In order to open an online casino and keep a profitable iGaming business running, operators need to follow the latest news and updates in the gambling industry, be able to analyze what is happening, and predict the situation on the market. iGaming aggregator Slotegrator has identified and analyzed four key aspects in this sense: competition, pandemic, innovation, and regulation.
The first one is an increase in terms of competitors. According to Statista, between 2019 and 2026, the gambling industry will show an average annual growth rate of 7.91%. According to experts, at the end of 2020, the market volume was $66.7 billion, and by 2023 this figure will reach $92.9 billion. These numbers show a profitable and rapidly developing segment, which draws the attention of entrepreneurs. Every year there are more people who want to start a business in the gambling industry, Slotegrator notes, and brings three questions to the table to understand who the real or potential competitors:
"Professionalism, years of experience in the industry, optimal quality at a favorable price — the standard answer to the first question. To answer the rest, you need to know about the latest competitors’ development. What product you launched, with whom you signed a partnership agreement, what new market you have mastered — you need to know this in order to build a unique strategy for your company. This is how you will be able to identify real competitive advantages and not only verbally differ from other online casinos," Slotegrator explains.
As for the Covid-19 pandemic, the company says the gambling industry has bypassed this. With people starting to spend more time at home, they began to surf the internet "more than industry players took advantage of," Slotegrator says, adding that the influx of new customers and constant support of the existing base allows gambling projects to develop and scale.
"In the future, the online segment will be the key growth driver for the gambling industry. This is one of the few positive effects of the Covid-19 pandemic. Therefore, it is important for real and potential online casino operators to keep abreast of the latest developments related to Covid-19," the company concludes.
Moreover, in terms of innovation, experts predict that digitized companies will be driving customer experiences and sustainable operating models by 2024 shifting 70% of all spending to technology.
"AR and VR technologies are rapidly changing the gambling industry," Slotegrator notes. The aggregator says that artificial intelligence is at the forefront of many technological developments, and augmented and virtual reality applications are becoming trends and positively affecting the player experience. "The main goal of VR and AR is to improve the user experience. AR has the same function as VR, but it is player-centric technology that provides information about jackpots, casino features, bonuses, and promotions."
The company says that creating an online casino using AR and VR technologies requires significant resources, especially financial ones. "Accordingly, software should have wide functionality and the ability to work smoothly even with high traffic. That is why it is important to choose a developer who can bring a digital approach to your project."
Finally, Slotegrator underlines the importance to read the news related to the regulation of online gambling in each jurisdiction where operators seek to register their business. "Having decided to open an online casino, an entrepreneur must first of all take care of purchasing a license for the gambling project. To register an online casino or sportsbook online, you need to choose a European country or an offshore zone with a reliable reputation."
Regulation of the gambling business differs from country to country. Permitted areas and states traditionally include: Curacao, Malta, Great Britain, Gibraltar, Belgium, Denmark, Estonia, Italy, Costa Rica, Kahnawake, Isle of Man, Antigua and Barbuda.
Slotragrator cites the example of Germany, where in March 2020, the Prime Ministers of the Federal States of Germany ratified the new Gambling Treaty, which entered into force in July 2021 and allowed issuing online casino licenses throughout the country, and not just in the federal state of Schleswig-Holstein.
"Stay updated on the latest changes and additions to the legislation of the country where you want to register a business, study all the nuances, the rules for acquiring a license, and only then act," Slotegrator concludes.