The Rise of Online Gambling: A Growing Industry and Its Impact

By Ooh Zi Xuan

a person who is online gambling (by Ooh Zi Xuan)

From a niche activity to a multi-billion-dollar industry, online gambling has been driven to date by technological advances, legal changes, and changing consumer attitudes. First appearing in the mid-1990s with the growth of the internet, online gambling really took off with the rise of broadband and smartphones, which made it possible for players around the world to access games. By the early 2000s, online poker and sports betting became mainstream.

Indeed, increased legalization and regulation have hastened the growth of this industry. For instance, some states in the U.S., like New Jersey and Pennsylvania, have legalized online casinos and sports betting, reaping billions in tax revenue while providing consumers with protection. As social perceptions regarding gambling have changed, gambling today is seen as a legitimate form of entertainment, serving a wide array of customers. Such diversification of products-from classic casino games to bets on eSports-has broadened the industry's scope.

Economically, online gambling has turned into a huge source of revenue. Billions are brought in as a tax in regulated markets and are reinvested into public services. For example, in New Jersey, the total revenue derived from online gambling reached over $1 billion in 2023. It has also created jobs within the industry in software development, marketing, and customer service, and there is further revenue generated by sports organizations from sponsorship deals with gambling companies.

a person who addictive in online gambling (by Ooh Zi Xuan)

However, online gambling has its risks, especially addiction. The 24/7 availability and anonymity of the online platform make it even more addictive compared to casinos. Many operators have now introduced responsible gambling measures, including self-exclusion tools, but these features are not that effective in all cases. Security is another issue, with fraudulent operators using deceptive practices. Players must ensure they use licensed and regulated sites to avoid these risks.

The industry is further fragmented by the regulatory environment across countries. Different regions have different laws, which create confusion for operators and players alike. Greater international collaboration is required to create uniform regulatory standards.

Going forward, new technologies such as AI and VR will change online gambling. AI can personalize experiences and also help identify problem behaviors, while VR might create new immersive ways to gamble that could rival physical casinos. Greater use of cryptocurrencies and blockchain technology also means faster and more secure transactions.

Online gambling has grown into a more-than-ever global phenomenon that comes with enormous economic benefits, increased addiction problems, serious security challenges, and regulatory hurdles. Still, the industry is likely to continue growing as innovations are ongoing and regulation gets better.