In 2021, the iGaming market was valued at $198.40 billion, according to a report published by consulting company Mordor Intelligence. Experts say that by 2027, it will reach $339.95 billion.
The increased popularity of online gambling is the result of several factors, including:
- The effects of quarantine restrictions that were introduced in 2020;
- The increase in Internet users in general;
- The increasing spread of smartphones;
- The emergence of high-speed network connections such as 5G.
This rapid growth for market players has a downside, though: the competition in the iGaming niche is growing. The fight for every user in the market is increasing, but the main fight is for a share of that $198.40 billion. The iGaming market imposes its own limitations. There is more traffic in the market than most payment systems allow to accept. So, one thing is important to understand at this point: are you getting the maximum possible profit right now without bringing in additional resources?
The limitations and challenges iGaming businesses face
According to experts, the bottleneck is a point, at which the progress of a business stops or slows down. Some believe that in the online gambling industry, this point lies in the money, namely in the flow of payments and the speed of their processing:
- If you spend a few thousand dollars on casino traffic, will your payment system be able to process all of them or will you just lose money?
- A client has funded his wallet on your gambling site. How soon can he start the game?
Your customers want to start playing now, and any delay in moving money causes anger and frustration. A negative user experience reduces client lifetime value (LTV). This way, you as a gambling operator will spend, on average, three times as much money attracting a new customer as retaining your existing customer. In other words, you are losing money again.
Another limitation is the currency you can accept payments in:
- How many currencies can you accept now?
- What e-wallets can customers transfer money to you from?
- Are you looking beyond fiat currencies?
A trend in recent years is accepting cryptocurrencies. According to research conducted by the global IT service company Triple-A, 8% of Americans own cryptocurrencies, in Europe this index averages 5%, in some countries, for example in Ukraine and Russia – 13%. Cryptocurrency transactions are confidential, which is what users like. This allows you as a business not to be tied to one particular country.
So, what kind of losses are we talking about? We are talking about lost profits, it is hard to estimate the real scale. In the case of the problem of low payment throughput, companies often lose more than 50% of the money invested. And yes, we are not talking about lost profits, but real losses.
How to solve this problem?
On November 24-25, GBC-Time iGaming Round-Up will take place – an online conference devoted to the problems and tendencies of the iGaming industry. The main sponsor of the conference is BetaTransfer Kassa.
A reliable and secure payment service that will help with payments in fiat currencies and crypto from almost all over the world. The company has been in the market for more than 7 years and has great expertise in working with high-risk merchants. BetaTransfer Kassa solves all the problems related to the bottlenecks of the iGaming business. BetaTransfer Kassa’s solution will allow you to accept payments in different currencies, including cryptocurrency. The company has developed a solution for mass payments. The working conditions are flexible without bureaucracy. With BetaTransfer Kassa businesses do not lose money.
You can learn more at the link: https://betatransfer-merchant.com/en/?utm_source=CMUo&utm_medium=state1
