Financial performance of Gambling operators for the past 2016 can be characterized as stable, while projections for the current year pint to sustainable increase in income rates. Slotegrator has collected information on the main trends of current and expected development of gambling.
In 2016, online gambling market increased by 9% due to changes in legislation systems of 85 countries that managed to finally legalize online gambling. 70% of gambling profits are coming both from online casinos and Internet betting companies. Players from the US, China, Australia and major European countries bring the lion share of profits.
By 2020, it is expected that online gambling mass market will reach far beyond $60 billion. The rapid growth is a result of ubiquitous, easily accessible, and advanced gaming resources.
Online gambling globalization and consolidation
Highly competitive market makes its participants think of means of survival. It is applicable not only to those who have just started making first steps in the gambling industry, but also to those who try to stay afloat. The largest gambling corporations are no exception to the rule.
It is regularly reported on acquisitions of promising companies by larger enterprises not willing to lose ground. Frequently, several brands might merge into one. For instance, you can recall the recent business merger of Coral Group and Ladbrokes companies.
Such consolidation trends will continue in the future, as competition on the market will not ease, but acquire even more aggressive features.
Experts of Ignite Research believe that association of high rollers contributes to the development of innovations and has no negative impact on the global gambling market.
Innovations as a key to success
Online gambling strives to expand its list of offers and is constantly looking for new formats and original solutions. Augmented and virtual reality, new types of games (for example, games of skills), original mechanics and architecture of slots, massive flux to live-format with live dealers - all of these will continue developing and creating new profitable trends in the industry.
2016 was marked by adoption of new legislation in the UK, legalizing cryptocurrency as means of payment in online gambling. Large operators added Bitcoin to the list of currencies to pay for services. Some resources are entirely based on Bitcoin as a unified means of payment.
The current year will keep the said traditions, and the number of gambling resources accepting cryptocurrency will grow even more. The trend derived from the absolute transparency of cryptocurrency transactions: gamblers can control the online casino operation and see how fair the game is.
This is possible due to blockchain technologies, currently revolutionizing not only gambling, but many other areas which require transparency of processes.
Additionally, online games based on the blockchain enter a new era where there is no room for manipulation and fraud. Online blockchain casinos will shortly become as familiar as the Internet and mobile phone nowadays.
The security issue has become the most pressing question among online operators. There is a problem of hacking, data theft, DDos attacks, bothering not only small entrepreneurs who are not able to protect their resources from hackers' assaults, but large operators as well.
For instance, a number of online betting companies were hacked last autumn. The William Hill website has been down for several days in a row, and given that this betting site earns $5.4 million per day, the losses from hackers’ interference and loss of reputation was significant.
Experts predict that in 2017 there will be a substantial funding to enhance the security of gambling resources.
Gambling women go ahead
Starting from 2015, the online gambling has a tendency of an increasing number of female gamblers. The most active audience is considered as women of up to 35 years. They prefer a private game via a mobile device without fear of being mocked by the male players.
There are online casinos addressed to women: their promo campaigns are designed specifically for this audience. The first was Cameo Casino followed by Pink Casino, 888Ladies, and others. The trend will continue in 2017, and a number of women among gamblers will only increase.
International means of payment for game
Online gambling has problems due to different legislations regarding the gambling. Some countries allow land based gambling houses, but prohibit their online format by blocking such sites and impose huge fines for violation of the ban.
It is impossible to completely ban online gambling: players use special programs replacing the IP address and gaining access to such resources. In this case they pay for services with credit and debit cards of international standard.
Tendencies towards socialization
The gambling market modifies services, offering new forms of familiar games. In recent years, there has been a trend towards socialization and mobilization of game content. Users enjoy playing through social networks and mobile gadgets, that is why operators have turned their attention to this sector and successfully monetize their offers.
Social games suggest an opportunity to play with friends, compete, participate in tournaments and competitions, interact and communicate online. The last trendy games of Free To Play format are available to play for free. However, in order to win and get ahead, it is necessary to purchase special goods to strengthen the capabilities. The trend towards socialization will be going on within current year.
Offline gambling growth directions 2017
The success of the land based gambling development is influenced by a number of factors, including the regulatory policy of countries, volume of markets, business climate, and the existing demand for traditional services and trends for its growth.
The Macau gaming zone has been going through hard times in the last few years. The market has collapsed and now it is gradually getting out of the abyss. Last year, there were prospects for progress. They will continue if some external factors do not interfere with the process.
Such factors can be caused by pre-election threats of US President, Donald Trump, to China regarding trade relations between the countries. So far, 55% of Chinese gambling revenues are received from VIP players, which constitute no more than 100,000 people, as opposed to the remaining 30 million casino visitors in Macau.
China's markets has started to focus on consumption, salaries are growing, middle class is expanding - these factors indicate that gambling revenues will grow and its geography will expand, influencing neighboring countries - Vietnam, Russia, Malaysia, and others.
United Stated of America
Experts expect a boom in the gambling business and predict growth in the online sector under certain circumstances. All this can shortly happen after the fulfillment of Donald Trump’s election campaign promises, initiated by his advisors conducting the gambling business.
Trump is directly related to gambling (previously owned the Taj Mahal casino in Atlantic City). His closest associates, Sheldon Adelson, Phil Ruffin, Steve Wynn, Carl Icahn, also have a direct and indirect relevance to the gambling business. The only problem is that all these individuals are zealous opponents of online gambling. If they are convinced of the online business profitability and prospects, then online gambling will be legalized in 2017.
Other world’s gambling markets
The important markets of Germany, Brazil, India, and Japan have huge human resources in their disposal. Such success is resulted by an increase of people’s income and their passion for gambling, as well as a stable developing economy.
New regulatory acts adopted recently in the countries create favorable conditions for the development of gambling, outlining the prospect of fabulous revenues in 2017.