The iGaming industry has seen an exploding rise in revenue in the past few years. New avenues are being opened daily, and the constant advancement of technology is paving a path for the gaming sector to reach even greater heights in the upcoming future as far as market value is concerned.
That being the case, this is a great time for investors to start pouring in cash into this exciting and quickly developing space. But before you jump in with both feet, let’s take a look at what makes iGaming a potentially lucrative investment opportunity.
What Is iGaming?
iGaming is an industry that encompasses all forms of online gambling. Sports betting, poker, and bingo all fall under this term. For many consumers, the most distinct advantage online gaming venues have over their land-based counterparts is accessibility and convenience.
The driving force behind iGaming is, of course, the casino operators. However, plenty of other businesses work in tandem with gaming brands to provide users with a unique experience. That includes software developers, casino affiliates, licensing organizations, financial institutions, and other similar service providers.
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How Was iGaming Affected by the Pandemic?
Much like other industries, iGaming has been affected by the COVID-19 pandemic to some extent. Sectors like marketing and supply chains in the gaming sector might have been impacted by the virus, while some areas have benefited and others struggled.
By and large, iGaming has been one of the few industries that have actually thrived during the lockdown. Due to the restriction measures, casino-goers around the world are forced to seek refuge online. As a result, all game segments are seeing an increase in revenues and player engagement.
How to Invest in iGaming?
For those willing to invest, iGaming provides a plethora of opportunities. Here are some niches worthy of consideration:
- Online casino stocks — Many top-tier iGaming brands are publicly traded, as evidenced from this 888 casino review. Investors can buy shares in major corporations such as 888 Holdings, Leo Vegas, or the Stars Group and participate in the company’s growth.
- Game supplier stocks — If you find it more profitable, you can also buy shares in software developing companies that produce games for casino operators. These include NetEnt, Microgaming, IGT, Yggdrasil, and Play’n GO, to name but a few.
- White label solutions — Another alternative way to invest in the iGaming space without buying shares in a specific brand is through B2B software service developers. These companies provide a range of software solutions for gambling sites, including front-end user interface, backend software, data analysis, odds compiling, and general advising services. Noteworthy investment options in this regard include Kambi Group, Aspire Global, SoftGamings, and so forth.
- Gaming ETFs — To invest in iGaming on a larger scale and secure broad industry coverage, then ETFs are the go-to option. HERO, NERD, ESPO, and BJK currently rank as the best gaming ETFs.
- Technology — Without technology, iGaming wouldn’t exist. The advent of mobile devices and other technological innovations have propelled iGaming to the world’s fastest-growing sector. Emerging technologies are constantly being developed to make online gaming more immersive and attract a wider audience of players. On the grounds of this, investors can start backing new and upcoming tech facilities linked to gaming sites.
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Final Thoughts
Investing in iGaming should be a no brainer at this point. The online gaming market offers fantastic investment opportunities, and in all likelihood, the industry is going to expand at an incredible rate in the next decade or so. The sector rakes in record profits year in and year out, and as more countries begin to legalize the pastime, there’s no doubt that the growth will only continue from here.