Are Stocks in iGaming Set to Boom in 2021?

In 2019, the worldwide online gambling market had an estimated value of $55 billion. Now, according to a report from Grand View Research, this figure should rise to $127 billion by 2027, growing at an annual rate of 11.5%. The document lists the increasing popularity of gambling worldwide, as well as the freemium model utilized by the industry as key contributing factors. Expanding smartphone adoption and internet penetration will also play major roles.

So, if you are wondering if iGaming stocks should rise in 2021? Going by all available indicators, the answer is a resounding – yes. Below, we explain the reasons as to why this will happen and what’s the root cause for the surge in user numbers at quality iGaming platforms, such as El Royale Casino.

More People Seek Entertainment Online

As people spend more time at home than ever before, we have noticed a substantial rise in every facet in terms of online entertainment. The entertainment industry should generate revenues of $2.2 trillion in 2021, and streaming services are leading the charge. Going by recent figures, more than 180 million Americans have access to video streaming content.

Since March, there has also been a significant user growth at online gambling sites. Global Poker, a research firm, reported a 255% increase in first-time poker players in 2020. Online casino activity rose by 25% this year and shows no signs of slowing down.

Widespread Legalization

In 2018, the US Supreme Court lifted the federal ban on sports betting. Once this event transpired, in the months following the ruling, eleven states legalized the activity and began accepting bets online. In the past few years, others have followed suit, and many of them are looking to legalize online casino gambling as well. DraftKings stocks, as well as those of Caesars Entertainment and MGM resorts, stand to grow when further states do the same.

The occurrence in the US reflects a global trend. Worldwide, gambling is becoming less taboo, as nowadays, you can play for pennies from the palm of your hand. Thus, many countries are seeking to lift bans and rake in tax revenues that they are losing from residents playing at off-shore sites.

Skill-Based Games & New Technology

Though previously, the concept of playing skill-based games at online casinos was unfathomable, we’re slowly etching closer to that possibility. Naturally, these sites will not let you get so good at a game that you cannot lose, but they will offer bonus rounds where skill plays a factor if you win a prize. The newer generations do not find chance-based games appealing due to growing up playing video games. They seek more interactivity, and platforms are willing to indulge them in small doses as a way to snag this demographic.

As Virtual and augmented reality technology finds its way to more homes, online casinos will also seek to implement it. Thus, playing live dealer games will no longer be the most authentic casino experience, and real-life venues will become obsolete.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes