How Online Casinos Superseded Brick-and-Mortar Alternatives

Posted by Harry Kane on Friday, April 1, 2022

For hundreds and even thousands of years, people have bartered or gambled in one form or another. From betting on horses classic European table games like roulette to card games, gambling remains one of the world’s most popular and beloved pastimes. Of course, such endeavours were once exclusively physical and land-based in nature, but this is no longer the case in an age where society is increasingly active online and reliant of the digital economy.

Make no mistake; online sportsbooks and casinos have emerged as highly preferable when compared to brick-and-mortar alternatives, particularly from the perspective of accessibility, payment options and withdrawals. But what do the numbers tell us, and how have online entities superseded their land-based counterparts?

How Have Online Casinos Have Closed the Gap on Their Land-Based Rivals

As the US market has begun to bloom of late (particularly from the perspective of sports betting), global iGaming has experienced exponential growth. To this end, the segment is forecast to peak at a value of $153.6 billion by 2030, while further growth is likely to follow over time.

This means that over the course of the next eight years, the world’s iGaming market will grow at a Compound Annual Growth Rate (CAGR) of 11.7%, replicating a trend for double-digit growth that has persisted for years now. But what’s behind this trend? Well, one of the main factors is the high levels of engagement with dedicated mobile betting apps, with more than 50% of UK gamblers now wagering frequently through their smartphone or handheld tablet device.

Of course, we should note that iGaming is largely founded upon a freemium operational method, and one that actively incentivises players and affords them flexibility of how they spend their hard-earned bankroll. No single individual marketplace reflects such trends better than the UK. Arguably the single most mature and highest growth market of its type in the world, the UK also continues to record healthy double-digit growth every year (spare the odd, notable exception).

In September 2021, for example, iGaming participation rates in Britain peaked at some 32.8% of the total population, with this being driven by young adults and the 45-54 age demographic that has started to transition from land-based casinos to online alternatives.

We’ve also seen online gambling become an increasingly influential driver of growth within the industry as a whole. More specifically, online casino and sportsbook channels now account for 38.8% of the total gambling yield in the UK, and it’s widely anticipated that this figure will reach 50% by 2030.

While many will argue that this is at least partially due to the relative decline of corporeal and high street betting in the UK, this alone simply isn’t enough to explain the exponential growth of iGaming on these shores.

But Why Are Online Casinos Overtaking Land-Based Alternatives?

These figures are compelling, and perfectly illustrate how online casinos are evolving to dominate the wider gambling market in the UK and throughout the developed world. However, the question that remains is how have online casinos overtook their brick-and-mortar rivals in such a short period of time? We’ll explore this below, with the majority of factors inextricably linked to the unique benefits offered by online casinos and remote sportsbooks.

#1. Online Casinos Are More Convenient

Historically, gamblers would have to leave the comfort of their own home to place their wagers, whether they visited their local casinos or visited the bookmaker on the high street or in the town centre. While this introduced some benefits in the form of socialisation, it’s not particularly convenient and created additional expenses such as taxis, alcohol purchases and (indirectly) clothing.

No such costs are associated with online gambling, which is far more convenient and can be accessed seamlessly through your PC, laptop, tablet or mobile device. Interestingly, more than 50% of UK gamblers now wager regularly through their smartphone or tablet, highlighting just how easy it is to place bets remotely and in real-time.

Of course, convenience is central to the rise of almost all online innovations and ecommerce markets, so it should come as no surprise that it also applies to the world of iGaming. This rule even applies to payments and withdrawals, which can be issued instantly across a wide selection of payment methods at online casinos.

#2. Online Casinos Connect You to a Much Wider Range of Games

When you visit a brick-and-mortar casino establishment, you’re restricted to whatever physical games or verticals are represented on site. This means that while most will feature a select number of physical slot machines, they may not provide extensive coverage of table games, poker or similarly niche pastimes.

Although online casinos are similarly dominated by virtual slots (which account for nearly 70% of the total iGaming yield in the UK), such entities usually offer a much broader games’ library. In fact, many boasts more than 1,000 games across a diverse selection of verticals, (some feature up to 3,000 titles) each of which can be accessed seamlessly through desktop and mobile devices.

#3. Online Casinos Provide Generous Welcome Bonuses

Last, but certainly not least, it’s important to note that online casinos often look to incentivise players through the provision of generous welcome offers. These can take multiple forms too, from classic deposit matches up to a specific value to free bets (in the case of remote sportsbooks) and free spin offers.

While each offer will come with predetermined buy-in thresholds and wagering requirements, they also boost your bonus balance and effectively create free cash with which to wager over time. No such incentives exist at brick-and-mortar or land-based casinos, meaning that you can leverage online establishments to cash in and make the most of your bankroll.