Online slots have seen a steady growth in the past couple of years. Today the global market size of online gambling is around $56 billion. Out of which, a significant portion belongs to the online slot industry. In spite of the current economic slowdown, this market cap is only expected to rise.
How much growth will online slots see in this year? Now that’s a toughie to answer. After conducting hours of research, our team of expert professionals have tried to predict this figure in this article. So stay tuned with us to know more on this subject.
The Past Records
Online slot is comparatively a newer concept which saw a rapid rise in the past decade. Since 2011, online slots have seen an average CAGR of 9.7% till 2019. This number is truly impressive considering how less effort and capital require to set up an online casino compared to a traditional one.
This envious growth has pulled more and more operators each year. Back in 2018, when pundits thought the online slots market is headed towards a saturation point, it recorded 8.5% growth that year. This data clearly shows how much potential is still there for online slot parlours.
The Present Situation
In the year 2020, experts predicted a median growth of 8.77% for online slots as the whole iGaming industry was expected to reach $59.6 billion from last year’s $53.8 billion. But then, Covid happened and it turned the global economy upside down.
All the major economies in our world are facing an unexpected slowdown. Businesses are being shut down and many people are being forced to go jobless. This scenario is a real challenge for all types of online gambling forums including the live slot ones.
The Future Prediction
As half of the year already went by, we can safely say the targeted 8.77% growth will not be achieved this year. Our experts predict the real number to stay between 4%-5% at the end of the year. It’s really difficult to do any long-term future prediction as humanity has never faced such a crisis before. We don’t know how long this virus thing is going to stay and how long before we see regular economic expansion.
However, this global pandemic can be a blessing in disguise for online gambling sites. As maintaining social distance by staying at home became the top priority for us, it can bring a huge pool of new customers to online slots uk sites. People, who usually visit brick and mortar casinos to get their hands on slot machines, will now prefer to play slots from the safety of their home. If the live slot site operators can grab this golden opportunity with both hands, then a bright future is waiting for online slots.
2020 and Beyond
It was forecasted that the casino industry is set to make a global revenue of $525 billion till 2024. A large portion of this revenue belongs to online gambling and live slots. Our experts say a downfall of traditional casinos is on the horizon. At the same time, live casinos will come up as a rightly-equipped alternative.
This is because of the current situation as well as technological advancement. The rise of VR is going to make online slots more appealing to the players. Also the introduction of hybrid games and augmented reality will play a massive role moving forward this decade. Numerous land-based casino operators have seen the future profitability in online gambling thus setting up an online counterpart to grab some market share in the virtual space.
Everyday more people are getting connected with the world as the internet expands worldwide. This creates new user bases for online slots everyday. Right now, Europe is the largest market for live slots, closely followed by North America. However, when the sleeping giant Asia awakes, countries like China and India legalise live gambling, we will see many records being shattered.
Presently we’re experiencing a difficult time in terms of business growth. However, no pandemic can stop the expansion of the online slot industry in the coming decade. It’s only a matter of time before online slot revenue overtakes their mechanical counterpart’s revenue.