In recent years, the gaming industry has been met with tumultuous developments. Gaming revenue of land-based hubs fell 31% in 2020 in the USA, the lowest since 2003, and similar patterns were noted in various gaming capitals around the world.
In light of these losses, other variables in the gaming industry have been working overtime. The growing adoption of mobile devices and increasing internet penetration has driven the market growth for online gaming. The global gaming market currently sits at a CAGR of 59.7%, expected to grow from $287.43 billion in 2021 to $458.93 billion in 2022.
As 2022 draws closer to an end, estimating the trends of 2023 will be key in determining growth within the gaming industry. Here’s what we know so far.
Rise of digital gaming
The market growth for online gaming stems from its flexibility, convenience, and safety. There is an increasing trend of remote activities, and the gaming industry has been quick to cater to this demand with the boom of gaming applications and online platforms.
This response has also been driven by external factors. Supply chain disruptions continue to slow the delivery of slot machines and other gaming products. Manufacturers have taken steps, like repurposing commercially available components in an older game, to alleviate delivery slowdowns.
However, new challenges like the availability of truck drivers and other laborers continue to appear. Studies predict a global worker shortage until 2030 and we can expect efforts in the digital industry to compensate for any losses from the land-based sector.
Questions within legislation
Poker legalization is complex and while land-based gaming may be difficult to monitor, state policies like MSIGA in the USA have emerged to focus on online gaming. However, given the current state of the industry, and in order to combat the severe drops in revenue in 2020, other countries like Germany and their Glücksspielstaatsvertrag have opted to legalize online gaming. This could mark a sea change in online gaming legislation.
Attaining sustainable gaming tax revenue is also why more legislators are looking at the recent exponential increase in cryptocurrency popularity. Virtual coins are already the main form of funds at some online gaming sites like Americas Cardroom, and cryptocurrency doesn’t fall under the Interstate Wire Act of 1961 in the USA.
This bans banks from processing online wagers outside of states with legal poker sites in operation — meaning that with crypto, legalizing poker is a reality that many gaming enthusiasts are anticipating.
Advances in gameplay
Thanks to the latest developments in technology, gamers can enjoy more immersive ways to play with virtual reality and metaverses. In Decentraland, visitors can explore the virtual space with their self-created avatar and play for a chance at crypto wealth. This will help streamline the full integration of blockchain in the gaming industry.
Simultaneously, accessibility to gaming will grow — to the point of revisiting discourses on regulation and legislation. That’s because playing virtual poker where no money changes hands is treated as a mere video game. This has redefined the standards for player protection, and major companies behind virtual casinos like Pokerstars VR continue to invest to regulate gateways while sustaining its benefits.
2023 will be a year of more opportunities for the gaming industry. To stay up-to-date with the latest gaming news, check back at BusinessMilestone where we cover every aspect of business news.
