Happy New Year, dear partners, colleagues, and friends! We’re sure it will be a prosperous one and, in the paragraphs to follow, we’ll share exactly why. The iGaming industry has been blooming in recent years and 2024 will be no different in terms of growth. What about trends though? Check out Delasport’s predictions for the next 12 months and see if they match your expectations.

Contents

I. Market Growth and Legislation Predictions

LATAM

United Arab Emirates

The Nordics

II. In the Spotlight: Player Retention

Personalization: Results and Predictions

AI, ML, Chatbots, Automation Predictions

III. Player Acquisition

The End of Cookies

Cross-Vertical Reach Predictions

Sports Portfolio Expansion

IV. Managed Services Predictions

V. Conclusion

I. MARKET GROWTH AND LEGISLATION PREDICTIONS

The surge of the iGaming sector is not stopping any time soon and the projected size of the industry for 2024 is over $102bn with an annual growth rate of 7.76%. 

Markets on the rise that just received or are about to receive key legislation changes include Brazil, Finland, and the United Arab Emirates (UAE). Read more in our 2023 recap & industry overview!

LATAM

LATAM, in general, is a region to watch in 2024. Brazil, Chile, and Peru are just examples of exciting jurisdictions within this region that are getting a significant regulatory boost. Needless to say, Brazil is the giant all eyes are on. Just this last month – on December 21^st – their Chamber of Deputies voted to approve Bill 3,626/2023 regarding gambling, including iGaming, thus giving the final green light for the market to be regulated this year. The GGR (gross gaming revenue) will be 12%. B2C licensees will need to pay ~5.6m EUR for the license. In order to be eligible for a license, operators are required to have a Brazilian partner who possesses at least 20% of the company's capital within the country. Unauthorized operators are prohibited from advertising in Brazil. Furthermore, B2B partners are not permitted to supply technology to unlicensed B2C companies, and the offering of bonuses is also forbidden. 

United Arab Emirates

UAE is another intriguing up-and-coming market in terms of iGaming. As we mentioned in our 2023 recap, the Emirates introduced a new regulatory body to oversee commercial gaming: the General Commercial Gaming Regulatory Authority (GCGRA). As a now-regulated market, it is projected to reach US$1.6 billion by 2026, making it one of the territories with the highest growth potential. 

The Nordics

The Nordic region, as you’ve probably noticed, is a region of interest to us at Delasport. And not only us – it’s a fast-developing area of the world with a well–educated population that loves quality entertainment. A Nordic country that deserves attention when we talk about 2024 predictions is Finland which seems to be growing in terms of market size, yet struggles in terms of legislation. 

Antti Koivula, legal advisor at Legal Gaming Attorneys at Law, says the following before EGR: “The Finnish online gambling market has grown year after year, having doubled in the last decade, and there’s no end in sight for this trend.  The general trend of digitalisation drives players from retail to online, and heavily decreased slot machine gambling further accelerates the trend. The exclusive rights operator Veikkaus struggles with competitiveness in online casino games and online sports betting due to the handicaps created by the current legislation, causing the growth to go to offshore operators. While a number of bigger foreign operators will momentarily slow down with their Finnish operations in anticipation of the licensing system, that space will be filled with other brands with more aggressive strategies.” 

II. IN THE SPOTLIGHT: PLAYER RETENTION

Player retention has been becoming more and more important in recent years, but in 2024 it will be an absolute priority for successful iGaming ventures. Acquisition is key, but being able to retain the players you’ve already converted should be an even higher priority. Spending more resources on getting to know your returning players and understanding what makes them stick around will be your best move this year. Almost everything interesting and innovative that the industry will do this year will be related to player retention as an end goal. 

Personalization: Results and Predictions

We’ve been spreading the word about how integral personalization is in iGaming and in current times, but in 2024 it will be crucial for everyone to focus on this aspect. Retention is the strongest tool when it comes to player retention so any serious operator should have already implemented at least a couple of features allowing players to tailor their experience. 

In the case of Delasport’s partners, they have been able to take advantage of our cutting-edge ‘My Era’ suite, including the ‘My Sportsbook’, ‘My Event Builder’, and ‘If Bet’ features. All of them, together with the incredible Live Personal Trader feature, place our sportsbook among the best on a global scale. 

