Synergy Between Online and Offline Platforms: Key Features

The Evolution of Gambling

The history of entertainment for money goes back thousands of years. The first locations of this type appeared in Ancient Greece and Rome. They were extremely in demand among the population.

An important stage in the spread of such a pastime is associated with the Renaissance. Back then, halls with card games began to actively appear in Italy, and a little later, in the 17th century, the first legal casino opened. A place called Il Ridotto was located on the banks of the Grand Canal in Venice and attracted rich people from all over Europe.

With the advent of the Internet, the gambling landscape has undergone major changes. In 1994, the first virtual bet was made, which marked the rapid growth of the iGaming sector in the future. Today, it generates $100 billion in revenue per year, creates hundreds of thousands of jobs, and develops the related infrastructure.

The rapid growth of the niche is an undeniable fact.

The International Gambling Report 2023 from YouGov reveals that:

• 63% of respondents prefer digital solutions to offline entertainment;
• 70% of players in the UK place bids more often on the Internet than in land-based halls;
• 58% of users from the USA visit online casinos;
• 76% of Indian gamblers prefer virtual betting.

Most experts explain the active capitalisation of the iGaming vertical by the consequences of Covid-19 but similar trends were observed before 2020.

In 2018, Mariano Choliz, a professor at the University of Valencia, published an article. There, the author pointed out the rapid global increase of spendings on online games for money since 2012, while the costs of creating traditional entertainment remained at the same level.

Cooperation Between the Online and Offline Sectors

Digital platforms often imitate the work of land-based establishments. They use live dealers, video chats, and other tools that exert a qualitative influence on the audience’s attraction and retention. However, iGaming portals cannot yet provide the same experience as offline locations. For this reason, it is still too early to talk about the end of the casino era.

Perhaps someday, virtual platforms will be able to give players the same sensations and emotions as traditional halls. However, at the current level of technological development, it is becoming obvious that land-based operators are not much inferior to their colleagues from another segment.

Therefore, the best solution in this situation is synergy between digital and offline establishments.

Benefits of Combining Classic and Virtual Casinos

It is worth noting that the virtual sector does not take away market share from the ground-based niche but, on the contrary, expands the geography of the gambling industry. The combination of online and offline projects leads to success. It increases business profitability and provides a realistic user experience.

Let us consider the key advantages of such synergy:

Increased Availability

By offering an audience offline and online platforms at the same time is a proven method of reaching more clients.

Traditional casinos are often limited by their geographical location. Presence on the Web, on the other hand, allows such venues to quickly enter new markets that were previously inaccessible. Thanks to this, regular players can interact with iGaming brands via the Internet without losing contact with their favourite and time-tested company.

Synergy between virtual and offline platforms is the surest path to increase the customer base. Entrepreneurs can quickly attract solvent clients, for example, from the millennials.

Seamless User Experience

Having decided to combine land-based and digital casinos, business owners make gamblers get pleasant impressions by:

• ensuring smooth and uninterrupted play;
• synchronising data between different devices (classic slot machines, consoles, PCs, and gadgets);
• supporting fast and secure transfers.

According to a study by PayNearMe, 63% of US online players would like to make deposits at physical locations to replenish their online accounts. They find this approach more convenient and reliable. Another reason is the ability to control expenses more effectively.

Cross-Promotion

An iGaming platform can serve as an excellent advertising spot for a land-based hall by offering:

• exclusive promotions;
• bonuses;
• special events for online customers.

Traditional casinos guarantee their visitors an exciting interactive experience with generous gifts. Such a combination motivates people to interact with the brand through different communication channels and affects the growth of traffic as well as the overall profitability of the enterprise.

Customer Base Expansion

The synergy between online and offline locations speeds up the collection and processing of information on:

• preferences;
• gaming habits;
• demographics, and other characteristics.

The obtained data can be used to optimise marketing strategies and provide a personalised experience. All this increases the satisfaction and loyalty of gamblers. Users will play more and remain loyal to the entertainment brand.

