Despite it being around for centuries, the gambling industry has been rapidly expanding in recent years, with the industry projected to grow to US$114bn by 2028, an 86% increase since 2021. This rapid expansion is the culmination of several factors, including technology, liberalism and economic incentives, among others. To understand exactly why the gambling industry has undergone such rapid growth, we’ll explore its evolution, the external forces that have shaped it and its future.
Gambling in itself is nothing new, in fact, it is one of the oldest activities known to mankind, dating as far back as 2300BC, almost 1700 years before any country introduced actual currency. There are biblical references to the casting of lots to divide properties, as well as ancient texts that refer to people throwing marked sticks and stones to seek answers from the gods about their futures.
Historically, gambling has always been controversial, with on-and-off bans throughout the centuries attempting to regulate a wildly popular activity. Lotteries and legal gambling houses appeared in the 17th century and by the 18th century, sports betting had begun to take off.
While gambling as we know it today has developed into something much more sophisticated, it is interesting to understand its origins and humble beginnings in the context of its growth.
Thankfully, in the 21st century, we no longer need to cast lots to divide property, and gambling is now for entertainment purposes only. This evolution is thanks to a number of factors, which include:
Undoubtedly the largest driver of gambling’s expansion in recent years is technological advancements. These have produced a number of improvements, including:
With the millennial and Gen Z generations fast edging out previous generations, there is a more relaxed attitude not only towards life in general but gambling too. While previous generations may be stuck in the past and still see gambling as something taboo, the more liberal and open-minded generations of today don’t share the same condemning views. They understand that the industry is heavily regulated and that safeguards have been put in place to prevent problem gambling.
Gambling is one of the most profitable industries in Canada, providing a number of economic incentives for the government and businesses, including:
As we mentioned above, gambling has been legalized in most countries. While it is heavily regulated, being more widely legalized has made it more accessible for most people around the world. Previously, in order to gamble, people may have needed expensive VPNs or other methods to participate in online gambling, whereas once legalized, it becomes much more convenient for people to gamble.
The gambling industry is set to continue to evolve in the coming years, largely fueled by technology. We expect to see a sharp increase in crypto casinos, built with cutting-edge blockchain technology and accepting digital currency as their primary means of payment.
Augmented reality and virtual reality will feature more prominently, and we may see entire online casinos dedicated to AR gambling in the future.
AI will continue to create a much more personalized gambling experience for players, with streamlined KYC processes, real-time chatbot assistance, problem gambling detection systems and personalized recommendations becoming the norm.
With gaming not showing any signs of slowing down, we also predict that esports betting will continue to grow in popularity within the sports betting sector.
Gambling is no longer the taboo topic it once was, especially with the advent of sports betting and online casinos, thanks to advancements in technology. With gambling being a more widely accepted pastime and many safeguards in place to prevent gambling addiction, it is no wonder the industry has grown so rapidly.
