Taking the plunge and applying for an offshore gaming license is a big decision. The stakes are high and any wrong move can cost you a significant amount of time and money. There is no doubt that the online gaming industry is going from strength to strength, it’s one of the few industries that is successfully weathering the current pandemic.
But realistically, what are the short and long term prospects of the online gaming industry? What technologies are influencing its direction? And which markets should you be looking to target in the coming year? In this section, we draw on our hands-on industry experience and some reputable studies to bring you a comprehensive forecast of what’s to come.
Projections for the Gaming Industry
You might have the desire to set up an online gambling company but at the same time, you could be wondering if it’s a safe bet. Despite the rise and fall of various global industries, the Gaming Industry has remained strong and continued to grow at a steady rate. Forecasters believe that it will continue to evolve in the coming years, meaning that an investment in an online gambling platform is a shrewd move for business owners.
The global online gambling market size is expected to reach USD 127.3 billion by 2027, registering a CAGR of 11.5% from 2020 to 2027. The market is expected to gain traction over the forecast period. The growing popularity of betting across the globe and freemium model in online gambling are among the potential opportunities likely to unfold in the next few years.Business Wire article: Online Gambling Market Size, Share & Trends Analysis Report by Type (Sports Betting, Casinos, Poker, Bingo)
According to Statista, in 2020, over 3 billion people globally use or have access to a smartphone. It’s estimated that some 2.4 billion people use their smartphones for gaming– that equates to 30.7% of the total global population. While not all of these individuals are potential online gamblers, it does give you an indication of the size of the market and the importance of tailoring to mobile users. If you are not offering a mobile-friendly site and app, you are going to be missing out on a huge target demographic.
Google Trends has also reported a significant increase in the total searches conducted by users for online sports betting. This increase has been recorded as an impressive 2,850% when compared to 2019. When we break it down into areas, the highest number of searches concerning population was in Malta, followed by Ireland, Cyprus, Romania, and Sweden. On the flip side, those with little interest in sports betting were reported as Poland, Slovakia and Germany. These insights are invaluable for those considering expanding their online gambling services portfolio or incorporating a sports betting site.
More than anything, trends are showing us that people are happy to pay for games and spend while playing games either on their mobile or other connected devices. This means there is great potential for online gambling operators to tap into markets spanning different generations.
Best Payment Solutions for the Gaming Industry for 2021
When setting up an online gambling company, you need to carefully consider how your clients will make their deposits and withdrawals. As a standard, you should include Visa and MasterCard, but there are many other payment processors and payment solutions you should be evaluating for integration.
|Biometric Payment Providers|
|Similar to smart speaker payments, there is now a need for payments that can be facilitated via biometrics such as iris scan or fingerprint. With just a blink or a swipe, users will be able to deposit onto the gambling platform, as well as authorize withdrawals.|
|More people are opting to use eWallets to manage their online transactions. This electronic card allows them to enact payments via mobile or computer in a safe and fast way. There are now specialist eWallet gateways that can be linked to your platform to allow users to make their deposits in this way.|
|Smart Speaker Payments|
|Another emerging trend is the home assistant or virtual assistant facilitated payments. These allow users to give voice commands to make payments. Already, 35% of smart device users use it to make purchases and there is no reason why this cannot be the case for online gambling payments as well.|
|Gaming trends show us that mobile gaming is the way of the future with more and more people accessing online gambling from their devices. As such, operators need to ensure they offer a smooth, secure, and efficient mobile point of sale processors. By allowing the streamlined and flexible use of mobile PoS, you can remove cumbersome check out processes and lengthen the number of time that users have to enjoy games.|
|Some 2.1 billion people use mobile wallets, a number that is increasing constantly. Via this wallet, users can send and receive money, store money, and make a range of payments, including your online gambling platform.|
|Cryptocurrency is experiencing widespread adoption and more users are wishing to use it for the purpose of online gambling. Some sites already offer deposits and withdrawals in various cryptocurrencies and this is something that will continue into 2021. In fact, customers will want to deposit in a range of different virtual currencies, not just Bitcoin and Ether, and they may want the choice to switch to fiat as well. Incorporating crypto payments into your site is a must.|
Best Markets for the Gaming Industry in 2021
The online gambling market has seen considerable growth over the last few years with more and more businesses expanding their operations globally. In addition to this, more governments have started creating gaming-friendly legislation to open up their domestic markets and demographics to the industry. But what and where is hot for 2021? Fast Offshore has picked some of the most promising emerging markets for the year ahead.
The Indian iGaming market was worth $830 million by the end of 2019 and it should note an increase in 2020 as well. It’s expected to quadruple in value over the next decade, making it one of the biggest markets in the world. Nationwide, there is a great interest in eSports and sports betting, as well as conventional online casino games.
