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Global Economic Trends and Their Impact on the Gambling Niche

Updated 5 july 2024

Large-scale transformations in the global economy have not bypassed the casino and sportsbook industry. The ongoing changes stimulate the sector to adapt to new conditions and requirements.

Global economic trends in gambling: features

Experts of the CASEXE studio will tell you about key market trends and how they affect the development of entertainment companies.

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Current Situation: Figures and Facts

The niche is distinguished by multi-million dollar turnover and a stable inflow of investments.

The Ibis World Internet portal provides the following statistics:

  • There are 2.35 billion active players in the world. The largest number of betting fans is accounted for by the USA (58 million), Germany (29 million), and the UK (29 million). Canada, Australia, and France also demonstrate high audience engagement rates.
  • In 2023, the total income in the offline casino sector was $263.3 billion. Analysts predict that by 2032, this figure will be $334 billion. Among the countries that determine the pace of development of land-based gambling and betting are the USA, Great Britain, and France. For many years, the largest entertainment centres have been Las Vegas, Atlantic City, and Macau.
  • At the end of the last year, the income in the iGaming segment was estimated at $108.3 billion. By 2032, the GGR indicator will increase to $370 billion with an annual growth rate (CAGR) of 10.7%. Europe remains the dominant region. Thanks to the legalisation of games for money in many countries, 41% of global revenues are generated here.
  • 52% is the share of online casinos in the global entertainment market. The second place in popularity is held by virtual sports betting, followed by virtual poker. 48% of players prefer mobile devices and 45% use desktop PCs.
  • The total number of gambling companies in the world is 4.7 thousand. These are organisers of lotteries and the B2B segment that offers ready-made business solutions.
  • Las Vegas Sands is the largest gambling brand in terms of capitalisation. The top 5 list also includes such well-known developers as Flutter International, DraftKings, Evolution, and Aristocrat.

Statistics show that the casino and sportsbook niche grows rapidly and brings stable income to investors.

The number of players and B2B companies increases every year, which provides a good basis for industry scaling. Gambling is becoming a significant part of the global economy, so the latest market trends have a huge impact on it.

Advanced Settlement Methods

In most countries, payments for goods and services are made in international monetary units. Currently, these are US dollars and euros.

This practice is convenient, understandable, and familiar to the world’s largest economies. Along with this, the interests of all market participants are often not taken into account. To change the situation, more countries are switching to mutual settlements using national currencies and independent payment instruments.

Today, the trend towards decentralised operations has captured the whole world. For example, the largest oil suppliers (Saudi Arabia, Kuwait, and UAE) conclude new contracts in local currency. China, which sells electronics and consumer products worldwide, is using a similar approach.

The most famous example of a service based on distributed ledger technology is blockchain. Its developers went even further, creating a completely autonomous financial system.

The functioning of the solution does not depend on the political and economic state in the regions, the work of banks, and other similar organisations. All this makes mutual settlements more transparent and secure for all sides of transactions.

Blockchain services are currently used in many areas. These are insurance, tourism, logistics, retail, and, of course, gambling.

Advantages of Settlements in Digital Assets

The most well-known use of the technology in the iGaming sphere is the addition of a crypto gateway.

The first casino of this type was opened in Lithuania in 2017. Since then, similar projects have appeared in many European and Asian countries.

Most entertainment platforms operate under a licence issued in Curacao or the Isle of Man. These jurisdictions are most supportive of decentralised technologies. They developed balanced legislation and introduced a special certification procedure for online gambling startups formed on the blockchain.

