Is the iGaming Market A Wise Investment in 2021?

There’s no doubt 2020 was an unbelievable year for iGaming. The coronavirus pandemic had a huge impact on every form of business throughout the world and a look back on iGaming stocks across the last 12 months gives a good indication of the impact on that industry.

One glance at the stocks of some of the leading land-based casinos shows they struggled throughout 2020. That why it came as little surprise given the fact many of them were forced to close their doors for a significant period of time.

For example, Las Vegas Sands and Wynn Resorts both underperformed and lost value in 2020 whereas many online gambling brands, such as DraftKings saw their value increase throughout the year.

In fact, DraftKings grew to over triple their value in 2020, which is incredible.

The fact so many people were forced to stay at home and find forms of entertainment indoors, played a leading role in the surge in popularity of iGaming.

Using the example of casinos as above, with so many land-based casinos closed, gamblers turned to the top online casinos for their gaming fix.

Macau, which is renowned around the world as being one of the best places for a gambling holiday was forced to close its doors in February 2020 and has yet to really recover. In fact, the gambling revenue in Macao was down 79.3% for the year.

With people unable to visit their favorite casino destinations, it led to an increase in the number of people using iGaming as a form of entertainment, with many people turning to online casinos for the first time in their life due to the pandemic.

In terms of the US, how online gambling stocks continue to perform will depend greatly on the states which are considering making online sports betting and gambling legal.

For many states who have lost a significant chunk of revenue due to COVID-19, providing the opportunity for legal iGaming is now looking a great way to bring in some much-needed funding in 2021.

However, the reopening of casino resorts in 2021 is going to have an impact on the success of online gambling. You may want to tread with caution in terms of online casino stocks.

That’s not considering the rollout of 5G which could further transform the iGaming industry. This will make playing online games, especially on mobile devices, like nothing we have ever seen before.

Even the most demanding of multi-player online games will flow smoothly, with no interruption. Offering significantly lower latency and faster downloads than 4G, 5G is actually 20 times faster than 4G.

Latency will be extremely low and this is hugely important for iGaming, where every second count.

5G also has the potential to transform virtual reality iGaming. A lot of the processing power of VR gaming will be able to live in the cloud, providing a VR iGaming experience as we have never seen before.

With that in mind, 2021 could be a strong year in terms of iGaming investment.

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