In 2023, the gambling industry had to deal with strict legal limitations. Not only were gambling activities closely examined by the law, but iGaming resources also had to fend off cyber attacks. Surprisingly, despite these challenges, the industry not only grew but also underwent significant changes. The proof of this can be found in a year-end report outlining the outlook for 2024. Partnerkin's editorial team utilized information from this report and we are ready to present you everything in this article.
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General iGaming Trends
The first thing to note is the trends of 2023 that will only strengthen in 2024. The table below outlines promising directions for iGaming investments:
- Data-driven decision-making: Thanks to technology, the ability to process large volumes of data has emerged.
- Mobile games dominate over offline casinos: From January to October 2023, 70% of all gaming sessions were conducted via users' mobile phones.
- Various payment methods: According to Optimove, 58% prefer reliable payment methods to enhance loyalty.
- Trend towards niche legalization: New legislative acts regulating the iGaming market have emerged. 95% of bets are placed on legal sites.
- Responsible approach to gambling: Malta's laws now require gambling companies to track signs of gambling addiction and promote "safe gaming," meaning playing in moderation.
- Strengthening data protection: Gartner predicts that by 2024, 75% of the global population will adhere to privacy rules, and the industry is moving towards a future without using cookies to enhance data security.
- Combating fraud through anti-fraud technology and the implementation of artificial intelligence.
The gaming industry's reach and impact have grown, reaching a broader audience. Not everyone can afford to go to physical casinos or make bets at bookmakers. However, mobile gambling has become a tempting option for gaming enthusiasts, with 70% of gaming sessions now happening on mobile phones.
Here are the trends set by 2023:
- Brazil established laws to regulate sports betting and online casinos;
- The Curacao Gaming Control Board tightened supervision rules for the iGaming industry, prioritizing transparent conditions and user safety and data security;
- The UAE also debuted in the gambling business, establishing the General Control for Commercial Gambling Regulation. Thus, like Brazil, the Emirates will develop the market towards the legalization of casinos and bets.
Now let's delve into the directions of development in more detail.
Legalization and Transition from Global to Private
There are three laws regulating the casino and betting industry:
- Maltese laws;
- Draft law No. 55, empowering Maltese courts to create a protective legal environment for the gambling industry;
- Curacao reforms — simplifying the legalization of the iGaming vertical and establishing common standards.
There are two more trends — a focus on anti-money laundering (AML) protocols to maintain fairness and prevent financial crimes. And the International Gambling Law (LOOK) resolution to create a safe gaming environment.
Several countries, including Germany, Sweden, and the Netherlands, advocate for the right to independent legal regulation.
Advantage: Monopolization will diminish. In free market conditions, countries will begin to compete to offer more favorable conditions to gambling business investors.
Disadvantage: Not everyone is willing to endorse the gambling industry. Societies that hold conservative views on life and sin, particularly religious communities, are inclined to either deem casinos illegal or impose stricter regulations within their areas.
The trend towards localization will also affect the geo-targeting setup: geo-dependent advertising must comply with local laws. Such changes have not gone unnoticed; major gaming companies, such as Entain, are reevaluating their strategies to comply with national certifications.
Promising Regions for the Gaming Industry
Brazil and Peru have strengthened their positions in the Latin American market. In the screenshot below, we can see key points — from the current status and market potential of Latin American countries to the direction of technological development and potential threats:
The markets of Peru and Brazil are just beginning to develop. One of the main risks there is the prospect of intense competition due to attractiveness for investors.
While not everyone in Peru has a mobile phone yet, the U.S. is taking a big step towards applications. Online casinos and mobile casinos represent the American dream. Studies show that some respondents view casinos as a source of income. This raises concerns about gambling addiction and possible countermeasures:
In Ontario, the gambling and betting market is trying to adapt to users. However, the legislative base of this region aims to restrict development:
The main obstacle to the UAE market for the development of the gambling industry is the conservative culture of residents.
Nevertheless, the gambling business is developing as a resort industry and attracts wealthy tourists.
The UK market is stable: the gaming business is legalized and relatively safe there. What is truly interesting, though, is the statistics of Finland. According to it, 80% of the population is somehow involved in gambling. That is, almost the entire population, except for children and financially incapable citizens:
The Swedish market is also stable. The government believes that the legalization of gambling in 2019 was successful. By July 1, 2024, they plan to increase taxes from 18% to 22%:
Nigerian countries are on the path of developing online gambling. Their market is promising but unstable, partly due to the lack of centralized legal regulation of the gambling business:
Special attention should be paid to the development of online gambling but keep in mind the competition from neighboring countries:
In 2024, the Indian market will be remembered by gamblers and bettors for increased tax rates — up to 28%, or possibly higher. High official taxes force users to turn to unofficial platforms. As a result, cybersecurity threats arise:
What conclusions can be drawn from the above data? Pay attention to the next screenshot and the conclusions drawn from it:
Latin America has an advantage as the region with the most profitable prospects for gambling in 2024, followed by North America and Europe. The Asia-Pacific region is also promising. But the markets of Africa and the Middle East, although promising, will occupy a smaller share of the market in the near future.