The iGaming sector in India is relatively new so there are little saturation and plenty of players ready to log on. It’s also worth noting that India is home to over 1.4 billion people and while not all of them are legally allowed to gamble, it indicates just how big the potential market is. You can use your Online Gambling License from countries like Curacao or Kahnawake and legally offer your services to citizens from India.
Latin America (Brazil & Colombia)
The whole Latin American area is home to over 600 million people but in terms of online gambling, the market is somewhat unpenetrated. This is set to change. The regions love for sports combined with increased internet access and changing laws on online gambling is creating a market with significant potential.
The most prominent jurisdictions for online gaming clients in Latin America are Colombia and Brazil. Colombia was the first Latin American country to regulate online gambling in 2016 and it remains the only fully regulated market in the area.
In Brazil, the previously underground online gambling market is now shifting into the regulated territory. In December 2018, a new bill was signed into law that would set out laws and licensing for online wagering. It’s worth noting that Brazil has the highest number of internet users in Latin America and the fourth highest in the world.
That’s a lot of potential clients that can use your platform with no restrictions!
The European Union
The European Union has always led the way with the online gambling industry with it generating EUR 22.2 billion in 2018. This is expected to grow to EUR 29.3 billion by 2022. This means that while the EU is an established market, it’s a hot one as it continues to grow and an impressive rate. Furthermore, Member States are taking steps to further regulate the industry and allow online gambling within their territory. Examples include Germany, who are in the process of regulating the online market. They will join states including France, Spain, Italy and Malta in the growth of the EU industry. With 446 million inhabitants in the bloc and 85% of them using mobile phones, the market is primed for mobile gambling.
Emerging Technologies and Trends of the Gaming Industry
Asides from the overall growth of the market and the increase in popularity of offshore jurisdictions, there are new and emerging technologies that are driving forward the popularity and profitability of online gambling.
New technologies such as artificial intelligence, machine learning, big data, and virtual reality are already making waves in the online gambling community. The integration of these technologies both in the front end and back end of platforms attracts new uses, retains existing customers, and drives forward the industry, preventing stagnation.
One of the most disruptive trends we have seen emerging over the last few months is the shift of eSports from the niche, to the mainstream. What was once something of an underground sector, has now found a place next to conventional sports betting and is bringing in a previously untapped audience.
As conventional sports took a hit in 2020, eSports picked up much of the slack. Now that sports are regaining some sense of normality, eSports is demonstrating that it is retaining much of its market volume. This is good news for sports betting operators who can then branch out and offer eSports as well.
Esports, or competitive video gaming, is on the rise, with people tuning in to everything from Counter-Strike to League of Legends. Viewership on Twitch, the go-to site for game streamers, is up 31% in March, by one estimate.Times.com article: Something Needs to Fill That Void.’ As Stadiums Go Quiet, Esports Are Having a Moment
The best thing about offering eSports betting is that if you have an existing license, the chances are you don’t need to apply for another, you just need to update your game portfolio with your licensing provider. If you don’t already have an online gambling license, the main jurisdictions will happily allow you to operate an eSports betting company from within their territory, subject to the satisfaction of licensing criteria.
There are however some cases where additional steps or processes need to be carried out. If you want to set up an eSports company on an existing license, it’s best to check with your corporate services provider before you go ahead.
Mobile phones are fast overtaking PCs when it comes to accessing all kinds of online services. Shopping, social media, news, education, and of course, online gambling are all increasingly being done via mobile.
As a result, online gambling companies need to be sure that they focus on mobile gaming offerings including apps and a mobile-friendly website.
Going forward into 2021, the mobile gambling market is set to be the most lucrative and expansive and has huge potential for profitability for entrepreneurs with their fingers on the pulse.
Existing online gaming sites and startups need to be aware that their target demographic has changed. Times and technology have also changed meaning that the demand for innovation, emerging technology, high-tech, and exciting new features is higher than ever.
You cannot just offer a standard online casino with slots and table games in 2021- you need to be striving to serve your clients who are exposed elsewhere to many other forms of technology. At the very least, you should be considering artificial intelligence, virtual reality, and cryptocurrency and virtual payments.
Contact Fast Offshore
Acquiring an online gaming license is a shrewd business decision that will open you up to new opportunities and a revenue stream that will continue to grow. Fast Offshore is poised to help our clients ensure they make the best of the current market situation and we can guide you in the best direction. From emerging technologies and the hottest markets, we can provide you with sound business advice and guidance to make sure you incorporate your online betting company in the right place at the right time.
To find out how to expand your current business, or to launch a new one, contact us today to take the first step!
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