industry, we can expect to see the exploitation of franchises in order to enhance and diversity games. We can also expect to see payment methods change as we shift towards a Crypto currency model.
Overall, while 2020 hasn’t been the best year for the economy, it’s certainly helped the IGaming industry to thrive.
