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The Growth of Online Poker

by on April 22, 2020
 

Although it seems like it’s been a part of our lives for a long time, the internet only really became mainstream in the mid to late 1990s. It very rapidly took hold, as personal computers began landing on our work desks and in our homes.

By 2007, 5.1% of all retail sales took place online. It has since increased by a considerable margin, accounted for 16% of all retail spending in 2019. Even during the great recession of 2008-09, online retail sales grew, while traditional brick and mortar stores saw a decline of 3.3% in the US. 

Around this same time, online poker was enjoying gradual, but significant growth. The 1994 passing of the Free Trade and Processing Act in Antigua and Barbuda provided the legal framework for online casinos and poker sites to begin operating, and within one year, more than 200 sites were running around the world.

The Poker Boom

This gradual growth turned exponential during the poker boom. This was the period between 2003 and 2006 and was brought on by several factors. 

In addition to the increased availability of online poker, the 1998 film, Rounders, and the more frequent broadcasts of large poker tournaments on TV increased the interest in the sport. 

Events like the World Series of Poker, one of the leading international poker competitions, enjoyed increased coverage on sports channels in the US and Canada during the 2004-05 NHL lockout, providing a new audience to find interest in poker.

Evidence of how quickly the mind sport grew can be seen in the number of entrants to the World Series of Poker. In 2003, 839 people entered the main event. By 2006, this figure had increased to 8773. 

The number of total entrants also increased from around 10,000 in 2003 to approximately 50,000 in 2006. These numbers have continued to grow ever since, with more than 120,000 people entering in 2017.

Strong Competition

From its humble roots in the mid-1990s, online gaming is now big business with several publicly traded companies currently dominating the market. These companies typically offer a broad range of products in addition to poker, including sports betting, online casinos, and bingo. 

However, poker is often a product that they use to drive interest to their other platforms. As you can imagine, with such high levels of competition, these operators need to find ways to stand out from the crowd.

In an attempt to do this, online poker sites have begun to design innovative versions of the game to provide something new and exciting for customers. For example, in addition to the traditional poker games like Texas Hold’em and Omaha Hi/Lo, poker fans can now take part in knockout poker tournaments where there is a bounty on the head of every player.

Other innovations include virtual reality poker and a push for live casinos that offer Caribbean Stud Poker, which is played against the dealer like blackjack, rather than other players. 

Pop Culture Influence

Pop culture also plays a significant role in driving interest in poker. Just like the Rounders was a catalyst for the poker boom, other popular films have featured leading characters that play the game.

For example, in the 2006 release of Casino Royale, James Bond plays a high stakes game of poker while trying to track down an international criminal. Other popular films that have featured poker scenes include Maverick, The Cincinnati Kid, Shade, and Deal. 

There are also long lists of celebrities that enjoy playing poker. For example, actors Ben Affleck, Tobey Maguire, and Jennifer Tilly. 

Smartphones have made it possible to play poker anywhere

The Mobile Boom

Shortly after the poker boom began to slow down, Apple launched its first iPhone. This created a whole new market for smartphones, with Apple and Google taking on existing manufacturers like Nokia and Sony. 

This meant that the vast majority of consumers were now carrying pocket-sized devices that had a similar amount of processing capabilities as personal computers. Mobile gaming became a big trend, particularly with popular options for the time like Angry Birds and Flappy Bird. 

Online poker brands followed suit, launching their mobile poker apps. This allowed people to play games on the go, whether they wanted to play for free, in real money games, or enter online tournaments. 

It also meant that people could play at home without the need for a computer. Therefore, playing while relaxing on the sofa or in bed also became a lot easier since it was only necessary to carry a lightweight mobile phone. 

Billion Dollar Industry

Online poker has become a billion-dollar industry in its own right, with just the top few publicly traded companies generating more than $1 billion of revenue from poker alone each year. 

This can be seen by the large pots of prize money awarded at competitions like the World Series of Poker and the European Poker Tour, much of which comes from sponsorship deals signed with the leading poker brands. 

In just a few decades, online poker has gone from nothing to a massive industry with a loyal following. It owes this spectacular growth to a range of factors, in particular, the widespread access to the internet through personal computers and smartphones, as well as the surge in interest generated by the poker boom. 

Despite enjoying 25 years of growth, online poker, and iGaming, in general, it does not look like it will be slowing down any time soon.