Why is personalization so important?

At first glance from bettors, the online gambling industry appears to be made up of interchangeable operators, all offering more or less the same thing. And, as the industry itself isn’t too old in the grand scheme of things, the push for differentiation hasn’t been as strong as it has been in online shopping channels, streaming services, and social platforms.

Generally speaking, operators have attempted to offset product similarity by concentrating on price differences, which has caused their profit margins to narrow. Also, despite the general enthusiasm for the online gambling industry, the cost of acquiring new customers from competing operators has increased due to market-wide, price-based advertising tactics that include "free money" promotions such as welcome bonuses.

A pricing war is not a long-term viable strategy in the oversaturated gaming industry; true distinction should come from other areas – and one of those areas is personalization.

The picture today

As technology has advanced over the past several years, standards of personalization have been rising quickly. It has evolved from a catchphrase to a genuine source of differentiation. Today, it's all about the player, as opposed to a while ago, when it was all about the product. However, The iGaming sector lags behind other e-commerce sectors. For instance, Netflix has seen a shift in its user base from those looking for specific films to those just watching the suggestions. There’s no reason why operators can’t offer the same, so it’s time for a change.

Recommendations and relevancy

A key component for the future of personalization is offering recommendations for games that are pertinent to a player's circumstances and specific needs. The increase in conversion rates and transaction value is driven by relevance, especially when that relevancy is executed intelligently.

Personalization can be used dynamically, based on preferred sports, game schedules, device types (such as mobile or desktop), geolocation, time of day, and even real-time behavior.

Putting the player in the middle

Due to the rising costs of attracting new players and keeping hold of existing ones as well as the limitations on advertising, many operators are struggling to draw in and keep hold of customers. Players should always come first, and operators that have products that offer personalized experiences are more likely to succeed in the long term.

In iGaming, personalization entails knowing which market group your players fall under, what their gaming preferences are, what they're trying to achieve, and why they should trust you as their operator. Understanding target markets and players' behavior through data and technology creates a better foundation for iGaming player acquisition and retention methods that are more intelligent and successful.

For operators offering both Sports and Casino betting, the potential benefits of future personalization are even more alluring. For example, once an operator knows enough about the bettor’s habits on a Sports betting platform, they can create special promotions to offer them Casino experiences based on what is already known about their preferences.

A new Era is coming

So, that’s where things stand now. But what about tomorrow? Just like any other technology, the future of personalization is going to need to continue evolving alongside customer needs and expectations. For global iGaming supplier, Delasport, this evolution is already in full swing.

Known as the "MY Era", Delasport is on the verge of something big. And, as the name suggests, it is the beginning of something long-term, where personalization is the focus, and players sit firmly in the middle of their experiences. The "MY" products, as the name implies, will give players a sense of ownership and belonging by providing only the content they specifically request. They effectively control what they see.

My Sportsbook and My Event Builder

The ‘"MY Era" starts with two products, each offering a different way for players to bring their betting in line with their interests. First up, we have My Sportsbook, which serves bettors with a questionnaire on their first time logging in. Through this, the players can indicate what their interests are in terms of sports, leagues, teams, and so on, creating a custom lobby for future logins. This means that they’ll be taken straight to the action without the need to scroll and search for their favorites. This level of convenience is especially important for mobile screens, as navigation is naturally more restricted due to the display size.

Then we have My Event Builder, which gives bettors something completely new: the chance to create their own unique custom events to bet on. They can choose two teams from completely different leagues, who aren’t even scheduled to play at the same time. For example, a bettor can create an event between a small local team and an international powerhouse, who would never play against each other in the real world. They can bet a score of 3:2 in favor of the small local team, and if that team scores 3 in their game against someone else, and the international team scores 2 in theirs, the player has won their custom bet. This essentially means that there is an unlimited combination of bets they can place, where their imagination is the only limit.

Looking forward to the future

My Sportsbook and My Event Builder are just the beginning. Delasport is working on creating a similarly powerful feature for our Casino offering, which will once again reinvent how operators engage players looking for deeper and more rewarding experiences.

As for what the future holds for personalization, it is likely that machine learning and AI will continue to lead the way. But, learning about the player is not just about gathering data over time. The "MY Era" is unique because it does the unthinkable: it actually asks the player what they want to see without making assumptions. Of course, data and analysis of betting patterns can support in many effective ways, but the future of personalization also needs to have a more human approach.

The post The future of personalization in iGaming first appeared on Delasport.

Influenced by the ongoing global pandemic, together with new player expectations, behaviors, and emerging technologies, here are the iGaming trends we expect to see in 2022.

2022 iGaming trends at a glance:

Market growth and regulation
Sports Betting as a must-have product
Gamification and video game elements
Video streaming
Consolidation M&A, leagues, and global media companies’ involvement
Esports trend gains traction
Mobile betting trends
Smart TV, augmented reality and VR

Market growth and regulation

According to H2 Gambling Capital, the online gambling global market size has already passed 70€bn a year and is expected to pass 90€bn in 2025. In 2021, 73% of the total market GGR was generated from regulated markets – an iGaming trend that is expected to continue as more and more are regulated. Governments are rightfully and actively seeking to find new revenue sources, and even more so due to the ongoing pandemic’s effect on economies. By forming regulatory bodies and legalized gambling activities, governments can collect revenues from gambling tax and licensing, increased employment, and decrease illegal betting all at the same time.

