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How Best to Invest in the iGaming Boom

By Keld Knudsen, TerraMedia CEO

The iGaming industry continues to experience strong growth, with the online gambling market worldwide projected to reach €99.6bn ($107bn) in revenue by 2024.

This upward climb is being driven by the industry’s ongoing advancements in tech, changing consumer preferences, and the global shift towards online entertainment. 

All this accelerated rate of growth is expected to result in a market volume of €128.5bn ($138bn) by 2028, along with an annual growth rate (CAGR 2024-2028) of 6.51%

The number of players using online gambling services is expected to reach 243.2m by 2028. 

What’s more, user penetration, which measures the percentage of the population who are engaging with online gambling, is projected to be 2.5% in 2024 – and that figure is expected to increase to 3.0% by 2028.

For investors, this surge in user numbers and market growth presents a wealth of opportunities that can seem exciting, with benefits just waiting to be reaped. But the iGaming landscape is complex, so you need effective strategies to navigate the market and maximise your profits.

Let’s take a look at the current trends and growth opportunities within iGaming.  

Technological advancements, including virtual reality (VR) and augmented reality (AR), are reshaping the iGaming experience and making software providers and casinos alike rethink how and what they offer to players. 

Investors should keep an eye on companies developing these technologies because the enhanced user engagement they offer will help platforms and verticals that embrace this cutting-edge tech to stay ahead of the competition.

As part of that, Artificial Intelligence is a brave new world that is opening up new horizons for everyone, not just the iGaming industry. We’re only just beginning to understand what AI can do. 

AI’s potential might initially seem like it can be great for effectively handling customer service, streamlining efficiency and cutting costs – but it can do so much more than that. AI will reshape and redefine what we can do with iGaming and it may eventually revolutionise the gaming experience for players everywhere. 

When it comes to tech, we have to consider the ubiquitous use of smartphones in all our lives, which in turn has fuelled the dominance of mobile gaming. Investing in companies that prioritize mobile-friendly platforms and capitalize on the growing mobile gaming market can be a smart move, because mobile platforms are where the players will be – so allocate your resources wisely and meet them there.

eSports has now established itself as a major driving force within iGaming, and it’s very much worth considering as an area to invest in. Integrating these into traditional betting platforms presents lucrative opportunities for investors, as does the rise of dedicated eSports betting sites. 

This might not be an area you’ve considered becoming involved with before, but eSports is here to stay and has huge potential, so look for the opportunities it presents. 

Once you’ve identified your area of interest, it’s time to get busy and work out how best to invest.  Now, there’s an endless amount of investment strategies you can embrace, but the following are some of the most effective.

Diversifying your investment portfolio is crucial in mitigating the risks that come with the whims and storms found in the market. 

So instead of focusing on a single segment of iGaming, consider spreading investments across various sectors. While you may be drawn to online casinos and sports betting, consider funding eSports ventures along with different kinds of emerging technologies as well.

Some will hit, others miss, but if you’ve spread your portfolio around then you’re protecting yourself. 

This next point might sound basic but it needs to be said. Before committing any amount of capital, conduct a thorough due diligence process on your potential investments. 

Assess the financial health, regulatory compliance, and growth prospects of iGaming companies. Stay informed about licensing agreements, partnerships, and market reputation. 

Ask questions about all these areas, and seek advice from experts you trust – lawyers and accountants you’ve worked with before – before parting with your funds. 

More than ever before, the iGaming industry is under scrutiny and subject to compliance regulations that evolve and differ in locations around the world. 

That’s why staying up to date with regulatory changes in key markets is crucial so that you can adapt your investment strategy accordingly. You don’t want to invest in a company that is going to be hit hard by a new regulation in its geo, for example. 

Always remember that companies with a proactive approach to compliance are better positioned for long-term success.

Finally, iGaming platforms that prioritize having an engaging user experience are much more likely to attract and retain customers. 

That’s why platforms which consistently enhance their user interface, introduce innovative features and prioritize customer satisfaction are the ones most likely to achieve sustainable growth – and those are the ones you should be investing in.

The iGaming boom presents a wealth of opportunities for investors, but they need to have a plan and a thought-out investment strategy to make the best of the industry’s rising popularity. 

Embracing a forward-thinking approach and adapting to market dynamics will be crucial for those investing in iGaming’s future – so pick your strategy wisely, and it won’t be a gamble. 


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