The constant growth of online businesses attracts entrepreneurs around the world: lower operating costs, the ability to reach players in a variety of markets, and modern promotion opportunities make online casinos and sportsbooks a highly viable business model. Ayvar Gabidullin, Business Development Manager at Slotegrator, shares his expert take on why the online gambling industry will continue to appeal to new entrepreneurs in 2023.
Online ventures such as e-commerce, online education and consulting, online promotion, and online casinos and sportsbooks have become ideal business models for the modern entrepreneur. The last item in the list stands out for the size of the industry, the impressive rate of growth, and the number of opportunities available.
Online gambling is a comparatively young industry (jurisdictions began licensing and regulating gambling in the mid-1990s), but every year there are more and more opportunities for development. The growth of the industry is only accelerating as consumers spend more and more time online, attracted by the convenience of 24/7 access and the availability of options that are not available offline.
Impressive market dynamics According to a report from the European Gaming and Betting Association, European gambling revenue will reach $40.6 billion GGR in 2022, an 8% increase over 2021. In 2022, casinos became the most popular online gambling product in Europe in terms of revenue, reaching $15.8 billion and accounting for 39% of iGaming revenue in Europe. Asia is the most lucrative region for online gambling (the continent is home to about 4.3 billion people). In addition, Africa has significant opportunities for online gambling operators looking to expand, so this market should not be overlooked. The sustained growth of the market will continue to draw entrepreneurs interested in starting a business with high returns.
Transparent licensing procedure from multiple authorities To access the world’s most valuable markets, an online casino must have a license. Two of the most popular licensing jurisdictions are Malta and Curaçao, but these two islands are far from the only option; the Isle of Man, Alderney, Gibraltar, the territory of Kahnawake (in Canada), and others also issue licenses, giving potential operators plenty of options. The license acquisition process is smoothest and easiest with professional assistance.
New markets and new opportunities Europe is home to a number of well-established online gambling markets, but there are plenty of opportunities elsewhere; countries around the world are now moving to establish online gambling regulations and licensing procedures. Latin America is seeing a wave of newly regulated markets, while several countries in Africa have massive numbers of passionate sports bettors. The Asian market is also quite competitive, as detailed in the latest online guide from Slotegrator, a leading iGaming software developer and aggregator.
Innovative technical solutions. The quantity and quality of modern technological tools for the online casino industry today are simply amazing. Operators have everything they need at their fingertips in the same backend: the ability to manage multiple projects, a large and constantly expanding database of games, enticing bonuses, the ability to set up payment methods in both traditional currencies and cryptocurrencies, the ability to localize their site, etc. Last year, Slotegrator introduced a platform software solution that includes a number of modules giving operators total control over their projects.
Convenient automation of all processes Modern digital platforms give operators access to live data and real-time analytics in areas like revenues, player behavior, and a whole range of critical KPIs. In addition, software developers often have a network of partnerships which allows for easy integration of various partner solutions without the need for additional development of complex and customized software from scratch. This makes process automation fast and convenient.
24/7 availability, anywhere in the world The absence of physical boundaries allows operators to find and engage audiences all over the world, offer clients solutions at any suitable time, and keep technical support available 24 hours a day. Firstly, it allows an emphasis on customer focus, and secondly, it allows them to work conveniently no matter what their location is.
Clear working strategy Luckily, new operators don’t have to create an entire business plan from scratch; there’s already a clear path for them to follow. Everything starts with market research, getting a license, preparing the base, connecting the platform, launching your marketing and advertising strategies, and engaging incoming players. Each step of the process is important, so consultation with experts is essential.
Affiliate marketing This is the industry’s most popular tool for attracting new players. It is a form of performance marketing in which affiliates earn a commission from the traffic sent to the business, which in turn pays only for successful conversions. As a result, advertisers can evaluate their marketing budgets and compare affiliates’ performance and offer players better options and products. Cooperation with the right affiliate network provides a sensible, reliable method of building a stable base of loyal players, offering a reliable marketing strategy right out of the gate.
Mobility and independence Online casinos require far less effort and investment than their brick-and-mortar predecessors, as well as offering many things they can’t: 24/7 access regardless of location, accessibility through any device, and a seemingly infinite range of gaming options. During the pandemic, online casinos became a transformational solution for land-based casino owners, who opened online branches of their brands to cater to loyal players stranded at home.
All this leads to a key conclusion: online casinos are a profitable, dynamic, and growing business format, which in 2023 will definitely continue to grow in popularity. In 2022, the market grew by 7%; predictably, successful online casinos can bring in up to $10 billion a year.
To conclude his analysis, Gabidullin emphasized: “Today, anyone who wants to set up for long-term profits, can open an online casino. Interest in online gambling is growing thanks to loyal players in Europe and active players in the fast-growing markets of Asia, Africa, and Latin America. Our practice shows that 9 out of 10 clients are satisfied with their investments in opening an online casino, having received not only a profitable business but also enormous opportunities for scaling it up. I am confident that in 2023 there will be even more online casinos that will allow their owners not only to increase profits but mainly to create a business in one of the fastest growing and successful industries”.