Other efforts operators should make have to do with localization – not only in terms of language but visual style (colors, patterns, sounds) and themes.  

AI, ML, Chatbots, Automation Predictions

Every serious iGaming operator should have already taken advantage of artificial intelligence (AI), machine learning (ML), or algorithms of some kind. Managing a large operation is impossible without the help of automation and 2024 will just emphasize this point as the need for fast and efficient scale up and cost reduction are needed. Letting algorithms analyze player behavior will be crucial in the 12 months that have just begun. This way the most suitable games and bets can be offered to players, and the optimal marketing campaigns and messages can be created. 

An area where AI & ML are game-changing is fraud detection and prevention. Algorithms are extremely useful for identifying patterns and can isolate and instantly report suspicious behavior. 

Chatbots are also a very useful tool for player assistance. Yes, they may not be able to handle cases that are too unique or specific, but they are a great help in handling frequently encountered issues and questions. This allows for a cost-effective 24/7 form of customer support. 

ChatGPT assists iGaming software companies as developers leverage it to create more engaging and efficient customer support systems, automate tasks, and improve overall user experience. 

For developers in software companies, ChatGPT serves as a powerful tool for augmenting their projects with sophisticated natural language processing. By incorporating ChatGPT into their applications, developers can streamline the creation of dynamic chatbots and virtual assistants, enriching user interactions with a more natural and context-aware conversational experience 

Developers can also expedite the development process, saving time and resources while still delivering high-quality, language-driven functionalities. Its versatility allows it to be customized for specific industry needs, making it an ideal solution for diverse software applications.

III. PLAYER ACQUISITION

Acquiring players in 2024 will be a bit more difficult than before. While new players are being introduced due to Gen Z now coming of age, predictions are clear: the industry needs to get more creative than ever. The internet and smartphone penetration has almost reached its limit, so the organic attraction will slow down and make way for innovative approaches to shine. As players are getting more educated on their options to bet, CPA is getting much higher. However, there is another key change on the way: 

The End of Cookies

Last year Google announced that “Chrome plans to disable third-party cookies for 1% of users from January 4th, 2024 to facilitate testing, and then ramp up to 100% of users from Q3 2024.” Keeping in mind Chrome holds almost 63% of the whole web browser market and Safary has the majority of the rest (20%), this change essentially puts an end to the gathering of user information as we know it. Yes, this change isn’t aimed specifically at iGaming, nor is it limited to our industry, but it inevitably affects it. Affiliates will take the biggest hit, but all operators will feel it too. This year everyone will have to get really creative in order to target and attract new users. First things first, suppliers, operators, and affiliates should get acquainted with Google’s Privacy Sandbox – a multi-directional program aimed at phasing out third-party cookies by using the latest privacy techniques, like differential privacy, k-anonymity, and on-device processing. Getting to know what this includes will help you comply and plan for new ways for player acquisition. 

Cross-Vertical Reach Predictions

Online Casino operators are missing out on a HUGE profit if they’re only keeping their business in one vertical. They can easily benefit from implementing sports betting to their platform, the most effortless way being through solutions like Delasport’s Plug & Play Sportsbook iFrame. By introducing this type of betting, they aren’t losing any players, but just the opposite: they’re gaining a brand-new revenue stream. In times when the market is oversaturated with operators, websites, and content, losing players to a competitor due to not providing the option to bet on sports along with casinos, is at the very least negligent. 5.53% – 8.42% of casino players are also betting on sports, at least recreationally. ​This means that you will not only be “the competitor” players run to, but you will benefit further from your own players. 

A creative way to promote this type of audience merging is through widgets. For example, Delasport partners can include a mini-games widget in their sportsbook that would send them directly to their casino game of choice. 

It’s important not to miss mentioning the cross-vertical Engagement tools we provide, too. The instruments we already mentioned above – Spin the Wheel, Tournaments, Missions, Level Progression, and more – make players curious about the vertical they aren’t betting on. 

In short, in 2024, being as comprehensive as possible is about to be key. Providing both casino and sports betting isn’t a nice to have. It’s a must. 

