There's no doubt online casinos and betting sites have been among the fastest-growing online markets in the last decade. According to the latest statistics, the global online gambling market will be worth more than 92.9 billion U.S. dollars in 2023.
The convenience of online gambling is, of course, the key driver in the exponential growth of this industry. But besides the fact that players can gamble from the comfort of their sofas, several other factors have contributed to the growth of the online gambling industry. Technological advancements and the pandemic have played a big part.
Technology has been at the heart of the online gambling industry. Today, online gambling companies invest heavily in technology to enhance the user experience. Experts say digital companies, including gambling sites, will aim to drive experiences and optimize operating models by shifting 70% of their expenditure to technology by 2024.
Three of the most fundamental technologies that are shaping up the online gambling industry are Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR).
Artificial Intelligence is playing a pivotal role in the online gambling industry. It remains an invaluable addition in many avenues.
The first is Responsible Gambling. Operators are leveraging AI to identify problem gamblers to take the necessary measures to help them manage compulsive behavior. With AI, it's possible to constantly scan key gambling data points, cutting across players' demographics, behavioral data, and transactional data to profile players who might be hooked on gambling.
Besides responsible gambling, AI plays a huge role in enabling operators to offer players deeper personalization. Today, online casinos, especially the new casinos, offer live and deeply personalized content in real-time. It also offers players the games they like and realistic humanlike support.
AI also enables operators to actively manage the customer lifecycle, manage cash flow more efficiently, and enhance fraud detection efforts.
On the other hand, Virtual Reality and Augmented Reality are on the frontline in enhancing the customer experience. While Virtual Reality and Augmented Reality may sound similar, the two are different technologies, but they all aim at giving players an authentic casino experience. The two technologies target Gen X, Y, and Z players majorly.
Although VR came before AR, it's the latter that will undoubtedly shape the online gambling industry as it is a player-centric technology that inserts virtual objects, for example, casino tables, into the real world. Besides offering a better experience, players don't require any accessories, as is the case with VR.
Even though the pandemic is not something to smile about, it has been a blessing in disguise for the online gambling industry. Research has shown that online gamblers were six times more likely to gamble after the pandemic than before the start of the pandemic.
This surge in player numbers can be attributed to the lockdowns and remote working. Everyone was at home, glued to the internet. On the other hand, operators were busy focusing on marketing.