iGaming Revenue Booms Post Pandemic

Several industries worldwide felt the huge blow of the last couple of years and are still adapting. Every business depending on in-person operations was shaken to its foundation. Meanwhile, online iterations intensified more than ever before.

Still, the iGaming industry was no exception and slumped in the UK in 2020. Yet, everything is looking up now: the sector is thriving again, and it’s expected to keep growing until 2030, at least, globally.

What’s behind such optimism?

Together, Yet Apart

The internet played a decisive role in the pandemic for numerous branches. Even healthcare and social security, among other public services, had to move online. Not to mention schools, universities and pretty much every office job. Since 2020, a considerable proportion of our lives have been happening online.

With bars, clubs, theatres and casinos closed, the entertainment industry also moved online. So, gaming platforms, online casinos and sportsbooks, bingos and whatnot boomed during the period. Anyway, the industry couldn’t dodge the first hit. In 2020, the gambling revenue dropped by almost a third compared to the previous year.

Both modalities were hit quite differently. Still, these numbers include online and in-person options. Land-based casinos and sportsbooks were devastated by successive lockdowns. The cancellation of top sports events also shattered countless betting opportunities.

Different Realities

While brick-and-mortar casinos went on freefall, the online part of industry faced different circumstances. The sector increased its tax revenue by 25% in the same period, making almost a third of the funds collected that year by the HM Revenue and Customs. Yet, the future looks even brighter for online casinos in the UK. Projections point to a 60 million Pound increase in the online gambling market by 2024.

Since 2020, the demand for live dealer games has also increased, perhaps filling the gap of the brick-and-mortar experience. Such a trend will remain for the foreseeable future, as better internet and mobile devices allow live gambling on the go. Mobile gaming is partially responsible for such positive numbers, as it also increased in 2021, and it’s also on an upward trajectory. So, British gamblers and gamers alike have a lot to look forward to.

However, the concept of iGaming is much broader than online casinos and sportsbooks. Although the term refers to online gambling and betting, it’s paramount to remember that it includes video games and esports. This niche, too, is looking up.

The UK’s esports sector represents about 8% of the worldwide market. Indeed, the country is on a fast track to becoming a global reference in tech innovation and creative industries. Companies like BMW have already joined the game, sponsoring the London-based Fnatic, a global leader in esports.

Challenges Ahead

Such an expressive growth didn’t pass unnoticed by the UK Gambling Commission (UKGC). In 2019, the UKGC implemented stricter rules for age verification and prohibited credit cards as deposit methods. The rules aimed to curb excessive gambling and other gambling-related problems.

Notice that we’re talking about pre-pandemic times when this market was considerably different. The UKGC is unlikely to take a more relaxed approach now. There’ve been talks about restraining some casinos games. We can also expect new licences for specific games, as it already occurs with poker. Some online brands have already paid hefty fines for failing to meet new standards.

Despite the global crisis, the future looks promising for the British iGaming industry. More platforms and developers will be joining the market. The esports sector is also on a steep rise and has already made its way to the main online casinos and sports betting apps. Besides, this niche is expected to breathe fresh air in the industry, bringing younger players to the online gambling world.

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