Why iGaming Is Primed for Substantial Growth

By Mark Anthony

If COVID-19 taught Americans anything, it’s that you don’t need to leave the house just to have some fun, and the iGaming business has benefited greatly from that lesson. Experts believe that iGaming, the catch-all term for internet gaming, which experienced rapid growth during the pandemic won’t see that growth go away as casinos and other gaming venues reopen to larger crowds. iGaming isn’t just here to stay. It’s here to get bigger.

According to a report by the American Gaming Association (AGA), the iGaming industry might reach $90 billion by 2023. Statista revealed in 2022 that the iGaming market value had reached $59 billion, a rapid growth that’s trending towards doubling within the next twelve months.    

Moreover, the AGA’s recent State of the States report highlighted that iGaming is the fastest-growing form of gambling, even though it is legal in only six US states. Currently, only Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia have legalized online casinos. That said, US iGaming revenues represented 86 percent of what sports betting earned. 

“Sports betting and its mobile form are quickly reaching new markets as more and more jurisdictions seek to legalize the vertical,” reported Yasmin Moore from Gambling News last May. “By the end of December 31, there were 30 states besides DC where some form of wagering on sports was legal. However, sports betting’s fast expansion is barely enough to keep it ahead of the profitable iGaming market.”

Further, Critical Hit Gaming, a news outlet for the industry, predicted even greater growth in the near future.

“The gaming industry has been an unstoppable force throughout the United States of America and across the globe,” wrote Critical Hit’s Phil McAllister this past April. “Without the exponiential growth of iGaming (online gaming), the industry was already grossing a higher revenue than the North American sports and movie industries combined. The market estimated to be valued at $173 billion could exceed $200 billion before 2023, which may double by 2027.”

But while the exponential growth has been attributed to the Covid-19 pandemic, some analysts believe that the potential for additional tax revenue may motivate more states to legalize iGaming.

“It is also worth noting that iGaming has a lot of potential benefits as well,” Gambling News reported last May.” The states that allow online gambling usually impose high tax rates on it. For example, New Jersey requires retail sportsbooks to pay only 9.75% of their revenues as tax. Meanwhile, it requires mobile sports betting and iGaming to give 14.25% and 15% of their revenues respectively. Pennsylvania, on the other hand, requires online slots to share a whopping 54% of their income. These numbers mean that online casino games have a huge potential to contribute to local economies.”

One company that has been benefiting from the increased focus on iGaming in the US is Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), which recently announced its approval by the Pennsylvania Gaming Control Board (PGCB) to operate as a fully licensed iGaming provider in the commonwealth.

“We appreciate the PGCB’s staff members’ diligence in reviewing our license application and thank them for the approval to enter Pennsylvania’s iGaming market,” said BraggChief Strategy Officer Yaniv Spielberg. “Reflecting this license approval, we look forward to completing our acquisition of Spin Games in the next few weeks.  Since announcing the planned acquisition, we have worked closely with the Spin Games team to complete the technical integration between our Remote Game Server (RGS) and their technology platform and as a result, we are ready to begin operating in several U.S. markets very quickly following the completion of the acquisition later this month.”