Sports betting as a must-have product

According to H2 Gambling Capital, the global sports GGR consist of 49% out of the total iGaming revenues. We expect to see a clear iGaming trend with the sports share growing even more than the other products. And not because of the football World Cup this year - but mainly because the U.S. is predominately a sports betting market.

The online gaming market in the US is valued at 2B USD and is forecasted to grow and reach 8.5B USD GGR by 2025, representing CAGR of over 15%. More than 25 states have already legalized mobile sports betting and 14 more are in process, while only six states have legalized iGaming (casino): Connecticut, Delaware, New Jersey, Michigan, Pennsylvania, and West Virginia.

On sponsorship deals, we also expect to see more involvement in iGaming from leagues. For example, we have already seen The Premier Lacrosse League announce an agreement with DraftKings, BetMGM with Ladies Professional Golf Association, and PointsBet with the Colorado Buffaloes college team. Sports betting will also further become a must-have product as current casino operations may lose players to those who have discovered betting on sports, never to return. In addition, the CPA (Cost Per Acquisition) fees for sports players are lower than for a casino, with the bonus of some players still being successfully cross-sold to casino (mainly live Casino).

Gamification and video game elements

While video games in the traditional sense and iGaming have many differences, many elements from video games have been making their way over to iGaming as a sturdy trend. All with a focus on better visuals, more interactions, more mission-based gameplay loops, and more themed / role-playing mechanics. Companies like Green Jade, Skywind Group, and Spribe are experimenting with arcade-like games. For instance, Skywind’s Fly Jet is a real money fly-and-shoot game where players fly through five different locations and fight bosses to chase massive cash prizes. Another example that has gained large traction is Spribe’s Aviator, a social multiplayer game that originated from the video game industry.

To truly stay ahead of the competition and trendy at the same time, developers will need to continue improving the visual fidelity of their games to match the screen resolutions of today’s more sophisticated smartphone devices to provide more immersive experiences.

Video streaming

In 2006, Google identified the future of video streaming and acquired YouTube for 1.65B USD. In 2007, Evolution Gaming started to stream roulette live dealers, introducing the concept of enjoying gambling experiences from the comfort of home, while retaining important social interaction.

The ability to play casino games remotely while interacting with a genuine live-person dealer has turned out to be considerably more exciting than anyone could have expected. Logically, it became a must-have iGaming trend because live dealers, after all, not only provide a more authentic and legitimate gaming experience – they create a deeper connection with the players and can even foster a better sense of trust between operators and players.

In live streaming, we will see more and more studios trying to get a share of the growing market, including companies such as Skywind Group and EGT. Other expectations include the continuation of the localization trend where studios produce local games like Andar Bahar, and the continued adoption of Show games that have been popularized by Evolution Gaming – as we can already see from Pragmatic Play with their very first Show game, ‘Mega Wheel’.

Consolidation of M&A, leagues, and global media companies’ involvement

iGaming companies are looking to increase their market standing, with some looking to acquire technology companies to own the software and control their own destiny - while others are looking to quickly expand to existing and emerging markets by acquiring companies that already have access to licenses and knowhow in local regulation requirements. We have already witnessed 888 acquiring William Hill’s European business, Fultter acquiring The Star Group, Draftking’s acquisition of SBTech and we will see more M&A activities in the U.S. online betting industry.

We also expect to see more involvement in iGaming from leagues and media companies following leagues like the NFL, as well as media companies such as Fox and Sports Illustrated looking to take a piece of the action.

Esports trend gains traction

There are now more options to gamble on Esports than ever before and this will continue to be a developing iGaming trend in 2022. Once considered as a niche market, eSports are now attracting a rising following – to the point where some TV channels stream Esports-focused channels as part of their bundles, creating an even wider appeal. This is especially prevalent for generation Z, who already play these games for recreation. According to NewZoo prediction, the Esports market share will grow to $1.8 billion by 2022.

The increased sophistication of traditional video games has also added to this trendy rise. Better graphics, more complex mechanics, and deeper gameplay loops can make for more competitive and engaging experiences. Gamers from all around the world can now wager on games like FIFA, League of Legends, Dota 2, Valorant, Overwatch, Fortnite, and others across console, PC, and even mobile platforms.

Mobile betting trends

The trend of mobile betting will continue. In all markets over 50% place bets on mobile devices, and in some markets, it has already reached 90% of overall transactions. With 5G speeds becoming the norm, gaming on smartphones has never been easier or more seamless. Some operators are even offering welcome packages exclusively to mobile. In the Apps category, we may see Google and Apple opening more markets for Mobile Betting Apps.

Smart TV, augmented reality, and VR

Technologies such as AR, VR, and Smart TV applications are still in their early adoption phase in the mass market and are even more in their infancy when it comes to iGaming and online casinos. However, we do expect to see them gain traction and become a real gambling trend in the coming years as the technology becomes more affordable and accessible to the average consumer.

Conclusion

The iGaming industry has come a long way and has evolved from niche beginnings to become one of the world's largest and most profitable industries. The rivalry in the online casino industry is also fiercer than it has ever been, with many online casinos going to great lengths to differentiate themselves.

Ultimately, every operator's purpose is to attract gamers. While bonuses, promotions, awards, and customer service are all great motivators, staying on top of the latest technological and social trends will be essential for their survival through 2022 and beyond. So, make sure you keep a close eye on the latest iGaming trends in order to stay on top of your game!

The post Expected iGaming trends in 2022 first appeared on Delasport.