With 2021 almost behind us, it’s time to start looking towards 2022. Although there are still a few months left, most businessmen are already strategizing for what lies ahead. It has been an exciting couple of years with many unpredictable events and trends. We have seen digital currencies, virtual reality, eSports, live dealer games, IoT and many other technologies find their way into the industry. It has also become clear how vital mobiles are to the gaming industry. So what else have the last two years taught us and what can we expect from next year?
The year that everything changed
2020 has been a year none of us were prepared for. The COVID-19 pandemic saw the world stranded in mid-March, with sporting events canceled and land-based casinos closed. Operators braced themselves for a difficult time, but many were able to recoup possible losses. This is the year that eSports began its transition to the general public. As sports bettors found themselves with limited options, esports betting took center stage. The industry has grown exponentially and even when the world opened up, its popularity stuck.
We have also seen more and more operators introduce crypto payments and blockchain games through integration or standalone platforms. Overall, gambling revenues continued to climb during the year, although after a slight decline in the first and second quarters. Overall, it has been a year that has seen a variety of paradigm shifts. The game has become more popular, more diverse and more technologically advanced faster than expected.
What happened in 2021
Fast Offshore has seen a large influx of requests from entrepreneurs to start their own gambling business. Many were interested in cryptocurrency payments and their integration into their sites. We’ve also had a lot of eSports startups, from betting sites to those offering ancillary services.
Latin America has shown promise in terms of regions, as more governments have legalized or taken action to regulate online gambling. As always, Asia was one of the first regions, with Europe remaining stable in terms of growth.
2021 was also the year the FATF graylisted Malta. This means that we have received several requests to move jurisdictions, acquire other licenses or settle in places like Kahnawake and Curacao.
The year to come
2022 is set to be an even better year for the online gambling industry. According to “Gambling: Global Market Opportunities and Strategies Until 2022“The combined online and offline projections exceed the staggering figure of $ 565 billion at the end of the year. This demonstrates a growth rate of nearly 6% on an annual basis.
When we only look at the online game, the picture is even rosier. Figures from Juniper Research suggest that the total value of online betting could reach $ 1,000 billion. The numbers vary depending on where you look, but all show a CAGR of over 10% in overall growth. Based on a 12% CAGR, we can expect the value of online gambling to exceed $ 112 billion by 2025.
As for the engines of growth, we need to be on the lookout for a number of different factors.
Ready to wear
Most of us use or have used wearable technologies such as smartwatches or the like. Many of us also have home assistants or use them on our phones and computers. We expect to see more and more interesting bets using these devices. While they don’t offer a lot of visuals, they do provide convenience.
Especially in sports betting, fantasy sports, and even electronic sports, the use of voice recognition and AI technology is certainly a popular way to bet. While it may not be a major driver of growth next year, we see it as an emerging market to consider.
New payment methods
Consumer confidence in online payment has increased and as a result the demand for payment solutions is greater. Beyond traditional card payment methods, many interesting and innovative options are now available. Digital wallets are now one of the most popular ways to pay online, as are payment processors and integrated payment solutions.
Of course, you also have to watch cryptocurrency payments, especially other coins, not just bitcoins. There are many popular and stable coins that are widely used to buy and spend online. The more payment methods and types you have, the more players you can reach.
Mobile gaming emerges as a major driver of growth every year, but it is the reality. More and more people are turning to mobile, and this is a trend that is not expected to decline or reverse. As more and more people use and get used to mobile, their demands will increase.
User experience, speed, graphics, apps or progressive apps are all things we need to consider in our mobile strategy. Providing your players with the latest mobile gaming technology will give you a competitive edge over those who aren’t.
If your New Year’s resolution is to get your online gambling business off the ground, your best bet is to contact Fast Offshore. We can help you with incorporation, licensing, payments, compliance, and anything else you need to make your new business a success.