Diversification of Revenue Streams

Integration of the online component into the structure of a ground-based casino allows you to intelligently divide cash flows, as well as protect the business from unforeseen circumstances. These are economic downturns, changes in legislation, and other factors that industry representatives often face.

Additional income from an offline or digital vertical can serve as a reliable buffer against market fluctuations. It will also ensure a quick solution to the crisis with minimal financial losses.

Shift in the online world allowed the owners of traditional locations to stay afloat during Covid-19. Many entrepreneurs created rooms for live broadcasts in idle spaces, which protected them against bankruptcy and guaranteed a quick recovery after quarantine.

Adaptation to Changing Trends

The casino industry is constantly evolving. New technologies and tendencies that affect the nature of the game and interaction with the audience appear quite frequently.

The merger of the land-based and digital sectors demonstrates that operators are ready to:

• adapt to changing trends;
• remain relevant in a dynamic digital world.

Today, offline entertainment projects are adding mobile apps, virtual reality, live dealer solutions, and other components. They help firms stay ahead of the curve and solve the audience’s immediate needs.

Elements Necessary for Combining Traditional and Online Segments

The main nuances that operators should take into account:

Demographic Features

The activity on iGaming platforms and in land-based locations is similar. But the preferences of customers may vary depending on the platform used.

Let us consider the results of a research by the Journal of Gambling Studies:

• 29,6 years is the average age of online poker players. Almost 75% of respondents are under 35 years old. Visitors to virtual casinos also tend to belong to the 18–35 age group.
• 70% of revenue from traditional slot machines comes from clients over 55 years old. The largest share of income comes from the 60–70 year old audience and the smallest is the 20–30 category.
• 66% of men prefer to bet only on the Internet. For women, this figure is lower (58%).
• $75 thousand per year is the profit of the average gambler in developed countries. Such a person also usually has a higher education and treats casino entertainment as a way to have fun. In other regions, players, on the contrary, have low incomes and try to benefit from the placement of bets.

It is very difficult to take into account all demographic factors. Therefore, most operators try to create a balanced product range. The catalogue includes various positions (from popular slots to traditional bingo and keno) and interaction formats (from tournament competitions to one-on-one sessions against a virtual dealer).

Licensing

In many countries (mainly in Europe), to work simultaneously in the ground-based and digital sectors, 2 permits are required. The list of requested documents and rules for applicants also vary depending on the type of activity that operators choose.

There are also jurisdictions where businessmen can obtain an integrated permit. Basically, these are offshore zones (Malta, Curacao, Alderney, and the Isle of Man). Local regulators issue a general certificate allowing entrepreneurs to accept bets online and offline.

In the USA, the work of ground-based casinos and digital platforms, although regulated at the federal level, differ depending on the territory. Most of them allow the operation of classic casinos (in special zones and centres, as well as on Indian reservations).

The iGaming vertical is just gaining momentum. Today, online betting is legalised in only 6 states.

Reliable Software

The main requirements for software include:

1. Fault tolerance. Program components are responsible for cross-platform play on several devices without delays, failures, and other malfunctions. For this reason, the solution has increased requirements for security and performance.
2. Built-in CRM module. It is responsible for the relationship between connected units of equipment, timely exchange of information, as well as the creation of detailed reports and analytics. In such a system, it is also possible to form a loyalty program with different levels and types of rewards for online and offline clients.
3. Payment service. It should integrate popular non-cash settlement methods and the ability to replenish a casino account using cash. An excellent option is support for mobile and voucher transfers, which are preferred by visitors to gambling venues.

The Main Things about the Synergy of Offline and Digital Locations

The combination of both directions has many advantages for operators.

Key aspects that project owners need to take into account:

• The benefits of such a decision include increased availability of products for players from different regions, cross-promotion, and an expanded customer base. The diversification of income sources and the reduction in operational risks are also an undoubted plus.
• To provide synergy, it is important to consider the demographic characteristics of the country, the regulatory framework, and the rules for issuing a licence. An important nuance is the purchase of reliable software.

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• integration of games;
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