Why is it profitable to work with cryptocurrency:

  1. High security. Encryption of confidential data reliably protects it from theft and disclosure to third parties. This reduces the risk of fraud and money laundering, as well as the number of chargebacks.
  2. Complete autonomy. The work of online casinos does not depend on banks, financial/credit institutions, customs authorities, and other regulatory organisations. Most payments are made directly between operators and players, bypassing numerous intermediaries.
  3. Expansion of the geography. The technology simplifies the acceptance of international payments and facilitates communication with gamblers from different countries. Blockchain erases boundaries and makes entertainment projects famous all over the world.
  4. Cost reduction. The commission is much lower compared to the fees of banks or payment aggregators. In some cases, transfers are made without any fees at all, which is what attracts users.
  5. High speed. The absence of intermediaries reduces the time needed to carry out transactions. People need only 10 or 15 seconds to replenish their accounts and withdraw prizes.
  6. Anonymity. To deposit money, it is enough to have a verified BTC wallet. Any other information is not requested, which increases the level of trust in the crypto casino.

Entertainment Projects on the Blockchain Technology

Blockchain-based gaming projects: crypto casino

One of the options for using it is the creation of unique content.

Decentralised DApp applications are taken as the basis. They are responsible for the backend of the game and the presence of unique features (for example, progressive multipliers). The manufacturers also come up with a plot/original design of the product and add mutual cryptocurrency settlements.

The most famous solutions with blockchain are the crash options from the BGaming European provider. The brand’s assortment includes Limbo XY, Minesweeper XY, Space XY slots, and other positions.

Technology As a Factor of Economic Dominance

The key trend of recent years is the implementation of IT products. The world's largest countries are actively competing with each other, presenting new achievements in the field of science and digitalisation.

The USA and China are rightfully considered the leaders of the technological race. North America presented such famous IT giants as Apple, Meta, Oracle, and Microsoft. The Chinese industry can boast of Xiaomi, Huawei, Lenovo, and other famous enterprises.

Active digital conversion affects not only mechanical engineering or electronics production. Today, progressive solutions are used in many sectors of the economy, including gambling.

Artificial Intelligence

The term refers to the ability of machines and systems to imitate human behaviour. AI programs are characterised by many cognitive functions, such as self-learning or information analysis.

Today, the technology is compared to the “new power source”. It is pervasive and can be used in almost any area. Many experts call it a key element of the IT revolution that is unfolding before our eyes.

The PricewaterhouseCoopers (PwC) international agency claims that thanks to the introduction of AI, global GDP will grow by 14% by 2030. In 10 years, solutions based on artificial intelligence will be present in almost all new software products and services.

Let us consider how the tool is used in the gambling industry:

  1. Personalisation of the experience. AI systems can collect and process terabytes of data and identify behavioural patterns. Thanks to this, visitors to online casinos and bookmakers’ offices receive individual offers. They correspond to the preferences of users, the nature of the game, demographics, and other characteristics.
  2. Fight against fraud. End-to-end analysis based on artificial intelligence reveals hidden associations and relationships, as well as atypical Internet traffic, hacking attempts, and theft of confidential information. The system instantly blocks any suspicious activity on websites and protects them from bots or bonus hunters.
  3. Automation of routine tasks. To make it possible, iGaming platforms are supplemented with chatbots that use AI. Such programs support friendly communication with players, answer popular questions, and help with registration/deposition of funds.
  4. Verification of clients. Computer vision and machine learning, which are part of the technology, simplify the authentication of visitors to casinos and virtual betting shops. AI programs can confirm identity based on biometrics, detect falsification of documents, and confirm what devices were used to log in.
  5. Fight against ludomania. Atypical behaviour on the resource (for example, too long sessions or playing at high limits) often indicates the development of gambling addiction. Services that use artificial intelligence warn about this and offer effective tools to prevent the disease. It is also possible to add personal time reminders, make a selection of social entertainment, and activate temporary account blocking.

Virtual and Augmented Reality

VR games: virtual reality solutions

These are immersive technologies that connect the real world with the fictional one.

In the case of AR, certain features and layers are applied to real-life prototypes and images. When it comes to VR, a person is completely immersed in a digital space where their tactile, auditory, and visual sensations change.

Online entertainment is the most popular use of the technology. Thanks to the innovative Pokemon GO solution released in 2016, the whole world learned about the possibilities of augmented reality. Just a year later, the NetEnt Swedish provider introduced Gonzo's Quest VR, the first video slot of this type.

