iGaming involves the placing of a bet on the outcome of a sports event, video game, or casino game.
This covers most online betting and iGaming is big business throughout the world. You only must look at the choice of online sportsbooks and casinos, such as Dunder online casino, to understand just how big the industry has become. However, 2020 was a testing time for everyone but that did not deter the market, which was worth $64.13 billion in 2020. The question is, how did the iGaming market fare in the following year?
Figures suggest the iGaming market continued to grow in 2021 and was worth $72.02 billion, at a compound annual growth rate of 12.3%. Forecasters believe this is going to grow even further in the next few years, with some projections suggesting we could see the iGaming market value rise to $112.09 billion by 2025.
Back to 2021 and if we look at the United States as an example, the first quarter of 2021 alone saw a record revenue of $901 million in the iGaming market. Looking at the figures for the whole of 2020 and the iGaming revenue in the US for the entire year was $1.55 billion but in the first half of 2021, the total iGaming revenue hit $1.66 billion. This is an incredible increase in revenue for the iGaming market in the United States and shows the iGaming industry fared remarkably well in the US.
There are things to consider when looking at the figures coming out of the US, including the fact more states have been legalizing online gambling. Online casinos and sportsbooks are becoming legal in new states every year and that is only going to lead to more people getting involved in iGaming. Therefore, we expect to see the figures going up in the US and once the final iGaming revenue figures for 2021 are released, we expect to see a substantial number. There is no doubt the continued legalization of iGaming across the US played a significant role in the revenue increases in the first half of 2021.
However, we cannot forget the continued improvement in online casino games and sportsbooks. We have access to thousands of tremendous games, including live casino games and eSports betting. During the pandemic, people were forced to stay at home and those who missed attending a land-based casino, had the option of playing a live casino game. Such is the quality of live casino gaming today, many of those who played live casino games for the first time in 2020, continued to play in 2021. Without the continued introduction of new games and innovative ways to gamble, it would be difficult to attract new players.
If we move to the United Kingdom, the figures also show a positive beginning to 2021 for the iGaming sector. Between the months of April 2020 and March 2021, the online Gross Gaming Yield in the UK rose to £6.85 billion before a slight decrease at the end of 2021. This was over 18% more than the previous period and although the statistics only account for the first three months of 2021, it is a clear sign the iGaming industry enjoyed great success. The figures look promising throughout much of Europe for 2021, especially as some countries begin to legalize online gambling for the first time.
Looking at some of the tech companies behind the iGaming sector, such as EveryMatrix, the reports for 2021 are strong. In the final quarter of 2021, EveryMatrix reported gross revenue of €13.9 million. This is an increase of 26% compared to the same period in 2020 and shows iGaming continued to fare well in 2021.