The legalization of online gambling began in the early 2000s. Malta, UK, and Ireland were among the first to welcome the new business model.
The new ecosystem was perfectly complemented by irishcasinosites.com and other region-specific review platforms.
They help players find the best gambling sites and also signal to operators how to up their game and keep up with the competition.
In this article, we will delve deeper into the complex landscape of the global casino industry and explain why they aren’t immune to financial challenges. Regulations, fraud prevention, and market expansion goals don’t work hand in hand, and companies need to be prepared to navigate through these hurdles.
Regional Perspectives
Different regions around the world face unique challenges and opportunities. Cost of living, legislation, culture, and overall strength of the gaming industry in that region are all relevant factors.
Europe
Europe has long been at the forefront of online gaming regulations, but over the years regulatory restrictions have become tighter. The UK is also adding stricter gambling measures, and some of them include:
● Mandatory loss limits
● Enhanced identity age verifications
● More tools for fraud prevention
Eastern Europe on the other hand, has more lenient laws and fewer restrictions when it comes to advertising casinos. As a result, big brands are thriving in this region. The whole European online gambling revenue is expected to reach $46.94 billion in 2024 with an 11% annual growth rate.
US and Canada
Ontario changed its stance on online gambling in 2022 and now they are already starting to pump the breaks. The law underwent a few amendments in February 2024, one of which prohibits using celebrities to advertise betting and casino games.
Tribal casinos still have exclusive rights in the US, but the number of offshore operators that accept US players is growing. These brands also accept cryptocurrencies making cross-border payments a lot faster and cheaper. So, it’s possible that some of these states might resort to DNS blocking the offshore operators.
Latin America
Brazil has recently legalized online gaming and betting, with an expected revenue of $1.97 billion in 2024. The number of active sports bettors has almost doubled in this region. From 3.6 million in 2019 to 8.3 million in 2024, representing an impressive 132% growth.
Africa
Africa is expected to reach $1.85 billion in 2024, all thanks to the developed mobile gaming industry. South Africa and Nigeria are definitely leading the way for more gaming opportunities, but are also struggling to enforce age restrictions.
Economic and Market Challenges
One of the biggest financial challenges is the length and complexity of the onboarding process. The list of KYC documents is often a deterrent for some players, and it’s why they give up on the onboarding process. Many simply aren’t comfortable with sharing ID and personal information. Especially now when cyber attacks and information leaks seem to happen on a daily basis. More than half (51%) of active gamblers cite regulatory requirements as a challenge to onboarding.
That said, dishonest players also create problems for iGaming businesses. Bonus fraud and other tricks are used to gain an unfair advantage. What’s more, there are regions where people still use brick-and-mortar casinos to launder money through poker games. So it’s easy to see why regulators want to ramp up the restrictions. Moreover, facial recognition spoofing is also emerging as a threat to the industry’s financial status. Even the top-tier security measures aren’t as reliable.
How These Challenges Affect the Future
Unpredictability in the regulatory department can spell hardships for future ventures. Bigger brands can afford some hits and adapt, but smaller operators could be adversely affected. That said big losses could occur for those companies that trade publicly.
Stagnation, data leaks, or compliance scandals usually shake the trust of the shareholders. With potential new restrictions or requirements, it’s hard to say whether the companies will hit their growth targets. What’s more, they might have to collaborate with different 3rd-party reg-tech companies to stay compliant. This, of course, means an increase in operating costs.
Current Projections
According to current projections, by the end of 2024, the online industry is expected to reach $97.70 billion in revenue with an annual growth rate of 6.46% through 2029. The good news is that the industry has done its fair share of entertainment diversification. So, not all of the revenue comes from slots and table games.
That’s why many casinos have started creating different entertainment and revenue streams:
- Resorts. Many sites are transforming into full-fledged entertainment complexes. The Venetian in Las Vegas, for example, offers gondola rides, while Marina Bay Sands features a rooftop infinity pool.
- Themed Casinos. The Atlantis in the Bahamas is a great example of themed casinos. It features an aquarium and a water park in its casino resort.
- Wellness Centers. Wellness centres and spas are very common in more reputable brick-and-mortar casinos. They are very popular since you can come and relax with a massage after a gaming session.
- E-sports conventions. To attract a diverse crowd, some platforms host esports tournaments and conventions.
- VR and AR. Many brick-and-mortar poker rooms have started experimenting with VR poker rooms. Here, you can compete with players in a virtual environment.
- AI-Powered Suggestions. Some casinos use AI-recommended games, restaurants, and activities based on guests’ preferences.
Millennials and Gen Z now make up a big portion of its player base, and they have quite different expectations from older generations. Younger generations value the experience more than material possessions.