2020 was a period of positive growth for the casino industry. According to statistics, the compound annual growth rate is 10.8%, with profits expected to rise from $465.76 billion in 2020 to $516.03 billion in 2021. While fewer people attended brick and mortar casinos across the world, there was an increase in the number of players taking to online games, with online slots becoming highly popular.
Interestingly, the region of highest growth in the casino market across 2020, was Asia Pacific. APAC accounted for 38% of all global market activity, while North America accounted for 29% of activity. Propelling this growth, was an increased demand for casinos apps and social casinos platforms.
This demand is fundamentally driving the growth of new technological innovations that will propel the cassino market across 2021. Let’s take a look at what the top trends are set to be.
An increase in online casino providers
While the online casino market is already highly saturated, the annual turnover of this sector of $53 million per year, means that investors are very keen to carry on investing. With a low barrier to entry, new providers are able to set up an online casino site with relative ease.
What’s more, with numerous off-shore tax loopholes, providers are able to register their business offshore and benefit from lower or no taxes, in addition to more flexible laws around global operations. There is a particular rise in the amount of offshore casinos providing services to US and Canadian residents as demand there continues to grow.
However, as US and Canadian laws become more tolerant and inclusive of online casinos, we are beginning to see more and more online providers pop up inside North America. That being said, land-based casinos on Indian reservation land are still incredibly popular.
One of the benefits consumers can expect to see from this increase in competition on the market is a rise in the number and types of bonuses available. From free spins to mini-games, in-game bonus rounds and exclusive sign up credits. In addition, more players means larger jackpots and better odds being offered by casinos for sports iGaming.
New Crypto payment technologies
Crypto payment technologies introduce a number of benefits to online casino players. Crypto payments involve the exchange of cryptocurrency such as Bitcoin, in exchange for the services – the same way that we pay by Card or by a third party. The difference is that cryptocurrencies are not controlled or regulated by a central bank.
Some of the benefits of cryptocurrencies include increased privacy for players when making online transactions. Since cryptocurrency is operated by blockchain technology, it is harder to trace these payments, meaning clients have more anonymity.
What’s more, removing banks from the process means that there are less likely to be transfer fees associated, particularly if you are using an offshore casino. Players are able to keep their cryptocurrency in a secure online wallet and generally have more freedom over where they can use it.
Similarly, Cryptocurrencies offer a more transparent approach to casino operations to ensure fairness.
Enhanced gaming features
Throughout 2020, we also saw the development of enhanced gaming features, from new slot machine software technologies, to enhanced graphics and superior audio quality. Games such as Rainbow Riches are now among the world’s most popular online video slot franchises and demonstrate just how much games now have to offer.
In particular, Rainbow Riches offers the potential to land a 500x multiplier that significantly boosts winnings, as well as enabling you to win 500x the sum of your bet on the Pots of Gold.
In addition to slot games, poker has also ramped up it’s online game. Many sites now offer a live dealer, bridging the gap between the physical and online world. This enables players to benefit from the increased benefits and convenience of playing online from home, while still getting that real human interaction.
Top casino stocks to keep an eye on
Over 2021, we can also expect to see a tremendous lift in online casino stocks. Some of the best to keep your eye on include Las Vegas Sands Corp. (LVS), Wynn Resorts Ltd. (WYNN), and MGM Resorts International (MGM). One of the key differentiators that ensure the growth of the casino sector is that many organisations operate group entities to strengthen their portfolio. Such offerings include casino resorts, hotels, racetracks and ski resorts around the world.
Over the past year, statistics show that investors have seen an average 14.2% return. MGM Resorts International, which is currently the top performer in Casino stocks, offers a rich and varied portfolio from dining, retail and entertainment venues, to hotels and casino resorts.
Overall, while the market has faced its challenges over the past year, the casino sector seems to be thriving, particularly in the digital world. As the online sector continues to see more and more competition, we can expect to see improved offerings for players, including more bonuses and enhanced in-game features that provide a better overall experience.
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