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
II. In the Spotlight: Player Retention
Personalization: Results and Predictions
AI, ML, Chatbots, Automation Predictions
Cross-Vertical Reach Predictions
IV. Managed Services Predictions
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 21st – 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.