Sports Portfolio Expansion 

Being diverse is essential nowadays and the trend for 2024 indicates that sportsbooks should expand their portfolio to include smaller, more niche disciplines. Being inclusive of as many sports as possible guarantees a stream of new players who are looking to bet on some of them in particular. To pinpoint profitable niche sports, it is advisable to prioritize those with a devoted fan base, as smaller sports with passionate followers often present favorable opportunities for strategic betting. Additionally, exploring emerging or overlooked sports markets, which are less scrutinized by bookmakers, can offer increased value for bettors. Delving into trends within mainstream sports like football and basketball, despite their widespread popularity, can uncover novel betting prospects. It's also crucial to consider regional or cultural variations that may make certain sports more lucrative in specific areas. Employing data-driven analysis is another key aspect, as it enables the identification of hidden patterns and trends that may elude casual observers, enhancing the overall prospect of profitable niche sports betting. 

Delasport’s sportsbook, for example, includes disciplines like Kabaddi and Lacross, not to mention more unusual areas to bet on such as Politics and specific events like BBC Sports Personality of the Year and the Golden Raspberry Awards. 

IV. МANAGED SERVICES PREDICTIONS

The Managed Services segment is yet another one that will maintain its growth throughout 2024. As the sector expands, the user base and the scale of operations do too. This means that it’s not often that an operator can afford to manage a large venture in-house.

Something noticeable in the Managed Services sector is the quality-over-quantity trend. As an iGaming Managed Services provider at Delasport, we notice this clearly and are proud that our partners are looking for evidence of player satisfaction instead of simply looking at a number of support tickets closed. Here, the end goal again is player retention, and it is achieved through the Customer-Centricity paradigm. Putting the player first and treating every single one with the attention they deserve is key. Especially if they’ve been escalated by a chatbot which means their inquiry probably isn’t that template. 

Something else that will be noticed this year, specifically by Delasport’s partners, is our brand-new Deposit Assistance service: it helps players deposit with ease, increasing both retention and satisfaction. 

V. CONCLUSION

The outlook for the iGaming industry in 2024 is highly promising, marked by significant market growth and legislative developments. Player retention emerges as a focal point for successful iGaming ventures in 2024. The emphasis on personalization, utilizing cutting-edge technologies such as AI, ML, chatbots, and automation, underscores the industry's commitment to enhancing the overall gaming experience.

If you have to take just one thing away from our predictions article, let it be this: treasure your players and make sure you put a real effort into retention during 2024.

The post iGaming Predictions for 2024: The Year of Player Retention 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.

When people were confined to their homes and could not visit their favorite local casinos or attend their favorite sports, they tried to replicate that experience and online sports betting became a popular way for entertainment.

From physical to online

A large number of people who would always use retail have been pushed to try online alternatives. They would probably not go back to retail lottery shops, casinos, and gambling venues but rather continue to use Sportsbooks and online casinos as solutions for their needs. The expansion and development of retail to online is one of the major changes in the gambling industry that the pandemic has only accelerated. Businesses that operated exclusively through retail shops have tried to leverage their online presence. During the multiple lockdowns and those who were already online have extended their offerings.

Read more about the Top 2021 trends in online casinos

In the past year…

More iGaming software providers and operators shifted their attention from bringing new brands. And the idea is to deliver creative content that would engage more iGaming players and increase user retention. There are other reasons for doing that besides the rising demand for content. Understanding the customers’ needs pushed the urgency of finding new smart ways to feed content and create user journeys, driving the need for automation to turn huge customer data into a valuable asset.

Technology development

With the expansion of regulated territories, technology became a key enabler for growing the iGaming industry across geographies. At the same time adjusting to a wider range of consumer needs and behaviors. The adoption of new technology and software solutions has been sped up by the increased demand for digitalization in all fields. And logically this has triggered changes in the way many businesses operated by now.

Many will probably focus on AI, as a technology that can be useful in many aspects. Like not only collecting data and suggesting user preferences, but also for strategic automation, customer security, monitoring, and analyses. Others will enrich their white label solutions features‘ set with new functionalities, becoming more flexible and versatile. This will allow them to stay ahead of the competition.

Conclusion

One thing is for sure, technology enhancement will continue to be a highlight in 2021. And if you are planning to step into the big game and start your online gaming business, first and foremost you need to know how to choose an iGaming software provider for you and your needs. Ensuring a successful win-win case for both you and your supplier is a formula for success.

The post iGaming Industry Summary for 2020 first appeared on Delasport.