The development of both areas depends on how soon mass production of budget equipment begins. These are glasses, helmets, consoles, etc. Today, inexpensive items can be found in the assortment of HTC, Valve, Oculus, Meta, and other companies.

The Increased Role of Local Regulation

In contrast to active globalisation, many governments are seeking greater control over the businesses within countries. Thanks to this, a trend for localising production and creating reliable supply chains/appropriate logistics has emerged. The legislative framework is also becoming different, putting the interests of the state and its residents first.

Gambling, as a promising sector of the economy, does not remain aloof from large-scale changes. Today, more jurisdictions are working to improve the laws that regulate this niche.

The purposes of reforms:

  • attract business and capital to the region;
  • enhance the industry’s investment attractiveness;
  • increase budget revenues in the form of taxes, deductions, and licence fees;
  • create a safe game environment.

The modernisation of legislation also helps fight against the grey market, money laundering, terrorism financing, and other offences.

Trends in Regulations

Among them, we can name:

  1. The increased role of local jurisdictions. Most European countries are launching proprietary governance mechanisms. They offer operators various preferences and are harder on foreign sites, which can be instantly blocked (after that, their owners are subject to huge fines).
  2. Changes in offshore zones. Popular jurisdictions are also improving their legal frameworks to meet current industry challenges. A striking example is Curacao. The local Commission implements the rules for issuing permits and their cost, as well as introduces a special procedure for the certification of blockchain-based iGaming projects.
  3. New restrictions. First of all, they relate to casino marketing. This includes sponsorship, promotion of entertainment startups on social networks, and advertising on TV/radio at night. Penalties for non-compliance with laws are also increasing.

Changes in the regulatory framework are motivating gambling brands to reconsider their strategies for attracting and retaining customers. Today, more companies choose to focus on unique value propositions and strengthening partnership agreements.

Regulation in Key Regions

Gambling legislation: nuances of the regulation

After more than 20 years of successful liberalisation, the European market is undergoing a major transformation. The United Kingdom is at the forefront of change.

In 2023, the UKGC organisation published a White Paper. This is a new approach to controlling the casino niche and protecting players.

The Commission obliges all operators to check whether their clients can be included in 2 risk groups:

  • reconciliation of biographical data with a moderate spending level of up to £125 per month;
  • comprehensive analysis for increased losses (up to £2,000 in 90 days).

The changes are designed to prevent the development of ludomania in the country and make the gambling business more responsible and transparent.

Innovations in Great Britain often have a ripple effect. Therefore, other EU governments may follow the UK's lead and launch additional checks in their jurisdictions.

While Europe is on the legislation-tightening path, the Latin American market is experiencing a real boom.

Positive changes are associated with the validation of casinos and bookmakers’ offices in 2 key markets: Brazil and Mexico. They are among the top 10 countries with the largest online gambling traffic. Most often, local players register on foreign platforms.

Changes to the regulatory framework will help attract customers to official sites and increase the income of operators.

The Main Things about the Impact of the Latest Trends on Gambling

The casino niche is an integral part of the global economy.

Key aspects that entrepreneurs need to take into account:

  • The entertainment and sportsbook sector is growing rapidly. Almost half of its revenues come from the European market, where the UK and France are considered leaders.
  • The popularisation of alternative settlement methods has a huge influence on the industry. Many companies now accept cryptocurrency transactions. The main characteristics that attract business owners are the high speed and security of money transfers, as well as autonomous operation, and minimal commission.
  • It is difficult to imagine the growth of casino brands without the introduction of advanced technologies. Artificial intelligence is responsible for personalised user experience, protection against fraud, and automation of routine tasks. VR and AR give gamblers unforgettable impressions.
  • The development of local regulation takes place every year. Europe is on the path to major changes in customer protection, and Latin America plans to open its markets soon.

You can launch a profitable and legal casino project with the support of the CASEXE studio. We offer turnkey platforms with top content, licensed White Label resources, Bitcoin portals, and other modern solutions.

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Author: Matt Grant
iGaming business expert
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