5 trends in gambling business relevant for 2020

And this is not VR, Blockchain, Big Data, and other high-tech things, about which we wrote in the article Trend of the gambling business in 2019. Although, we’re going to talk about Big Data. So, what kind of trends are these:

  • Understanding the audience, mapping the way the client
  • Emphasis on low stakes entertainment
  • Investments in the US market
  • Working with troubled players (ludomans)
  • Taxation of players on income

Let’s look at each of these items in more detail.

Understanding the audience and working with the client card

Advertising to attract new users is becoming more expensive every day. It’s the competition that’s to blame. More and more companies come to the gambling market and try to snatch their piece of the pie. The cost of attracting each new player is increasing. Consequently, it is necessary to increase LTV (Lifetime Value) – the amount of revenue that the client brings for the entire time he is on the site (in the application).

LTV can be increased due to two factors:

  • to make the client spend more for each session;
  • to make the client return to the site as long as possible.

The first one is not easy to do. But to create conditions in which the player gets used to the bookmaker or casino and not in a hurry to look for other options, it is quite possible. To do this, you need to understand all the interests of the user. What is it clings to? How does he behave on the site? What interface do elements cause difficulty with navigation? To which calls for action he reacts best? These are just a few of the questions that need to be answered.

And then Big Data comes to the rescue. Any business these days needs to collect as much customer data as possible. And gambling is no exception. Except for the collection of data is not limited to the case. You need to analyze them, identify patterns, find bottlenecks.

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The better you understand your clients, the better chance you’ll have ideas about how to keep them.

Small odds

It’s nice and profitable to work with high rollers. Except there aren’t many. And there are millions of non-rich players. Even billions, potentially. The lower the bet, the easier it is to attract new audiences and keep them. Many bookmakers have long understood this and are successfully operating in the markets of Africa and Southeast Asia. In countries where the average citizen earns no more than a dollar a day.

However, for developed markets, this approach also works well. If a person knows that he can have fun all night long for a modest sum, then he is more likely to choose it is gambling, not another type of entertainment. Subsequently, wishing to try his luck, he can switch to a larger bet.

Investments in the US market

For a long time, the European market was considered the most attractive for online gambling. But recently, governments of various countries have been tightening regulations in this area. For example, this has already touched the UK market. In many countries of Asia and Australia, the work of bookmakers and online casinos is also becoming more complicated.

Also, in many European countries, there is a declining trend in the interest of gamblers. All this leads to a slowdown in the growth of the industry. As well as stagnation.

Against this background, the progress towards legalization and more flexible regulation of the U.S. online market looks like a real gift. With each passing year, more and more states legalize online betting. And to capture these markets is worth as early as possible before competitors do it.

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Another promising market in South America. There’s also progress towards legalizing online gambling.

Preventing ludomania

In our recent material on ludomania, we wrote that many online casinos have a “Responsible Gaming” section on their websites. It contains tips on how to avoid gambling addiction. The problem is that few people want to get acquainted with this information.

Why is this a problem for casinos? Some severe cases of ludomania get a big resonance in society. The media are eagerly clinging to this topic. Society calls for a boycott of gambling. The government is tightening industry regulation.

If every casino and bookmaker can identify ludomans at an early stage, they can take action. Right up until the games are blocked and these citizens are entered in special registers. Which will then spread out between all companies?

Yes, as a result, you will earn less on a few players. But you will earn on those thousands of customers, which you get as a result of the fact that the government will not tighten the requirements for online casinos.

How do you do that? Once again, Big Data and modern machine learning technologies come to the rescue. Ludomans must have similar patterns of behavior with which to calculate them. The challenge is to identify these patterns, test them and create a system to identify ludomans. It’s an industry-wide task.

Statistics say that the proportion of people with pathological dependence on gambling does not change over time. And 30 years ago and now it’s about 2-3% of the total population. It’s better to ban them from gambling and earn the remaining 97%. Than to lose them all.

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Collecting tax from gamblers

Nobody likes to pay taxes. And the taxes on winnings are often very high. Using offshore and various tricks of the company allow players not to pay taxes. Or minimize them. All this is good for keeping the users. But then again, it’s bad for the industry as a whole.

Recent actions of regulators on gambling in different countries clearly show that the government is interested in gambling revenues. In many countries, they account for a significant share of the budget. But if bookmakers and online casinos are tax evaders, it’s easier to ban them and block their activities than to give them concessions.

The general trend is to become as transparent to the state as possible. Even if your license and legal status allow you to avoid paying taxes in certain countries, it is still better to pay. Thus, representatives of the gambling business will form a positive image in the eyes of the authorities and the law. Technically, it is not difficult to collect tax on winnings. It is also realistic to explain this to the players.

The results of

These trends offer companies to invest more in research, reduce rates and give more money in taxes. What is this nonsense? Is the era of super-profits over?

Not at all. Superprofits are probably still ahead of us. But what will happen if we act in the long-term interests of all nations? Not in the interest of short-term profits.

Gambling has been going on for thousands of years. People will always want to try their luck. If we make this activity safe for society and profitable for the state, then, in the end, everyone will win.