The surging popularity of social casino games has been evident to industry insiders in recent years, but there is now data detailing the power and scope of that surge.
A recent industry projection from researchandmarkets.com estimates the global value north of $9 billion by as soon as 2027, with explosive growth spurred by myriad factors.
Among the leading factors is the rapid North American market ascension. Notably, online gaming continues to gain not just legal but also social acceptance as a viable form of entertainment. This gradual de-stigmatization, paired with increased ad spend, and anticipated state-by-state growth in the coming years could land the total industry value at $9.25 billion.
A Perfect Storm Rockets Online Casino Value
Like online sports betting, online casino sites have rapidly cemented themselves in mainstream culture.
As the report notes, a widespread shutdown in early 2020 due to COVID-19 restrictions ignited a natural increased interest in online games. Whether it be paid games, currently available in five states, or free-to-play games which are far more readily available across North America, options like slots, bingo, and poker have become natural fits for players across all demographics.
Faster wireless connections, the evolution and growth of smart devices, and tech growth are each contributing factors to the boom, and such improvements and growth has naturally made big ad spend across various mediums pay off.
As the current industry checks in around $7.26 billion, a near $2 billion growth over four years would represent a 6.24% annual growth rate.
An Obvious Opportunity for Online Casino Growth Lies Ahead
Such a substantial growth rate isn’t hard to envision, but it will be dependent upon just how willing several of the 45 states that have yet to greenlight legal real-money online casino games are to get things live. Notably, only New Jersey, Pennsylvania, Connecticut, West Virginia and Michigan currently offer such platforms.
Recently, there has been increased optimism about an eventual switch flip in states like Illinois and Indiana. In any event, most industry professionals believe it’s all just a matter of when for a number of highly-populated states, with some suggesting a 10-year run of gradual state launches and expansion.
One potential roadblock for the growth of user acquisition could come via increased regulatory pressure on operators to implement both thorough and overt responsible gaming language in advertisements.
Offers headlined by massive dollar amounts, free bets, and risk-free play have been largely eliminated by major operators like FanDuel Casino and DraftKings Casino in recent months. Still, while the enticement of such advertising may be a bit muted, it is increased caution and care that could ultimately help casino gaming get a go-ahead and gain both trust and acceptance along the path to expansion.
Confidence in how such forthcoming markets will perform is not unfounded. Consider that many states already boast robust online sports betting markets. Given the appetite for casino has outweighed sports betting in the five which offer both, expectations aren’t propped up by hope, they’re fortified by established user data.