The online gambling sector has proven to be one of the most resilient and dynamic in the world. This is despite the past few years’ complex economic, health, and geopolitical dynamics. But is it worth investing in? With such a booming market, some have questioned whether there is still room for new operators. This article will look at the online gambling sector, the current situation, the future, and particular areas of interest.
Deregulation of gambling markets
While the US can be tempting, many other locations worldwide have better prospects for starting an online gambling company. Many EU and Latin American countries have been tweaking their legislation to open up markets to operators from abroad. For instance, in France and Germany, you can get a license or offer games as a foreign operator. Established jurisdictions such as Malta have also played with their laws to make it more efficient for those applying for gambling licenses. Italy has also followed suit by loosening legislation to make it more appealing to the online sector.
There is also development in Asia, where online gambling is illegal in many countries but where there are millions and millions of players. These countries offer a huge chunk of revenue to offshore gambling operators, and the market is still untapped, particularly in sports betting, fantasy sports, eSports, and cryptocurrency betting.
Entrance of land-based casinos
As the online sector continues to boom, many land-based casino brands have been looking to start up online as well. Companies such as MGM, Vegas Sands, Rank, and Harrah’s are looking to capitalise on online gambling, using their established names. They hope to mop up players that may be hesitant about online gambling and those not able or willing to visit land-based casinos. Their entrance into the market will significantly boost the sector and bring in new revenue streams.
As the market grows and big players become more wealthy and influential, we will also see the consolidation of brands and diversification. Companies involved in game development, casino platforms, software, hosting, marketing, and more will not only snap up each other but will also look to diversify into other niches. We can confidently predict an increase in mergers and acquisitions over the next few years, both among gambling companies and virtual leaders, as they seek to grow bigger and stronger.
Bingo for bingo!
Over the last two years, interest in bingo has increased steadily along with other social games. Online social networks such as Facebook have helped cultivate this interest, promoting gambling, gaming, and socialising. This is expected to grow with more game types being brought under the social gaming umbrella, although bingo will lead the way for the future across all age groups. In the UK, for example, bingo is the fastest growing sector of the online gambling sphere and offers significant potential for the future. Other markets worth keeping an eye on include Asia, India, Eastern Europe and Latin America.
Mobile gambling is here to stay, and it is soon set to take over entirely from desktop gambling. As smartphones are more accessible, quicker, and more high-tech than ever, the prevalence of online gambling via these devices increases. Particular areas of interest for the mobile market include real-time sports and fantasy sports betting and live dealer games utilising the camera facility on most smartphone devices. The continued rollout of 5G globally, combined with free WiFi almost everywhere, will significantly boost this market.
What are the risks?
As with everything, starting an online gambling company comes with risks. In 2022, the main risk is that of legislation. While many countries are focussing on legalising and facilitating legal online gambling, some are tightening the rules. In conjunction with this, stricter AML/CTF laws mean an increased regulatory burden on operators and costs. A combination of these two factors may stunt growth in some regions and jurisdictions and hamper already established ones.
Crackdowns on the payment sector are also a concern. Credit card companies worldwide have placed limits on gambling using their products. Visa and Mastercard have both limited using their cards for gambling, while the UK has banned it altogether.
Trust will also remain a constant challenge for operators. Customers are still wary of paying online, gambling online and inputting personal data into a website. This, combined with rising fraud incidences, creates something of a perfect storm. It is therefore up to providers to instil trust in players. This can be done by being transparent, compliant, and keeping communication open. Offering crypto payments is another solution designed to help players feel better about transacting online. Operators must also be cautious to remain fair to players. If the odds are consistently stacked against them, they will soon go elsewhere for a better gambling experience.
To get your online gambling business started, you need to talk to Fast Offshore. For over 25 years, we have offered custom and turnkey packages to entrepreneurs in the sector. These include incorporation in various jurisdictions, licensing, payments, compliance and all ongoing maintenance. For transparency, professionalism, and the best value for money, contact Fast Offshore today!