The Chief Commercial Officer at SOFTSWISS is betting on Brazil as a new center for the development of the iGaming industry:
"The entry of Brazil into the regulated gambling business in 2023 is important for the entire industry. In terms of population, Brazil surpasses any European country or U.S. state. And now they are fighting for the right to independently control the gambling industry. This signals a transition to organized and reliable markets worldwide." — Max Trafimovich, Chief Commercial Officer at SOFTSWISS
Revenue of the Gambling Business in Numbers
In the European iGaming market, revenue from the gambling business increased by 23%, reaching €108.5 billion or $115.7 billion in gross gaming revenue (GGR) in 2022. These figures demonstrate the industry's stability and growth potential. Only the online segment jumped by 8% compared to the previous year.
Taking Brazil as an example: new laws helped create 200 legal jobs — workers needed to monitor the legality of sports bets. The legalization of casinos and bookmakers ensures a stable influx of money into the treasury. This is particularly significant for third-world countries: in Colombia, taxes from legal casinos helped to develop healthcare and government services.
Integration of Artificial Intelligence
The gaming industry quickly recognized the potential of AI, leading to the implementation of AI tools in marketing, design, analytics, and the individual gaming experience.
At the top is the use of AI for machine learning: 73.9%. The AI share in the blockchain and cryptocurrency sector is 13%. The use of AI tools for cookie abandonment and improvement of Big Data technologies accounts for 8.7%. Other industries, such as design and advertising in the iGaming vertical, use AI at 4.4%.
Particularly noteworthy are the first gambling games and designs for applications and websites created by AI, as well as data from beta tests collected faster by AI than humans:
80% of design work in creating casino applications is done with the help of Midjourney.
In addition, chatbots, virtual assistants, and 24/7 customer support services are being implemented. They are also based on artificial intelligence.
AI features in fraud prevention and cybersecurity enhancement are beneficial to the gaming industry as a whole. Legal bookmakers and gambling houses will be able to protect user accounts and even use biometrics for secure authentication.
When discussing gambling while keeping the benefits in mind, there are two key points to consider:
- AI in the future will help identify and block fraudsters;
- Artificial intelligence will take care of gambling addicts. While it's difficult to imagine how this technology will work exactly, AI tools will collect data on gambling addicts. Early assistance may be provided to them.
Cookie Rejection
The rejection of cookie technologies is not a new topic. So far, the rejection of this type of data collection has been postponed to 2024. But this time, SOFTSWISS is almost certain that cookies will disappear. Therefore, in the report, they have prepared several recommendations.
"Life is a game..."
In addition, we observe a trend towards gamification. It's everywhere, even in betting, with gaming characters, leaderboards, and storyline elements. Here are a few examples of gamified content:
- Storytelling and mascots in applications.
- Loyalty system rewards, for example, for daily app visits.
- Rewards for donations, tournament prizes, access to blocked content.
Esports is also gaining traction and a target audience: from $474 million in 2021 and, according to forecasts, up to $577 million by 2024. This will increase the profits from bets in the esports industry. According to forecasts, the market could reach $3.2 billion by 2027.
Responsible Gambling (RG) — Responsible Gambling Concept
Contrary to the prevailing opinion, casinos do not benefit from gambling-addicted visitors. This will become especially noticeable in the near future, thanks to the strengthened trend of casino legalization.
44% of respondents support measures for responsible gambling. The rest either view the initiative neutrally or believe that gambling addiction and susceptible players do not affect the gaming industry. In reality, the development of such initiatives for mental health in gambling is influenced by several factors. Media and public opinion hold the top positions.
Maltese amendments have also become a significant factor in tracking dependencies.
Marketing Strategy for 2024
The promotion of the gambling industry is moving through the realms of influencer marketing. Opinion leaders, bloggers, will play a crucial role, with a focus on native advertising, vertical videos, and organized events on the topic of iGaming.
The next stage of promoting the gaming industry is affiliate marketing. It pursues several goals, including:
- Constant attraction of new players;
- Expansion of industry influence;
- Increased brand recognition.
Conclusion
The gaming industry has taken a step forward towards legalization. The whitening of the business has brought unexpected consequences: now online casinos are not only chasing profits but also participating in social spheres — charity, environmental advocacy, and caring for the mental health of players.
New promising markets for development have opened up. One of the largest is Brazil. The Arab Emirates are promising for gaming tourism. Overall, the online world and the general gamification of content have emerged victorious. 80% of gaming interactions occur through applications and mobile devices. However, the romance of offline casinos persists: the trend of social interaction with real players shows no signs of disappearing.
In the near future, an increase in casino revenue is expected to be roughly doubled — thanks again to legalization. The pinnacle of technological achievements in gambling establishments will also be artificial intelligence: its capabilities are widely used in creating advertising videos and creatives, as well as in data analytics and cybersecurity.
