The gambling industry is rapidly evolving, reaching unprecedented size with the emergence of new technologies and new regulated markets. How can operators choose the right market? Slotegrator offers a brief introduction to different types of gambling markets and highlights some essential points for casino operators in the iGaming community.
According to Statista, the global volume of online gambling and betting is expected to reach $184.28 billion by 2032. Such rapid growth opens up new opportunities for online casino operators, but at the same time, it increases the level of competition, especially when it comes to new regulations: as soon as a jurisdiction implements new gambling legislation and becomes a white market, it is the most attractive for gambling business — players are most active in the emerging market, and there are few competitors. That’s why it’s crucial to launch your gambling project as soon as possible without wasting your time and losing players’ attention.
Two main categories are used to classify gambling markets.
- Region: Markets can be grouped by geography and culture, and these will often be useful indicators of cultural attitudes towards gambling, as well as economic viability. Therefore, iGaming industry professionals often refer to European, Asian, African, Latin American, and North American markets. The focus can also zero in on categories like Balkan, Southeast Asian, Asia/Pacific, Sub-Saharan, or Central American.
- Regulations: Countries where gambling is legal and licenses are issued are typically known as regulated markets. Those that don’t have gambling regulations but don’t outright prohibit the practice are known as unregulated (or gray) markets. And, lastly, those where gambling is explicitly prohibited are known as black markets. To learn more about different kinds of gambling markets, read this article at Slotegrator Academy.
So given these two categories, how do you choose a gambling market?
The choice of online gambling market depends on a multitude of factors. Based on the Slotegrator’s team experience, there are a range of factors that operators must take into account even after they’ve chosen the region and regulatory status that best suits their business adjectives.
Petr Stehlik, lawyer at Slotegrator, notes: “Factors such as licensing costs, the cultural background of the population, the strictness of laws, language preferences, popular currencies, and payment methods, and local players’ game preferences — everything plays an important role here.”
Slotegrator recommends targeting regulated jurisdictions and carefully studying their requirements to safeguard your future and ensure stable income, a good reputation, and uninterrupted operation for your business.
The general recommendation from the Slotegrator team is to follow this step-by-step process:
- Determine which type of market best suits your project.
- Choose the most suitable region for your future gambling project.
- Study the legal requirements for online casinos and betting platforms in countries within the chosen category and region.
- Calculate the costs of opening a business in the chosen markets and outline the necessary budget, as well as the project’s potential profitability in these countries.
- Cooperate with an experienced platform and business advisory provider like Slotegrator to set yourself up for success.
William Sarto, PR & Marketing Specialist at CasinoRIX, Slotegrator’s media partner, notes some key findings on marketing issues:
- It’s essential to thoroughly analyze and understand the intricacies of both regulated and unregulated markets, and then choose a direction that suits your business. This will have a significant impact on your marketing strategy and budget, as you’ll need to invest in development. For instance, some countries prohibit online advertising (so investing in affiliate traffic is not an option here), while others limit the use of bonuses and promotions. As a result, the market size will also affect the level of competition you’ll face.
- Conducting an analysis of your main competitors’ activities is crucial. This will help you understand their marketing strategies and identify if there are any monopolists in the market, as well as the share of the market they occupy. This information will be invaluable in helping you determine the time and budget required to achieve high results.
- Launching a project simultaneously in multiple geographic regions can be a great way to diversify your risks. Instead of focusing on just one country, consider spreading your efforts across multiple markets to minimize your exposure to potential market fluctuations. The iGaming market is constantly growing, and so is the competition – it’s essential to be prepared for this reality.