Companies from various economic sectors face various risks every day, and gambling startups are no exception. Such risks can be effectively managed, thus increasing the profitability of the casino business and polish the operator's image.
This is a comprehensive system, which is based on strategic planning, operational control, and rapid anti-crisis measures. The aim of the solution is to anticipate as many problematic situations as possible and minimise their impact on the work of entrepreneurs.
Risk management in the gambling sphere is often used in connection with:
In big iGaming companies, the board of directors is responsible for risk management, while operators with a small annual turnover have to independently perform active and strategic tasks.
If an entrepreneur has established a gambling business under a franchise agreement or a White Label scheme, then the parent company will deal with the anti-crisis management issues.
Casino owners can outsource these functions. As a rule, there are specialised organisations that solve financial and legal problems.
At the beginning of 2021, the Enhanced Due Diligence analytical resource analysed the risk management work of 60 large gambling providers from Europe, Asia, Africa, and America.
Based on the results of this study, EDD specialists identified 5 core groups of risks faced by the representatives of the gambling industry:
Risks associated with legislative amendments and the use of administrative measures ― the imposition of a fine, suspension of a licence, freezing of investment projects
The risk of unfair competition in the gambling market, which damages the image of casino operators. It includes the publication of untruthful information in the media, the organisation of aggressive advertising, and other similar actions
Threats related to the violation security of gambling projects and intellectual property theft
Risks of unplanned financial expenses of entrepreneurs ― payment of penalties and fines, theft by fraudsters, and inappropriate use of bonuses
Problems due to the non-compliance with international policies that are aimed at anti-money laundering and combating the financing of terrorism
Leaders of the gambling market actively use risk management tools in their current operations and strategic activities.
Let us consider several software vendors of the most in-demand iGaming solutions:
The organisational structure of the Swedish manufacturer of slot machines has a dedicated risk evaluation department.
NetEnt minimises the impact of any risks due to:
This is the biggest lottery and betting company in Europe. Due to the specifics of activities of the brand, the main part of its risks is associated with daily losses due to the gamblers' winnings. Therefore, the provider uses the average cost method when setting the sizes of bets.
The company rations out the odds across all popular sports events and lottery drawings. In the long run, it brings the average profit on a large number of bets. Even if some of the customers hit the jackpot, expenditures for the payment of the prize money will not change the overall level of the operator's income.
The risk management strategy of the live casino provider boils down to:
The product performs a number of tasks related to:
The installation of security software will raise the level of protection of a gambling project against internal and external threats and increase the level of confidence of users.
Entrepreneurs can focus on the strategic business scaling, while dedicated security services will be responsible for operational risk management.
The 2WinPower catalogue contains complex solutions from the following software vendors:
From 2WinPower, you can buy solutions for the protection of gambling resources. We offer security software separately or together with a ready-made gaming site.
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