Should You Be Investing in Gaming in 2018?
December 20, 2017 (Investorideas.com Newswire) Investing is a great way to get some extra income. However, as any great investor will tell you - you need to know exactly what you're investing in, because certain markets can be unpredictable and may change fast.
So if you're looking for an industry that's shown plenty of strength and growth over the last few years, and looks set to enjoy an impressive amount of growth over the next few years, look no further.
It's time to invest in the gaming industry.
The Growth of the Gaming Industry
Thanks to technology, the gaming industry has gone from strength to strength and is a far cry from the arcade machines that were placed in pubs, bars and restaurants over thirty years ago.
In 2012, statistics indicated that the entire gaming industry was worth a staggering $417 billion. And one of the reasons why gaming is such as thriving industry is because there's so many different elements to it.
For example, in 2015, the global video game industry was worth $71.3 billion, but PricewaterhouseCoopers (PwC) forecasts a 3.6 per cent growth, which will take the industry's overall worth to a whopping $90.1 billion, by 2020. PwC also predicts that video gaming will grow by 6.3 per cent every year through to 2020.
But there's another aspect of gaming that you'll want to watch out for - online gaming.
Of the $417 billion the gaming industry was worth in 2012, 8 per cent of that came from online channels, the equivalent of $33.8 billion. However, experts suggest that this online figure could almost double to $59.79 billion by the turn of the next decade, providing an even bigger growth than video games.
An Insight into Online Gaming
Compared to the gaming and gambling industry, online casinos are still quite new as they've only been established for around twenty years. And even then, the format was incredibly basic and wasn't widely used.
However, over the years, the industry has advanced at a rapid rate across the globe. Last year, the online gaming industry exceeded £4 billion in the U.K. alone. This means the remote casino, bingo and betting sector boasts a 34 per cent market share of the overall gambling industry in the U.K.
Equally, as of 2015 Australia is enjoying a 43 per cent rise in the online gambling industry, and Malta relies heavily on this industry to boost its economy, with it being worth a massive €1.2 billion - 12 per cent of its GDP (gross domestic product).
This demonstrates how much money there is to be made when the opportunities are there.
An example of a company which has enjoyed ongoing success from the online gambling industry is Wink Bingo. Going from strength to strength, this platform attracts an increasingly young audience. And, thanks to the innovative ideas the company continues to introduce, Wink Bingo looks set to have a strong and successful 2018.
Should You Invest in Online Gaming?
In many ways, we've already determined that investing in online gaming (and online gambling in particular) is a good investment. However, due to this industry being quite a secretive one, there are perhaps a few unknowns that need addressing before you make the decision to invest.
Firstly there's the issue of regulations, which, in a lot of countries (including the U.S. which is a major market) can be quite a bind when you're trying to operate an online casino. However, for U.K. operators these regulations are often a welcome relief as they provide greater clarity on taxation and other key factors such as what obligations a company has towards security and technology, the scale required for various elements of customer service and what's required for advertising.
Gambling has struggled to gain investors in the past due to the various misconceptions about red tape and a lack of transparency. Even though it's often associated with great wealth, there isn't a large amount of money going into the sector from a diverse range of investors like in other industries. This created a bottleneck, one that casinos are only just starting to be get past.
All of this has left some people suggesting that the online gaming industry now offers plenty of unique opportunities. It's a relatively new thing, and it's quite evidently buoyant, which leaves investors with plenty of areas to make their mark.
For example, lotteries are constantly growing, especially as brands like Lottoland look to expand into international lotteries. This will allow players to bet on the outcome of foreign lotteries before having their payout matched.
Digital fantasy sports (DFS) is another huge and growing area of online gaming, particularly in the U.S. These types of gaming experiences that create daily fantasy sports could be worth over $5 billion by 2020. And, despite most of these sports being associated with the U.S., there are links to the U.K., with the offices of one of the sectors leading providers being located in Glasgow and Edinburgh.
Furthermore, in-play betting is becoming even more predominant in the world of online gambling, with many bookmakers being happy to take bets on a whole host of things, from how long someone's going to spend in the sin-bin in rugby to how many corners there will be in a football match.
All in all, these figures and trends make for good reading if you're considering investing in the gaming industry. With digital fantasy sports, online gambling and video games predicted to grow at a rate that's far greater than most other industries, now could be the right time to place a bet on the gaming industry.