The gaming industry changes very quickly. It’s a dynamic, fast-paced, and sometimes chaotic environment. The stratospheric growth the market has seen in the last decade or so has turned gaming into a political discussion, a significant economic force, and a moral debate. 

The rest of 2020 and going into the next year will see an ever-changing landscape. These are some of the changes and information you should be taking into account in the next few years.

Growth of Online Casinos 

Online casinos have been on an upward trend for a number of years. The introduction of fast speed internet, improvements in 4G technology, and an increasing number of high-quality gaming options have led to online gaming becoming a serious threat to land-based casinos. 

Covid-19 has served to propel this growth into hyperspeed. With gamblers either stuck at home or worried about coronavirus transmission rates, most have turned to an online alternative. The numbers are pointing to record growth rates, with the UK gambling commission seeing a 25% increase in spending on slots, a 38% increase in poker, and a 40% overall increase in virtual bets. 

In the United States, we expect to see the results of the Supreme Court ruling coming in a lot faster than anticipated. The 2018 decision effectively struck down a ban on sports gambling, with the result being a movement on state-level regulations on sports betting. 

With individual states scrambling to up their tax revenues in an uncertain economy, we expect to see a relaxation or reworking of existing regulation. Online gambling, sports betting, and other such activities will likely be given the green light on a wider scale. 

Regulation of eSports 

eSports has quietly grown to become a true juggernaut in the gaming industry. And with growth come the big businesses and government regulators. While eSports certainly has the big-budget entertainment events that have the stamp of approval from companies, most events are relatively small and local. 

However, even ‘smaller’ events have become significant economic enterprises. Often these are run using licensed material from video game creators, without seeking or having the developer’s approval. 

The legal aspect is a little tricky to manage. Who owns the rights to the video game in an eSports setting? Should video game developers have a legal right to some of the profits? What about the rights to broadcast events? Considering experts believe the fanbase is going to increase to half a billion viewers by 2021, these are becoming important questions. 

We foresee lawmakers working with big businesses to come up with a roadmap to manage and control the way eSports events are run, how profits are distributed, and who owns the rights to the material. 

Crackdown on Loot Boxes 

After public outcry and deep scrutiny from experts, governments and big tech firms have begun cracking down on loot boxes. They’re already banned in Belgium, and we expect others to follow suit. 

Critics argue that they create an unfair ‘pay to play’ model. They also lead to problem spending, with kids often unaware that they’re using real money to buy them. Claire Murdoch,  the mental health director for the NHS, argues that they provide an ‘under the radar’ pathway to gambling addiction. 

Overwatch was the first iteration of the new wave of loot boxes. Blizzard released the game in 2016 to both critical and public acclaim and has consistently ranked as a fan favorite. Its loot boxes were incredibly popular, leading the company to rake in an additional $1 billion in revenue. 

While there was some blowback against having to pay more money to access the bonus loot boxes, the controversy didn’t reach fever pitch. And that’s because the loot boxes didn’t affect gameplay; if you didn’t have the money to buy them, you still got the complete Overwatch experience. 

That’s changed in recent years, with companies trying to aggressively tap into the microtransaction market. Gamers now view loot boxes as an unfair ‘pay to play’ system, not a bonus, but a necessity in order to enjoy the virtual action. 

Growing Concerns About Privacy 

When we sign up for a new online service, most of us are very aware of the importance of keeping our data secure. However, when it comes to gaming online, the majority do not give it a second thought. 

With the growth of biometrics, location-based games, and augmented reality, amongst other new ways to play, privacy is going to become a growing concern for players and regulators alike. 

This concern is tied to the aforementioned controversy surrounding loot boxes. Hacking a gamer’s account, for example, has become far more profitable. Some can be worth thousands of dollars, packed with an individual’s collection of game items, characters, and other in-game purchases. These can be sold on an increasingly thriving black market. 

In addition, many accounts hold a lot of personal data. It is not uncommon for details to include date of birth, addresses, cell phone numbers, as well as social media credentials. There is a wealth of information hackers relish. 

Expect More Changes as the Industry Grows 

Gaming has become well and truly mainstream. It’s not an arena that is limited to the stereotypical high school boy, with everyone now enjoying gaming in various forms. This growth has catapulted gaming to a large scale economic affair, and growth causes change. 

Expect to see the landscape shifting in unexpected ways in the coming years. With Covid-19 turning more and more people to online entertainment options, it is inevitable that the picture will look very different in the future.