Gambling Industry: What Will the 2020 Show? 2WinPower Experts Talk About the Trends
Online gambling is included in the list of extremely prosperous market segments in terms of capital expansion. A vivid confirmation of the rapid economic growth of the niche is statistical reports and forecasts.
In 2016, the industry’s turnover did not exceed 37.91 billion dollars. Today, revenues of the gambling industry reach 47.11 billion dollars, which is five times higher than in 2012.
According to analysts, until 2020, the casino business will grow by about 7.9% annually and reach the figure of 60 billion dollars. There are grounds for believing that the gambling business will undergo several changes, which we will discuss in this article in more detail.
Table of Contents:
1.1. United States
1.3. The African Region
1.5. The Asian Market
2.1. Pocket Game
2.3. Virtual Reality
The first thing that an entrepreneur should remember is the wide range of legislative regulations and restrictions that have become the reason for the development of gambling zones. Among the largest niches, it is worth mentioning several main ones.
Currently, the virtual gambling industry in the USA is of a “grey" nature. However, all over the country, there is a massive activation of those who support the legalisation of the market.
According to experts, very soon, the country will open access to the domestic market for foreign corporations. A prime example is Pennsylvania. This is the fourth state after Nevada, Delaware, and New Jersey, in which the online gambling business has become an absolutely legal activity.
Online business has gained the greatest popularity precisely in the European territories. Over the past year alone, the profit markup has reached 84%.
The enormous popularity of the industry can be explained by the following factors:
- The zone of open trade.
- A rich selection of international partners.
- A well-functioning banking system.
- The craving of government representatives for creating a single protocol for controlling the gambling industry.
- A simplified taxation system in key “zones of concentrated gambling” — on the Isle of Man, in Gibraltar, and Malta.
Some countries also quite often introduce tax exemption in the field of iGaming. For example, such a move in Spain caused a 20% increase in income of the gambling industry.
Another important fact in favour of the development of the gambling industry in the European market is the constant modernisation and mass availability of new technologies.
Suppliers are doing their best to meet the requirements of the young market: traditional slot machines quickly make gamblers bored, so the industry always pleases them with new products — from eSports betting to virtual reality.
This zone is now at the initial stages of its development but it already demonstrates significant growth.
According to statistics provided by KPMG, the main brake on the growth of the market is the lack of infrastructure: telecommunications, banking enterprises, payment services, and user verification tools.
According to Gambling Capital, a player in Australia spends about 1,000 dollars annually on his “weaknesses”. The overall losses of users have increased by 7.7%. These are the highest figures on the planet.
Local authorities are very unhappy with this situation, and they came to the conclusion that it is necessary to significantly tighten the control over the advertising of gambling and place a ban on online poker. However, it is still easy for people to play slot games: in Australia, they are located both in special establishments and in bars.
The casino entertainment niche in Asia is already extremely large, and it shows constant growth.
Among the factors in favour of its rapid development, we can name the density of population (about 60% of the world population lives on this continent). At the same time, experts see a clear lightening in the legal sector.
According to analysts from Research and Markets, by 2020, the Asian sector will grow by 7.3%.
Probably the first thing that we should mention is the reduction of the numbers of land-based casinos and a widespread (a planet-scale, actually!) move to the online space.
Even the most sceptical people now have no doubts that the entertainment business was moved to the virtual world. It is very important that entrepreneurs answer the question of how to attract and retain customers.
A modern businessman must not depreciate the role of mobile gadgets. Hundreds and thousands of operators all over the world are closing the door on desktop solutions, preferring mobile gambling. But there is more: the appearance of smartwatches on the market has turned the ordinary and familiar device for tracking time into something that can steal the leadership of smartphones and become the most affordable and functional communicative gadget.
According to forecasts, by 2020, the industry of smartwatches will bring a profit of 32.9 billion dollars. An interesting fact is that the Microgaming corporation has presented the possibilities of smartwatches in the field of gambling back in 2015, introducing a unique slot called Dark Knight Rises.
Many experts have repeatedly mentioned the benefits of a virtual payment system. According to Huobi research, more than 70% of international gambling investors have expected significant growth in the cryptocurrency market by the end of 2018. This trend is still relevant.
What seemed like an invention of science fiction writers a few years ago may turn into one of the safest and most popular methods of paying for gambling entertainment and other services of the online industry in the next one or two years.
Playing with a live dealer (for example, a poker business) has become extremely popular with users. Full immersion in the process allows players to feel that they are a part of something more than a click on the buttons in the browser window.
The pioneer in the field of virtualisation of games with live dealers is the American concern Golden Nugget. The company offers a roulette game, which is broadcasted directly from the gambling room in New Jersey.
The use of AI technologies in the field of control and marketing of the gambling industry opens up many prospects and opportunities for operators.
Tactics of AI in the gambling business management
Marketing related to the attraction of users
The use of innovative technologies will allow operators to automatically offer each specific visitor the best idea or a set of games that can involve this particular participant in the process
Customer retention system
Artificial intelligence is a unique opportunity to instantly analyse the expected behaviour of gamblers and choose a specific plan of actions based on multi-structure analytical reports
Management of risks of fraud
With the help of new technologies, the following segments can be significantly improved or completely modernised:
The gambling industry is constantly changing. It would seem that a decade ago, stories about virtual reality and virtual currency that exists only on the Internet were perceived as fantasies of teenagers. However, nowadays, it is not just our — innovative technologies have long become part of our everyday life.
In 2WinPower’s portfolio, operators can find the most popular games. We are ready to offer you unique products of the world's leading suppliers, as well as relevant analytical reports and forecasts of the respected experts.
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