TREND TALKS
The iGaming industry never stands still, so what will give operators the competitive edge in 2024? Desislava Stranska, senior business development manager gaming vertical at PXP Financial, spotlights the upcoming trends you need to know about to thrive in the year ahead.
Ahead of the game T
he global iGaming market is expected to reach $115.13 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%, with the number of global iGaming players set to increase to 593 million by 2024, up from the 454 million players in 2017. Driving this growth is the emergence of new technologies that elevate the player experience and reduce payment friction.
THE GROWING ROLE OF ARTIFICIAL INTELLIGENCE AND BLOCKCHAIN
With AI hitting the headlines almost daily, it seems an appropriate place to start when talking about tech trends.
AI will impact the iGaming experience in the year ahead by analysing data to predict the types of new games players want to see, for the benefit of providing casino players with customised in-game recommendations, rewards and bonuses to improve the overall user experience. For and operators, it will prove a game- changer in spotting potential security threats and in running their operations more responsibly by identifying disturbing behaviours, and providing help to players earlier than ever.
Leveraging blockchain infrastructure is another trend I expect to see evolving and that will be seen in the future development of payment methods and collection, fraud prevention tools, in-game experiences and other relevant parts of the ecosystem.
But it’s the combination of AI and blockchain technology that will be a game-changer for the iGaming and online gambling sectors in 2024. By bringing AI and blockchain technology together, operators can create personalised experiences, efficiently improve customer support, enhance player engagement and increase conversions, all whilst bringing much-needed transparency, security, and decentralisation to the industry.
What the gaming industry cannot ignore is the increased speed on cross-border transactions at what is usually a fraction of the cost through standard payment rails.
CRYPTO
If AI is the number one headline-grabber, crypto is surely a close second.
When it comes to crypto in iGaming, there are two key aspects to consider: the emergence and rise of crypto casinos, and the increased usage of cryptocurrencies as a payment method,
8 MARCH 2024 GIO
specifically for deposits, i.e., making the most in terms of on-ramp capabilities.
Crypto casinos are still predicted to become a growing trend, however the huge potential some had foreseen is yet unrealised. These platforms operate within the decentralised network and infrastructure of cryptocurrencies. While some aim to eliminate the need for Know Your Customer (KYC) verification, crypto processing providers adhere to strict Due Diligence rules. They employ robust fraud prevention measures and establish deposit and transactional limits to ensure security. Cryptocurrencies like Bitcoin are no longer seen just as assets but also recognised as payment tool for online deposits. In Europe, member states are taking various approaches to regulate iGaming. Estonia, for instance, recently amended its AML Act, reflecting growing recognition of crypto’s role.
In general, the use of crypto for iGaming purposes shows a steady rise while still lacking comprehensive framework, remaining banned in certain regions, or even remaining neglected and not falling in the scope of all local regulators. Crypto coming into its own in iGaming seems to stay in the obscure future short-term.
However, the intersection of iGaming and DeFi does show promise, with positive regulatory developments in Japan, the UK, and beyond.
TAKING PAYTECH TO THE NEXT LEVEL
In a thriving yet ever-changing industry such as iGaming, secure and reliable payments is key to success. I very much expect to see a rising pursuit of frictionless and instant payments with the payment suite boosted by comprehensive network of reputable local payment partners and cross-border processors.
To meet consumer expectations, the online casino industry will continue to add alternative payment methods to their platforms throughout 2024 as demand grows for quicker casino withdrawals and financial security. These will include mobile payments, withdrawals to local bank accounts and cryptocurrency wallets, as well as all-you-can- play subscription options that are quickly becoming the future of gaming. The global subscription-based gaming market was valued at $17.16 billion in 2021 and is projected to reach $55.94 billion by 2031.
Seamless payment experience for users, cardless pay-ins, speed of payment collection will continue to be pivotal when entering new gaming markets.
EXPANSION OF IGAMING MARKETS
Away from the tech side of the business, it’s also important to look at the new markets iGaming businesses will be able to tap into next year. The trend towards stricter regulations will continue and the rise of potential new licensing ‘heavens’ is a space where a new regional player may come into scene being Comoros, Anjouan or elsewhere.
I also expect North Africa and SE Asia to open for gaming and keep introducing legislation measures. I see Nigeria and Kenya paving the way and will be watching the space for what’s cooking next in the region.
Brazil, Peru and Chile are all forecasted to launch licensing regimes for online gambling as soon as 2024, following in the footsteps of Colombia, Mexico, Panama and certain provinces of Argentina.
In South-eastern Europe, Montenegro (while still not part of the European Union) is becoming an increasingly attractive place for iGaming. The country’s government has made efforts towards modernising its gaming laws and creating a regulated field.
On the other side of the world, UAE is making huge steps towards creating a friendly yet regulated environment aiming to become a Singapore-rivalling hub for gambling. Meanwhile, the race to the Emirates has been validated with the recent MGM and Bellagio step into the new billion-dollar leisure island. On the other hand, Philippine Amusement and Gaming Corporation’s (PAGCOR) potential privatisation during current administration is another hot industry topic worth watching as it will impact another thriving Gaming jurisdiction – the Philippines.
Whether operators want to grow their iGaming business at home or overseas, enabling frictionless one-click transactions, offering blockchain-enabled payment methods, utilising blockchain for fraud prevention, and pursuing regulatory approval across new emerging licensing jurisdictions, will give them the competitive advantage in 2024. Realising the full potential of these technologies means partnering with payments experts who can ensure their vast payment experience matches the gaming experience.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84
