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Study Sees Bitcoin-Dollar iGaming Industry By 2020

Study Sees Bitcoin-Dollar iGaming Industry By 2020

Aerol in Bitcoin Gambling published on 7, October 2016

Several reports by gambling experts project huge growth for the US online gambling industry. They predict that the total revenues from the market will manage to reach $4 billion by the time 2020 comes around, though more conservative estimates put it at $2.7 billion.

This includes revenues in all online aspects, including sports betting and online lotteries. That is a lot of growth for an industry in only four years’ time, considering that New Jersey accounts for 90 percent of the online gambling industry in the country at revenue of only $150 million.

Though a lot of people associate the US as an online gambling giant, the country is only ranked as 8th in the online gambling market. The truth is, the US trails behind countries like China, the UK, Australia, France, Italy, Germany and Spain.

Expected Total Revenues of US Online Gambling Industry

The slow spread of online gambling in the US is thanks to the passage of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), which outlawed all forms of online gambling. However, the state of online gambling is starting to change as the US starts to open up to online wagering.

Contributing factors

There are several factors that experts point to as contributing to the changing fortunes of the US online gambling market. The first is the easing of government regulations. Back in 2012, a new law was passed that allowed individual states to license online and mobile casinos, sportsbooks, and poker sites within their borders.

Only three states have used the opportunity, but there are hints that other states are soon to follow. Next is that legalized online gambling results in increased tax revenue. In a cash-strapped economy, that is sure to interest a lot of states. This may encourage them to set up their own online casinos. With an increase in online casino, this can only mean a bigger US online gambling industry.

Finally, online gambling has a wider reach than offline gambling. With the increasing popularity of computing and mobile devices, a lot of people have access to playing at an online casino. This changes the demographics of the players, as Ujjwal Doshi, a lead analyst at Technavio for media and entertainment services research explains:

“In the US, the average age of an individual visiting a casino is 45 years, whereas the average age of an online gambler is 34 years. The increasing presence of younger population on the online gambling platforms will be one of the significant factors driving the growth of the market during the forecast period.”

Bright future

Most predictions now put 51-percent compound growth rate of US online gambling by 2020. This means that the industry would be growing by half every year, which is an impressive rate of growth. Further analysis puts internet sports betting contributing a large part to that growth at 60 percent CAGR. As more and more states legalize online gambling, these figures can be expected to snowball.

Unlawful Internet Gambling Enforcement Act  of 2006

One of the factors that could further push the expected figure is the further rise of Bitcoin gambling. More online casinos have started to include Bitcoin to their accepted payment methods, and separate from these are the Bitcoin casinos that already do well in the niche market.

Adding the push from the Bitcoin gambling sector will only catapult the online gambling industry in the US to reach greater heights, possibly even higher than what has been predicted by 2020.

 

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