Online Casino Management: Aspects of the Operation in Foreign Markets in 2021

Andrew Price
Posted by Andrew Price
2WinPower Partner, owner of the gambling establishments network.
2021/03/25

The iGaming industry has been growing rapidly for a long time but there has never been such a global rise as in 2020. Massive prohibition on visiting land-based casinos forced gamblers to move to the online space.

In March 2020 alone, the volume of the digital market increased by 3%. According to Gambling Craft forecasts, the industry will continue growing, and in 2021, the revenues of the online sector will increase by another 7%.

Online casino management in 2021

The 2WinPower team has prepared a list of major market changes and the most promising trends.

Operators of virtual platforms should pay attention to the following tendencies:

  • tightening of the regulation of foreign markets;
  • global mobilisation of traffic and the “Mobile First” phenomenon;
  • popularisation of cryptocurrencies;
  • increase in the coverage of casino games on social networks;
  • introduction of VR and AR technologies into the game content.
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Legislative Changes: Updated Work Rules in Foreign iGaming Markets

In 2020-2021, many countries revised the regulation of the gambling market and made several amendments to the existing legislation.

Despite the tightening of international control standards, entrepreneurs have more opportunities to distribute mobile products. Since March 2021, casino software can be downloaded in Google Play in 19 countries all over the world.

Legislative innovations in foreign gambling markets

Advertising restrictions

In Spain, operators cannot use media networks during the daytime. To promote casino games, a “break” is allocated from 1 am to 5 am

Blocking of traffic

Since the summer of 2021, the Curacao regulator will automatically block users from those countries where gambling is strictly prohibited

Limited bets

Finland and Belgium have introduced daily and monthly limits on user deposits. They can place bets of no more than 500 euros per day.

In the UK, the daily betting limit is 50 euros

New tax rate

From July 2021, online casino operators in Germany will pay the following additional commissions:

  • 8% of the profit from slot games;
  • 5.3% of the income from video poker

Games without credits

The UK Commission does not allow casino operators to accept bets that were placed via credit cards

The Best Offshore Jurisdictions for Legalising iGaming Projects

Offshore jurisdictions for legalising casinos

Specialists of the 2WinPower studio have made a list of countries with the most convenient and favourable conditions for running a casino business:

Curacao

More than 450 international gambling projects are registered in this offshore zone. The local regulator makes every effort to attract new foreign investors and offers the following benefits:

  1. Simplified licensing scheme. The jurisdiction issues a single licence for all types of gambling activity.
  2. Loyal working conditions for network projects. Operators can buy a Curacao master licence and organise their affiliate networks, as well as work under the White Label scheme or a franchise agreement with the right to transfer a sublicence.
  3. Minimum tax liabilities. No commission is charged on the income from local traffic. Entrepreneurs pay only 2% of the profits from the foreign audience.

Malta

The jurisdiction controls about 25% of all gambling projects. The local regulator offers licensees the following benefits:

  1. Reduced tax burden. Operators can count on a refund of 6/7 of the total amount of paid taxes.
  2. Access to the .com domain zone. Online casinos can work with all countries that are not included in the list of the Financial Action Task Force.
  3. Several types of licences. Entrepreneurs can obtain a permit to work with local and foreign traffic, a certificate for the development of gambling products, a licence for the distribution of content, etc.
  4. User protection. The local regulator has developed a unique set of rules to protect gamblers. Casino visitors can contact an authorised body to resolve controversial issues, check the number and validity of the operator's licence, and come up with the suggestion related to the optimisation of the control system.

The Isle Of Man

This jurisdiction has an impeccable reputation in the field of casino licensing and control over gambling projects and is included in the white list of the Organisation for Economic Co-operation and Development.

Advantages of obtaining a licence on the Isle of Man:

  1. Minimum tax burden. The local Commission does not charge any income tax. Operators pay only 1.5% of the total income from casino games.
  2. Customer advocacy. Since 2001, improved standards for the protection of gambling companies and a special program for resolving legal disputes with gamblers have been operating in the offshore zone.
  3. Operation in the .com domain zone. Casino owners can generate traffic from any part of Europe or the CIS countries.

Global Mobilisation of the Gambling Market

In 2017, just 10% of the industry's total income was accounted for by mobile games. According to the forecasts of H2 Gambling Capital, in 2021, mobile gambling will bring 50.8%.

The growth trend will be still relevant in the next 3–5 years. By 2025, the volume of the mobile gambling sector will exceed 58.2%.

The large-scale popularisation of mobile gambling has led to the appearance of the Mobile First trend: first, developers create content for smartphones and tablets, and then they adapt it to desktop versions.

Another trend that is gaining popularity in 2021 is the combination of mobile solutions with AR and VR technologies. Pilot projects in the VR format have already been released by the flagships of the IT industry: Google, Microsoft, and Oculus.

Transition of the Gambling Market to Cryptocurrency Payments

Cryptocurrency payments in gambling

After recent events, when the cost for a closed block fell from 12.50 to 6.25 bitcoins, this digital currency broke another growth record. At the start of this year, the cost of the BTC increased by 61% and reached 55 thousand dollars.

Several large industrial and IT corporations paid attention to cryptocurrency. In early 2021, Tesla invested 1.5 billion dollars in bitcoins. So far, this is the largest one-time purchase.

Payments in digital money are already available in the PayPal system. The CEO of Visa also announced the possibility of supporting cryptocurrency transactions. The pilot project will be launched by the end of 2021.

According to the forecasts of H2 Gambling Capital, by 2025, every second gambling platform in the world will accept bitcoin payments.

The Main Things about Running a Casino in the International Market

The decision to enter foreign markets is an important stage of the development of the gambling project, which offers operators new prospects and opportunities.

To work with minimal risks and guarantee a quick payback of your startup, it is necessary to pay attention to the following trends:

  • Renewal of the market control rules. With the global growth of the online industry, many offshore zones have introduced several legislative innovations. European gambling commissions have tightened the supervision of foreign traffic, imposed restrictions on daily deposits, and banned the advertising of casino games in media networks.
  • Growth in the mobile gambling sector. Mobile gambling brings 50.8% of the total industry income. Today, the software is first developed for smartphones and tablets, and then adapted to desktop versions.
  • The global system of bitcoin payments. Transactions in digital coins began to be supported by the international payment system ― PayPal. By the end of 2021, cryptocurrency settlements will become available through the Visa banking network.
  • Casino and Google. Since March 2021, the game content can be bought via Google Play markets in 19 countries of the world.

To learn more about the latest gambling market trends, please turn to the managers of 2WinPower.

Our catalogue contains the most in-demand releases in the industry:

From us, you can buy licences from the most respected offshore jurisdictions and order turnkey gambling projects.

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Contact us right now and become one of the market leaders already today!

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