Irina Pisanko, CPO of Alpha Affiliates, is one of the expert speakers appearing at Affiverse AMPLIFY next month. Here she answers questions about the current state of her iGaming industry around the world. Whether the iGaming industry is impacting economies around the world and how regulations and trends are impacting it.
Q. How has the iGaming industry evolved globally over the past decade and what are the key trends driving its growth?
A. Technology developments over the past decade have led to significant growth in the iGaming industry. In particular, we see users moving from desktop to mobile devices. 58% of online casino players are mobile device users. It is also important to note that cryptocurrencies are changing the world and occupying an important place in our business. Almost all online casinos now allow deposits in various cryptocurrencies, and there are even separate casinos that specialize in cryptocurrencies, where the currency itself is used in-game.
Moreover, it goes without saying that in the early 2000s, carriers primarily obtained licenses that allowed them to operate in multiple countries simultaneously. However, many countries, especially Tier 1s, have now introduced their own local regulations, reducing the number of online casinos operating cross-border with a single license, and thus reducing the overall regulation of the iGaming landscape worldwide. has been strengthened.
Q. What is the main economic contribution of the iGaming industry and how does it impact the local and national economy?
More countries are now introducing local regulations, which means new economic implications. First, there are tax implications. All operators working in the market with a local license must pay taxes. Secondly, upon obtaining a license, the operator must establish a company in the country of operation, open a bank account and deposit a correspondingly large amount of funds. Of course, these factors have a positive impact on the economy. Otherwise, taxes would be paid to the country issuing the license, not the country where the player spends the funds. Countries like Malta and Gibraltar are able to maintain their economies at commendable levels through the tax revenue generated by the gaming industry. Regulation leads to job creation and thereby contributes to improving the standard of living in the country.
Q. Which countries are currently leading the iGaming space, both in terms of market share and technological advancements?
A. Countries such as the UK, US, Japan, China, and Australia currently hold leading positions in both the iGaming industry and technological advancements. These countries have well-developed online gambling and land-based gaming sectors, contributing to the overall growth of the industry. During the COVID-19 pandemic, the majority of market players opened online casinos and not only maintained their player base, but also expanded its number several times.
Additionally, these countries were among the first to introduce local regulations, securing a dominant market position. Advertising for locally licensed online casinos is now more accessible, giving you the opportunity to reach and engage with a wider audience.
Q. Could you elaborate on the key factors that have contributed to the success of these major countries in the iGaming industry?
A. The development of offline casinos in these countries is likely the biggest factor in their success. People in these countries are used to thinking of online casinos as a form of entertainment rather than a way to earn money. Advances in information technology have facilitated the development of online casinos, eliminating the need to spend time on travel and expenses. Now, the casino is always in your pocket. This has greatly contributed to the rapid growth of online gambling in these countries.
Q. How does the iGaming industry impact job creation and employment opportunities in the regions in which it operates?
First and foremost, enacting local regulations will help create jobs, as licensees, law firms, and payment companies all need talent. And, of course, we must not forget about the operators themselves. One online casino has more jobs to fill, as they can involve professionals from different fields such as marketing, development, traffic management, and finance. Local language support alone creates a significant number of jobs for low-skilled professionals.
Additionally, industry events held in different countries provide employment opportunities to the event organizing sector, which inevitably impacts overall employment.
Q. What are the potential future growth areas and untapped markets for the iGaming industry and how might these impact the global presence of the iGaming industry?
In my opinion, new potential markets for this industry include Latin America, Asia and Africa.
If we look at Latin America, the region has a very large population and the overwhelming majority of its residents do not have access to offline casinos, making online casinos more accessible. The population has a strong affinity for gambling and enjoys sports betting, bingo, and lotteries.
Asia is one of the most densely populated regions in the world. Many countries are considering regulations, including Thailand, Vietnam, and parts of India. Although online gambling is regulated in Japan, sports betting is very popular among the population. Particularly in India, the growth of iGaming has been evident with the development of the Internet. Sports betting is popular among players, especially cricket, local IPL, and live dealer games.
The most potential markets in Africa are South Africa, Tanzania, Nigeria and Kenya. The region's potential lies primarily in sportsbooks, and with the growth of mobile phones and the internet, online casinos and betting platforms are increasingly entering these markets.
When it comes to growth areas, crypto casinos are definitely one of them. Cryptocurrency removes restrictions on funds transfer and is increasing the number of players around the world due to its high acceptance rate. Crypto casinos do not care about the player's location. The important thing is to have a deposit method and a good internet connection.
Another interesting idea, albeit in the distant future, is the transition of online casinos to the Metaverse universe. Experiments have already been conducted to open a casino within GTA, and it has been overwhelmingly popular. After all, our lives are increasingly moving online.
Q. Can you explain the challenges and risks associated with the expansion of the iGaming industry, both from a regulatory and market perspective?
A. The most significant risk to the development of the iGaming business is the proliferation of so-called “gray” online casinos. These establishments operate without a license and unfortunately may not pay winnings to their customers.
This primarily affects the reputation of an online casino, as users may be hesitant to deposit on other platforms when encountering such issues. This may reduce the total number of online players. Secondly, such casinos avoid paying taxes, leading to a revenue shortfall for the government. Third, these managers may prove to be unscrupulous employers, depriving employees of their fair wages.
Q. How will advances in technology such as blockchain and virtual reality impact the iGaming industry, and which countries are at the forefront of adopting these innovations?
A. The future lies in technology like this, which will greatly simplify the lives of both players and operators. Cryptocurrency offers anonymity of payments and a 100% approval rate. When it comes to virtual reality and the Metaverse, it has the potential to replace offline casinos, offering realistic interactions and the feeling of being part of an event. However, this is not something that will happen soon and will likely be further down the line.
AMPLIFY 2024 – March 19th and 20th
Irina will be speaking on “Emerging Markets: A Global Review” at Affiverse AMPLIFY 2024. This exciting two-day live-streamed virtual learning summit provides affiliates and affiliate managers working in all industries with a series of informed discussions covering emerging trends and expert-led thinking. Masu. A leadership workshop designed to improve the performance of your affiliate business!
Get your tickets.
