A decade ago, investing into the online gaming industry and its affiliates would have been nearly impossible or a considerable risk. But in 2021, the online gaming industry, along with its affiliates, has flourished and is shaping up to be a profitable investment.
Despite the first online casino launching in 1996, the online gaming market has taken time to grow as it navigated legislation in order to become a regulated industry. But as countries began to legalize online gaming operations, the online gaming market showed its true potential—raking in significant revenues worldwide on a year-to-year basis. Recently, the American Gaming Association reported that the U.S. commercial gaming revenue for Q2 2021 has set a record of $13.6 billion and is projected to be the “highest-grossing year ever for commercial gaming revenue.” Out of the $13.6 billion, online gaming brought in $901.2 million, a significant increase when compared to the previous two years. The continuously growing revenue of the worldwide online gaming market has become an attractive item for potential investors.
Two of the main players in the online gaming market are: online gaming operators and payments processing companies which focus on iGaming and sports wagering. DraftKings, an American daily fantasy sports contest and sports betting operator, recently became a publicly traded company. Since it became a publicly traded company, DraftKings’ stock continues to rise due to its market growth and popularity. The Motley Fool reports that according to a research firm, DraftKings “has roughly a 30% market share of U.S. online betting.” DraftKings has become one of the most prominent online gaming operators in the United States—going on to acquire Golden Nugget Online Gaming, and becoming the official sportsbook for several sports teams and companies. DraftKings has shown the rising potential of the online gaming market.
Alongside with online gaming operators, payments processing companies which focus on the iGaming and sports wagering industry are also becoming very profitable. Recently, payments processing companies have become increasingly popular. Payments processing companies play a big role in player acquisition and retention which is a key element for online gaming operators—the fastest and most secure payment option is a win for operators and consumers. Nuvei has been a prominent leader in the payments processing space. They recently acquired Mazooma, which focuses on bank-to-bank transactions in the iGaming and sports wagering space. With this acquisition and stellar results Nuvei’s stock has grown 13 percent this month alone, showing that payments processing companies show good promise in the online gaming market.
Due to its revenue increases and popularity, the online gaming industry is one to watch out for. According to Statista, “The global online gambling market is anticipated to be valued at more than $92.9 billion U.S. dollars in 2023.” So whether it is an online gaming operator or a payment processing company, the online gaming industry has and is continuing to show its potential to prospective investors who aren’t afraid of a good gamble.