Web Casinos in 2024: Why It Is a Profitable Niche

The entertainment industry is growing rapidly, new startups are constantly emerging, and promising markets are being launched.

Stable Growth of the Industry

According to the report of the IMARC Group online edition, in 2022, the global iGaming segment reached $79.8 billion. Analysts predict that by 2028, it will be estimated at $133.9 billion thanks to the CAGR level of 8.5%.

Among the key segments of the niche that will bring the greatest income to investors, we can name web casinos, betting shops, and poker rooms on the Internet.

The industry’s development will be affected by:

• active digitalisation of the economy;
• the legalisation of such entertainment in many regions;
• increasing incomes of the population;
• creation of new promotion methods with a focus on the users of gadgets;
• introduction of information technologies.

Europe remains the most profitable gambling region. IMARC Group analysts claim that by the end of 2022, the sector brought $40.6 billion in revenue, that is, 50.8% of the total market. The EU has developed clear and transparent legislation for this sphere, the banking sector, and information technology. However, centuries-old casino traditions have been preserved.

The Asian market is considered one of the most attractive. The Philippines is the leader when it comes to the number of implemented iGaming projects since both online and land-based betting is allowed there.

The leadership among large amusement complexes is kept by Macau and Singapore. The most popular type of entertainment there is games with live dealers: roulette, Sic Bo, poker, baccarat, and blackjack.

Africa also has enormous growth potential. In recent years, there has been an active digitalisation of the economy, a significant improvement in the internet connection (the emergence of 4G and 5G transmission towers), and the introduction of modern banking products. The gambling market is also growing, especially in the sectors of mobile casinos and sports betting.

Transparent Licensing

Games for money are part of a highly profitable industry, which is legal in many countries. Moreover, the authorities are constantly working on optimising the regulatory framework.

The main purposes of the changes:

• improvement of communication with entrepreneurs;
• facilitation of acquiring a permit;
• growth of revenues to the budget;
• improved user protection.

Successful iGaming startups can be launched in many countries but the most favourable conditions are created in such offshore zones as:

Malta

The island state is famous for its active support of gambling and business or private educational initiatives at the governmental level. There are more than 450 digital casinos registered in the country, including such famous brands as Betsoft Gaming, Pragmatic Play, Yggdrasil, Playtech, etc.

Entrepreneurs appreciate Malta for:

• transparent licensing conditions;
• developed IT infrastructure;
• access to top-qualified staff;
• the loyal tax burden on businesses.

Alderney

It is known for the fact that it issues temporary permits for 59 calendar days. To be able to implement an iGaming project in a simplified way, entrepreneurs must hold licences obtained in another country.

Operators get the right to quickly and cost-effectively enter the promising gambling market, evaluate all its advantages from personal experience, and only after that apply for a full B2C or B2B certificate.

The Alderney Gaming Commission is responsible for the issuance and processing of permits. The fee for a new application is £17,000 and for the renewal of a document — £35,000–80,000.

Curacao

The offshore zone was the first in the world to start providing casino licences (since the early 2000s) and certificates that allow businessmen to own Bitcoin gaming sites (since 2017).

At the end of 2024, the island government announced large-scale changes in the regulation of the sector. Innovations are designed to simplify and secure the work of companies.

Advantages of working in the country:

• one certificate for all types of services;
• low cost of the document;
• minimum tax burden;
• regulated cryptocurrency market.

The Isle of Man

It grants permits depending on the chosen business model. Entrepreneurs can get a master or sublicence, a network certificate for the provision of hosting services, and a B2B document that allows for supplying software for casinos.

The regulator requires low taxes: operators pay 0.1–0.15% of GGR depending on their monthly turnover.

Gibraltar

The United Kingdom Overseas Territory offers clear licensing terms and favourable fiscal rates. Entrepreneurs pay just 1% of GGR, given that the maximum levy is limited by the sum of £425,000 per year.

Benefits of implementing an iGaming project with the local permit:

• low competition (only 50 casinos are registered in the jurisdiction);
• advanced licensing legislation;
• a good reputation of the country;
• the requirements of all market participants are taken into account (licenses are provided for B2B companies, as well as the owners of gambling platforms and virtual betting shops).

Availability of Technical Innovations

IT solutions make iGaming projects more secure, modern, and interesting for the audience and profitable for operators.

In 2024, the following innovations are most often used:

1. Artificial intelligence. The program performs a wide range of routine tasks — from identifying customers to informing players about new promotions and bonus offers. Based on AI, chatbots are created, which are connected to the backend of a casino platform. Smart services can instantly detect atypical behaviour on the website and block fraudsters.
2. VR and AR. Such innovations improve the user experience. These technologies allow developers to recreate a 3D gaming space and make clients feel as if they are watching a full-length movie in an IMAX cinema. VR and AR slots are becoming available to the audience due to the appearance of budget equipment (glasses, helmets, and headsets) in the product range of such companies as Apple, Sony, and Samsung.
3. Blockchain. First of all, we are talking about cryptocurrency — a popular payment method in many digital casinos. The use of blockchain increases the security of iGaming sites since all confidential data is protected from theft and changes. The solution is part of NFTs — non-fungible tokens. These are unique objects (games, characters, and bonuses), the cost of which is constantly growing.

Automation of Operators’ Everyday Tasks

Modern casino platforms come with a built-in CRM system.

Universal software performs a wide range of functions:

• real-time platform management;
• creation of detailed analytics based on key business indicators;
• launch of marketing campaigns;
• conducting B2B settlements (for instance, with hosting and program providers);
• integration of additional security modules, partner marketing networks, etc.

