How much profit did iGaming companies make in 2023 – how to open a website?

BetB2B: iGaming profit in 2023. How to open an iGaming website in 2024?

The gambling and betting market is rapidly evolving, showcasing remarkable growth. According to data analysts, the sector is expected to see continued positive trends, with projections estimating that by 2027, the iGaming industry will generate $131.9 billion in revenue. “This growth is driven by advancements in technology and the increasing number of jurisdictions issuing licenses for legal casino and sportsbook operations,” explains a BetB2B expert, a leading software provider in the iGaming sector.

The iGaming industry is increasingly attracting new brands, and several factors contribute to its appeal. As noted by BetB2B, “The market is evolving positively, driven by various factors that highlight its attractiveness to companies.” Key indicators of this positive shift include:

1. Internet Penetration: With 64.4% of the global population using the internet, as reported by Statista, there has been a surge in traffic to gambling and betting websites, fueling industry growth.
2. Regulatory Changes: The legalization of iGaming in various regions has created a favorable environment for company expansion and the emergence of new brands in the industry.
3. iGaming and Esports: Technological improvements in software and graphics have significantly expanded the audience for iGaming. Esports, a booming segment of the video game industry, has attracted approximately 3 billion enthusiasts worldwide, with projections suggesting this number will rise to 3.5 billion by the end of 2024. This growing interest in Esports is contributing to the overall growth of iGaming.
4. Transaction Security: Modern payment systems offer high security, reducing concerns about gambling-related transactions and building trust between platforms and users.
5. Marketing Quality: Operators and marketing firms in the gambling and betting sector are developing sophisticated strategies to attract and retain audiences.
6. High-Quality Software: Platform providers are delivering advanced software solutions that cater to the needs of new brands, enhancing player experiences and expanding audiences.

Global iGaming Market Overview for 2023

Worldwide Revenue: The global iGaming revenue reached $81.08 billion in 2022 and is projected to grow to $88.65 billion by the end of 2023. By 2027, revenue is expected to hit $125 billion, with an average annual growth rate of 9.1%. Grand View Research forecasts that by 2030, profits will soar to approximately $583.69 billion.

Regional Insights

• North America: The U.S. iGaming market is anticipated to generate $25.22 billion by the end of 2023. With a compound annual growth rate (CAGR) of 12.7%, revenue is projected to reach $39.78 billion by 2027. Online betting alone is expected to contribute $9.95 billion, making the U.S. a leader in iGaming revenue for 2023. The average revenue per player in the U.S. market is estimated at $346.30, with the number of players expected to grow to 105 million by 2027. The U.S. accounts for 14.3% of the global iGaming market.
• Europe: Europe’s iGaming market generated $43.01 billion in 2023, with projections estimating growth to $53.58 billion by 2027. Casino revenue alone for 2023 is $19.20 billion, with an average income per player of $820. Europe is noted as the fastest-growing region in the iGaming market.
• Asia: The Asian iGaming market saw revenues of $10.4 billion in 2023, with an annual growth rate of 7.95%. By 2027, profits are expected to reach around $14.23 billion. Online betting revenue for 2023 is $6.74 billion, and the number of players is projected to be 41.81 million by the end of 2027.
• South America: South America’s iGaming revenue stood at $4.25 billion in 2023, with forecasts predicting an increase to $7.38 billion by 2027. The average income per player in the region is $526.50.
• Africa: In Africa, iGaming profits reached $1.62 billion, with an annual growth rate of 8.60% projected until 2027. Forecasts suggest profits will rise to $2.26 billion by 2027.

BetB2B: Starting an iGaming Website in 2024

The booming iGaming market presents exciting opportunities for new ventures in sports betting and casinos. “Launching an iGaming website requires a well-thought-out action plan, strategy, and a clear understanding of the final product,” advises BetB2B. The optimistic forecasts and robust statistics underscore the potential for significant profit in this expanding industry.

Before entering the active phase of launching an iGaming business, it’s crucial to address several priority tasks to set a strong foundation. Here’s a streamlined guide to ensure a successful start:

1. Licensing

Securing the appropriate license is a fundamental step in establishing a legal and reputable iGaming operation. Each jurisdiction has its own set of rules and requirements, including financial solvency and a commitment to responsible gaming practices.

Key Considerations for Licensing:

• Prestige of the Jurisdiction: Opt for a jurisdiction known for its robust regulatory environment.
• Licensing Requirements: Understand the specific criteria and compliance measures required.
• Cost and Duration: Evaluate the financial implications and the time frame for obtaining and maintaining the license.
• Tax Fees: Consider the tax obligations associated with the license.

2. Budgeting

A well-structured budget is essential for both the initial launch and ongoing operations.

Initial Costs:

• Licensing Fees: Costs associated with obtaining and maintaining your gaming license.
• Software: Investment in the necessary gaming software and technology.
• Website Development: Costs for designing and building the website.
• Branding and Marketing: Expenses related to creating your brand identity and promoting your business.
• Consulting Services: Professional fees for expert advice and guidance.

Operating Costs:

• Website Maintenance: Regular updates and technical support.
• Employee Salaries: Compensation for your team.
• Marketing Expenses: Ongoing efforts to attract and retain players.
• License Renewal: Fees for renewing your gaming license.

Additionally, set aside a contingency budget for unforeseen expenses.

3. Platform Selection

Choosing the right platform is crucial for your iGaming site’s functionality, user experience, and overall success.

Options Include:

• Custom Development: Building a platform in-house, which requires significant time, expertise, and investment.
• Ready-Made Solutions: Opting for a comprehensive, pre-built platform that offers advanced features and reliability.

Essential Features for a Successful Platform:

• Intuitive User Interface: Ensuring ease of navigation and usability.
• Mobile Optimization: Compatibility with various mobile devices.
• Payment Options: A wide range of secure payment methods.
• Security: Robust measures to protect user data and transactions.
• Technical Support: Reliable support to address any issues promptly.

“Modern iGaming platforms are continually evolving with innovations. A ready-made solution often benefits from the latest advancements and updates,” says BetB2B.

4. Understanding the Target Audience

To maximize success, it’s vital to understand and cater to your target audience.

Research Areas:

• Demographics and Preferences: Study the demographics, regional betting preferences, and player motivations.
• Regional Specifics: Adapt your platform to regional tastes, such as football in Europe, basketball in the U.S., and cricket in India.
• Competitor Analysis: Identify key market players, analyze their strengths and weaknesses, and use these insights to refine your strategy and differentiate your offering.
• Market Trends: Keep track of emerging niches and technological advancements. “Early adoption of new trends can give you a competitive edge and boost player interest,” notes BetB2B.

5. Online Presence

Maintaining an active online presence is crucial for engagement and growth.

Key Actions:

• Social Media Management: Regularly update and interact with your audience on social media platforms.
• Content Creation: Share engaging content, such as interesting facts, promotional announcements, and updates about your business.
• Building Trust: Effective communication and consistent updates can enhance trust and attract new players.

By addressing these core areas effectively, you can lay a solid foundation for a successful iGaming venture and position yourself well in the competitive market.

Material provided by BetB2B, a software provider for iGaming.

Author: Glen Martin