Nowadays everyone is striving to optimize resources due to continuous lack of time. The latter is impossible without summing up the intermediate results. Read the current paper to learn about the gambling business development trends in 2019 and the experts’ forecasts, which were confirmed and which failed.
It’s required to objectively evaluate the market state to track the most important trends in order to ensure business development. Such a way allows to properly build business plan for future. The analytics quality often depends on whether it will be a victory plan or just the daily matters list. The termination of 2018 was full of expert’s estimates and forecasts, but practice turned out to be the criterion of truthfulness, as usual. We have collected the most significant trends of the current year for the gambling industry and compared them with forecasts – read the current paper to learn the results.
Online gambling’s future
The virtual industry development, outrunning ground-based gambling institutions, is a forecast, which has been confirmed. Online gambling markets development speed demonstrates the current state, if talking about a commensurate profit.
It’s a commonly known fat that remote casinos popularity is caused by the fact they are fast and more convenient. There are certain disadvantages as well, but a gambling institution is not just a house, providing certain excitement and you may start spinning the slot reels without interruption, it has its own culture, rules and atmosphere. Therefore, there will always be lots of fans of such institutions, being ready to overcome the state borders for the sake of traditional gambling institution. Online gambling operators are aware of this fact, that’s why they try to recreate the atmosphere and imitate a land-based casino. The experiments with live casinos confirm this. Technology is not deemed the current year achievement, but it is important that it spreads and gradually finds its consumer.
But it would seem, the innovation is the prerogative of virtual casinos, at least because they have more opportunities for this. But, in fact, the land-based gambling institutions leaders are trying to act as well. Therefore, it is enough to mention the wider use of robots in casinos or face recognition technology.
A brief summary: online is the leader, but the land-based casinos operators actively act as well.
One of the most striking trends in the gambling industry development in 2019 is the widespread regulation and business operation rules tightening. It’s worth mentioning the current trend should be described in the whole series of materials. But the most difficult state is observed in the gambling business’ marketing component, namely gambling advertising. European markets actively restrict or prohibit the gambling industry’s products promotion Such countries list consists of Norway, Lithuania, Italy, Spain, Georgia, Sweden, etc. This is not a complete countries list, in which gambling advertising is either already prohibited or is at great risk of being there.
The current decision, made by several different countries, has two various sides, therefore, it’s impossible to evaluate it clearly. On the one hand, how may a licensee be prohibited from promoting its own product, if gambling is legal? Such an approach directly contradicts to the regulating markets practice. However, on the other hand, the authorities are guided by noble motives, since the gambling advertising prohibition is an attempt to prevent addicted people and minors from participating in gambling.
There is one more extremely important point: no country has yet been able to completely eradicate the gambling business’ shadow segment. The current statement is true both for underground gambling institutions and illegal online casinos, although it still applies to virtual gambling to a greater extent. However, in fact, the government contributes the customers’ cooperation with the shadow operators by prohibiting or even tightening the licensed market participants operation rules. But the shadow operators do not pay taxes to the budget.
So, we may see one more trend – tax rates increase on the gambling business. The states’ goals are always good, so here we are talking about the funds redistribution for salaries and social or educational projects financing, etc. Each individual case, of course, should be considered in a comprehensive manner, since both raising taxes and introducing new ones don’t always have a destructive character. Where could this even happen in 2019 or at least discussed? Philippines, Italy, Latvia, Greece, Czech Republic, Kenya, Ireland, etc.
Why this may be a destructive factor? An excellent and, most importantly, fresh example in this regard is Latvia. They decided to introduce a tax on winnings, the result was immediate and was expressed by the foreign customers outflow, used to betting large. Finally, most likely, the treasury will not even get the tax revenue amount, previously available when the innovations were absent.
In 2019, following the responsible gambling principles was actively widespread and moved from the category of desirable to the category of a full-fledged market request. In developed European countries, operators optimize their operation according to this requirement, even if the latter is not imperative. In addition to humanistic aspirations, of course, some of them pursue other goals, for example, to increase their own brand prestige in this way. But in fact, this is not important, since the trend is favorable. What is this expressed in? First of all, charitable donations to organizations involved in the problem gambling and ludomania research. By the way, the United Kingdom is a classic example in this regard. Based on the mentality specifics, the funds, provided by the operators, are assessed as «little», but this notorious «little» is hundreds of times more than in some jurisdictions.
The second manifestation is the user protection mechanisms improvement. This year was distinguished by the consolidation of what has already been completed – self-restraint program and new ideas emergence – setting limits on gambling expenditure.
The forecasts, which came true, are the predominance of the online industry growth rate over the same indicator of ground-based institutions, the desire for restrictions to the detriment of the development of both market and even the state profit. The most important thing is a reversal towards the consumer, either forced or voluntary.