Innovative casino platforms operate based on Big Data.

The software collects and analyses terabytes of information (about the preferences of clients, current games, market conditions, and changes in the regulatory framework). Based on the received data, operators can make the right decision about the promotion and scaling of their business projects.

Availability from Any Destination in the 24/7 Format

Online casinos are open 24/7. Players can visit such resources at any time of the day, make a successful bet, and cash out the prize. Everything happens quickly and safely: the main thing is to have a stable Internet connection.

Access in the 24/7 format increases the money turnover in gambling establishments, the size of the average game check, and the profit of entrepreneurs.

The integration of a chatbot allows operators to be in touch with their customers at any time, instantly respond to their requests, and promptly solve problems that may appear (assistance with verification, as well as the deposition and withdrawal of funds).

The decision to add cryptocurrency payments will expand the geography of users. Blockchain ensures the anonymity of transfers, so they can deposit money and withdraw it from anywhere in the globe. Gaming is becoming available even to residents of states where casino entertainment is considered illegal.

Clear Strategy for Working in the Market

The launch of a project must be built on a comprehensive strategy but it is impossible without drafting an operational plan. The document contains the main stages of opening and promoting a company, the expected profitability indicators, and the programs used (games, platforms, and security systems).

Later, the document will need to be sent to the authorities of the jurisdiction where you want to obtain a licence. The regulator analyses the online casino development plan for the next 5 years, and based on this, decides whether to grant a permit.

The business strategy includes expected KPIs — key performance indicators:

• conversion;
• gross gaming revenue;
• net gaming revenue;
• Cost Per Lead;
• ROI, and other metrics.

Planned KPIs are compared with real indicators of profitability and ROI. Calculations are carried out in the context of each reporting period. It can be a month, a quarter, or a year. The information received gives an idea of which direction the gambling enterprise is moving and whether it needs an additional infusion of funds.

To launch a successful iGaming startup, entrepreneurs need to:

• choose a country where they will obtain a licence and provide services;
• acquire a platform and additional programs (games, security systems, and payment gateways);
• develop a website design and come up with a corporate identity;
• sign an agreement with a hosting service provider;
• launch an advertising campaign.

Well-Thought-Out and Effective Marketing

In 2024, to promote a casino project on the Web, several popular methods can be used:

1. SEO. The main actions are aimed at improving the position of the gaming site in the search results. Most often, experts are guided by the rating of Google and Yahoo but marketers from the CIS countries mostly take Yandex into account. Search engine algorithms assess the quality of the content (information about games and licences), availability of a mobile version, page loading speed, compliance with security requirements, etc.
2. SMM. Such advertising is aimed at attracting users of social networks — Facebook, Instagram, Telegram, Viber, and others. This is the most solvent category of customers, which brings a good income to operators. Each social network has its media plan. It takes into account the available marketing tools and advertising restrictions.
3. Targeted marketing. The intended interested group of players is divided into categories. A separate acquisition and retention campaign is created for each segment. Advertisements are shown only to the selected users, and it helps to attract more gamblers to online casinos.
4. E-mail newsletter. This is a good way to communicate with regular customers and a great method for increasing the number of repeat registrations. E-mail messages are personalised as much as possible: entrepreneurs can inform about new promotions or send promotional codes and invitations to participate in seasonal tournaments.

Performance marketing combines the benefits of all popular promotion methods. This is a modern strategy for attracting and keeping an audience, the purpose of which is to get a specific and measurable result in a short time.

The tool is rapidly gaining popularity. To promote their platforms, business owners are ready to spend money only in effective ways that give good conversion and business profitability.

Cooperation with Affiliates

Entrepreneurs can outsource advertising functions to partner services or private specialists.

Settlements are made in 2 ways:

• CPA scheme. Payment for the number of attracted leads — registered customers.
• RevShare method. The partner's reward is calculated as a percentage of the operator's income.

It is possible to search for partners through special affiliated services. Such programs are often built into the casino resource, allowing its owners to monitor the effectiveness of each marketing channel.

Benefits of affiliate advertising:

• payment only for finished and measurable results;
• the use of different platforms for promotion (social networks, banners, forums, and search engines);
• work only with the target audience;
• formation of a positive reputation for the iGaming brand.

Mobility and Independence of the Amusement Platform

The popularity of online casinos has grown during the pandemic when the majority of users have completely or partially switched to the Internet space. The business sector also takes into account the prospects of working on the Web, so in 2024, the main investments in the industry will be associated with the development of this particular area.

Virtual gambling brands are different from traditional land-based locations. Operators get round-the-clock access to their platforms, an endless flow of customers, security assurances, stable income, and other benefits.

The development of the Internet sector is associated with the active digitalisation of the economy and the spread of gadgets. Players prefer to place bets through Apple, Samsung, and Xiaomi mobile devices and smartphones.

The Main Things about the Launch of an iGaming Startup in 2024

• Experts predict the significant growth of the industry in the next 5 years. The market capitalisation will be affected by the introduction of IT technologies, the course toward the liberalisation of the sector, an increase in the residents’ income, and the invention of new promotion methods.
• Gambling is a legal form of earnings. A special licence can be obtained in such prestigious offshore zones as Malta, Gibraltar, the Isle of Man, etc.
• Among the technical innovations, we can name the introduction of AI, blockchain, as well as VR and AR. IT solutions make the gambling business better: more profitable and safe.
• The advantages of launching a site with amusements include round-the-clock accessibility from any place, automation of the operator's daily tasks, the use of a clear strategy for creating and promoting a startup, mobility, and independence.

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