Investors are an important source of capital for organizations, and the recipients of the investment do their best to reward their investors’ faith in them. Part of this entails looking for opportunities to generate revenue and make the organization profitable. It may partner with another organization or business or look for opportunities in new sectors or new markets.
One sector investors are taking an interest in is igaming. Since the first eagle-eyed entrepreneurs spotted the opportunities the internet offered to make casino gaming more accessible, igaming has taken off. Competition is vast, as other operators have entered the market and tried to help themselves to a slice of the revenue online slots sites and other casino gaming sites can generate for them.
But why would organizations or wealthy investors put money into igaming? This post looks at the benefits of doing so, with special consideration to the Canadian igaming market and what’s going on in it.
The Benefits Of Investing In iGaming
Investing in the igaming sector is a juicy prospect for any individual or organization that has the cash to do so. Igaming offers a wealth of benefits that make investment worthwhile.
Potential For High Returns
Igaming is growing increasingly popular around the world, and, thanks to advances in technology, igaming services are more accessible than ever. The ongoing engagement of players and the introduction of new games allow it to generate high levels of revenue consistently.
Potential for Growth
An igaming business can operate in one market, but it doesn’t have to stay confined to that market. Operators can extend their services beyond the borders and enter new markets. Some regions are still relatively untapped, creating a tempting opportunity for operators.
Scalability and Flexibility
The nature of igaming businesses makes them flexible and adaptable to new markets. They move with trends and respond quickly to consumer demand. In a fast-moving industry, they remain competitive and can maximise their returns.
The Future of the Canadian iGaming Sector
The Canadian igaming sector shows much promise and could prove very attractive to investors. The country is developing regulated markets in some provinces, mobile gaming and other technological innovations are driving growth of the sector and, inspired by changes in regulation, consumer interest is growing.
More Regulated Markets
All that is happening now means the sector could look very different in 10 years’ time. The success of Ontario’s regulated igaming market has got some other provinces thinking about whether they could make a regulated market work for them as well.
Alberta is one province considering regulation. Ten years down the line, many more provinces, perhaps even all of them, may have their own regulated markets.
A Focus on Player Safety
Undeniably, provinces will reap economic benefits from regulated markets, but one of the main reasons for regulation has been to protect players. Operators take players’ safety seriously and have been stepping up cybersecurity measures to make gaming safe for them. Secure payment processing, two-factor authentication and encryption are all measures operators are taking. The Canadian igaming sector will focus even harder on protecting players as the years go by.
Trends and Consumer Demand in the Industry
The Canadian igaming industry is booming and has proven itself capable of generating billions in revenue in a single year. Figures are expected to have increased by the end of 2025.
Besides the development of provincial regulated markets, mobile technology has had a big impact on the Canadian industry. Today, most operators in Canada have a website designed to render well on mobile devices. Some also have apps to make playing easier and more convenient for players when on the go.
Is Investment Flowing into Canadian iGaming?
At present, some provinces only allow igaming on the sites the provincial government operates. The opening of provincial markets up to private operators, however, is creating vast opportunities for overseas operators and rewarding with investment provinces willing to welcome private operators.
Best of all for Canada, the igaming sector is not just attracting investment from igaming operators but also related industries. Fintech operators are seeking ways to work with igaming ones because online casinos want to provide safe, convenient ways for customers to credit their accounts.
Canada also has a blossoming esports scene that is also driving investment in the sector. Esports events have become popular with sports betting fans and are catching the attention of investors, who are looking to support events and esports teams, and to work with igaming operators.
Canada’s igaming scene is thriving, but regulated igaming markets have only been the norm for a few years, so there are still many opportunities for investors to capitalize on. It’s only in the 2020s that the country has truly embraced igaming, and there’s still work to be done. Investors must keep an eye and be ready to put their money into the sector when the opportunity arrives. It looks like a move they won’t regret.
