While the iGaming industry has experienced significant growth in recent years, the same cannot be said for the traditional brick and mortar casino. Many physical casinos around the world have reported declines in attendance and revenue with others having to close entirely.
The Growth of iGaming
The marked growth that the iGaming industry is experiencing can be attributed to a number of factors: the increasing availability of high-speed internet, the widespread adoption of smartphones and tablets, and the relaxation of regulations and laws in many countries.
One of the main drivers of iGaming growth has been the proliferation of online casinos and sports wagering platforms. These platforms offer players a wide range of games and wagering options, allowing them to play from the comfort of their own homes.
Playing a poker game online is now as easy as a few clicks of a smartphone, and players can be instantly connected to a lobby of evenly matched opponents from elsewhere in the country or the rest of the world. In addition to traditional casino games like slots, roulette, and blackjack, many iGaming platforms also offer live dealer games, where players can interact with a human dealer via video feed.
While this technology has been around since the mid-1990s, it’s only recently that consumers could stream high-quality video feeds directly to their mobile devices. Live casino has helped create a more immersive and engaging experience for players, and with accompanying chat rooms has reclaimed some of the social aspects that are sometimes missing from the iGaming experience.
Another key factor has been the increasing popularity of esports wagering. As competitive gaming has grown in popularity around the world, many iGaming providers have started including popular esports tournaments and events on their books. This has helped to attract a new generation of younger players who are interested in both traditional gaming and iGaming.
The Decline of the Real World Casino
The number of casinos in operation across the USA peaked in 2016 at 524. Since then, that number has fallen by over 10% to 466. The primary reason for the closure of brick-and-mortar casinos is the increasing competition from online casinos and iGaming operators.
With more and more players opting to game online, physical casinos have struggled to attract new customers and retain existing ones. Online services have the advantage that a stable internet connection is the only prerequisite to play, whereas some of those players may be unable to travel to a physical casino.
Young players also display a marked preference for online gaming over gaming in person. Millennials and Gen Z have grown up with technology as an extension of themselves and find digital casino alternatives more intuitive and convenient. Casino venues continue to struggle to attract young players to their businesses and their patrons are becoming increasingly older.
While the iGaming industry has experienced significant growth in recent years, the traditional brick-and-mortar casino industry has faced challenges. Some casinos have adapted to the changing landscape by incorporating iGaming platforms and technologies into their business models, which may help to mitigate the decline in attendance and revenue.
The Future of iGaming
The casino industry has consistently been an early adopter of new technologies. In a sector as competitive as the one in which they operate, it’s a necessity – the consequence of not being forward facing is to be left behind and, ultimately, certain failure.
One area of technology tipped for impressive growth in the future is Virtual Reality (VR) and Augmented Reality (AR). VR and AR have grown significantly in recent years, with advancements in technology and increased consumer interest driving their development. (https://allproshadeconcepts.com)
Alongside the rise of smartphones, and powerful computers and consoles, consumer-grade VR technology has become much more accessible and affordable. Today, there are a variety of VR systems available on the market, from high-end systems like the Oculus Quest 2 and HTC Vive to more affordable options like the Samsung Gear VR and Google Cardboard.
Casinos have already begun to stake a claim on their own corners of the VR and AR market, developing fully operational VR casino experiences that can be accessed from anywhere in the world. A VR or AR casino could see avatars of different players interacting and playing alongside, or against one another in a world with no physical constraints. The overheads of maintaining such a place are significantly lower than prime real estate on the Las Vegas Strip.
The iGaming industry has grown rapidly in recent years, with new platforms and technologies continuing to emerge. As more countries legalize and regulate online gaming, it is likely that the industry will continue to grow and evolve in the years to come.