The online gambling industry is a dynamic and rapidly evolving sector. As we move through 2023, several key online gambling trends are dominating the landscape, driven by advancements in technology, changes in regulation, and shifts in player preferences.
Mobile Casino Games Revolution
The proliferation of smartphones and advancements in mobile technology have significantly influenced the online gambling industry. Mobile casino games are becoming more immersive and engaging, thanks to improvements in graphics, sound, and the integration of mobile payment options. This trend is set to redefine the gambling experience, making it more immersive and engaging gaming experiences
Virtual Reality and IoT
Two technologies poised to revolutionise the online gambling industry are Virtual Reality (VR) and the Internet of Things (IoT). VR offers players a more immersive and realistic gaming experience, while IoT allows for a more personalised and interactive gambling experience.
Cryptocurrency is another trend that is making a meaningful impact on the industry. With the ever-rising barriers of entry for new operators, those embracing crypto are experiencing significant faster growth than those who have remained fiat only.
Complying with the Travel Rule for Crypto
With the increasing use of cryptocurrencies in online gambling, complying with the Travel Rule for crypto will be critical. The Travel Rule requires Virtual Asset Service Providers (VASPs) to share customer information during transactions. This helps to prevent money laundering and other illicit activities, ensuring a safer and more secure gambling environment.
Countries are implementing more prescriptive advertising and responsible gambling measures, designed to protect users.
Until recently, responsible gambling licence conditions would require operators implement measures to promote responsible gambling and help players manage their gambling behaviour. This includes the provision of self-exclusion tools, deposit limits, and reality checks.
These measures assist players, especially the minority with an RG issue, to manage their participation.
Several industry milestones are being proposed that will be monitored closely by regulators and likely develop into global industry standards. One of these is the introduction of affordability checks, such as those proposed in the UK Gambling Review White Paper. These checks are designed to ensure that players can afford to gamble without risking financial hardship, a very well intentioned measure.
However, for most recreational gamblers, divulging detailed financial information to make a modest bet for entertainment is not appealing. The prescriptive nature of new measures is a turning point for the industry. Regulators will need to consider carefully how such measures could make legal businesses unattractive to customers and drive players to the black market.
Unfortunately, the industry has lacked a coherent, collective message to create collaborative with regulators and legislatures. This fragmented messaging from the industry is leading to measures being placed on the industry, rather than the industry working with government bodies to improve standards in a measured, practical way. Whereas those opposed to online gambling provide a clear, near uniformed message.
Licensed Game Resellers
There has been a significant uplift in game developers and distributors are seeking Isle of Man B2B Licences to show commitment to preventing gambling crimes and meeting international obligations.
While not always legally required, a license is increasingly vital to demonstrate compliance with AML and CFT standards. This helps avoid damaging reputations through associations with disreputable companies.
An Isle of Man B2B License, a respected credential, signifies high corporate governance standards. This can influence operators’ choice of suppliers and investors’ selection of companies.
Licensing can also improve banking relationships, increase partnership opportunities, and stimulate potential mergers and acquisitions.
Future of Online Gambling
The online gambling industry is evolving, driven by technology, regulatory changes, and player preferences. Mobile casino games are becoming more immersive, and technologies like Virtual Reality (VR) and the Internet of Things (IoT) are set to revolutionise the industry. Cryptocurrency adoption is accelerating, particularly among operators who are experiencing faster growth.
Compliance with the Travel Rule for crypto transactions is becoming critical. Countries are implementing stricter advertising and responsible gambling measures, including affordability checks, for a safer gambling environment. However, balancing these measures is crucial to prevent driving players to the black market.
A subset of service providers will emerge to enable responsible gambling set against industry adopted standards.
The industry needs a unified message for effective collaboration with regulators and legislatures. More game developers and distributors are seeking Isle of Man B2B Licenses, demonstrating commitment to preventing gambling crimes and meeting international obligations. This trend is improving banking relationships, increasing partnership opportunities, and stimulating potential mergers and acquisitions.