The industry has dealt with recent challenges, including cyberattacks. There are signs that fraud is accelerating in this space, making fraud prevention solutions incredibly important. Towards the end of last year, two of North America’s biggest operators had their security compromised with one having to pay USD 15 million in ransom. In fact, the gaming and entertainment industries are the third most targeted after finance and healthcare, especially in the US. Some claim that cyberattacks in the casino industry are increasing by 1,000% annually.
With that kind of risk, players need reassurance that their data and payments are secure. Forward-thinking operators are looking for better ways to securely process transactions, and users can expect widespread adoption of advanced measures, including higher levels of encryption, two-factor authentication, and continuous monitoring.
Many have recently used mergers and acquisitions (M&A) to gain market share and scale. France’s state-owned lottery operator, FDJ, has agreed to buy Sweden’s Kindred Group for USD 2.7 billion. The acquisition would create a European leader in online betting and gaming, with a presence in 25 countries and a combined revenue of about EUR 3.5 billion. There could be regulatory consequences to this, including scrutiny from competition authorities and increased assessment from consumer bodies to ensure responsible gaming practices and data protection policies are being met.
Recently, Flutter Entertainment completed a EUR 141 million deal to acquire 51 percent of MaxBet to expand their international operations. MaxBet has a strong presence in the Balkans, providing Flutter with a strong retail footprint in these markets. This year, consolidation will not decrease, and, for payments, these companies will need the support of centralised processes, economies of scale and joint investment into new ways of working.
To sustain growth, the market is looking to target new demographics, and this means embracing a breadth of new technologies. Millennials and Gen Z are more tech-orientated and want a fully digitalised experience. Worldpay’s recent report “Bet on it: The top trends in gaming payments” outlines the different expectations that come with players of different generations.
We’ve discussed augmented reality (AR) and virtual reality (VR) for years now, but the surge in tech, exemplified by the Apple Vision Pro VR set, is pushing innovation. Operators must constantly leverage the latest technology to position themselves ahead of their competitors. These technologies will allow companies to create immersive experiences that create new options for gamification. For the operators, AI-driven algorithms can provide better insights, predictive models, and increased personalisation for their players, aligning with the growing expectations of the market.
In payments, innovative solutions that offer a touch-free and fast payment experience—such as pay-by-QR-code—are in high demand. Players are expecting greater choice when it comes to alternative payment methods (APMs), digital wallets, and prepaid cards. Operators who incorporate new technology and wider payment methods will be able to cater to diverse audiences.
With markets maturing, competition for revenue is tougher than ever and that can be tackled through optimisation and new market strategies. Brazil recently signed Bill PL3626/23 into law , which will establish the regulatory framework to launch its federal sports betting marketplace. Operators have been deliberating on how to operate in Brazil for years now, and this is especially important for those who have already reached maturity in their current markets.
For those with growth targets in their current regions, focusing on optimisation and player experience will be key differentiators. Players have become less tolerant of any friction in their betting journey, necessitating operators to curate that experience. A key challenge lies in achieving this while improving conversion rates. With multiple routing options, network changes, and issuer preferences, payment options are always evolving and that’s making things tougher than ever. This year and moving forward, cost optimisation will be critical for operators aiming to maintain a competitive edge.
Learn more about these trends—and more—when you download our report, “Bet on it: The top trends in gaming payments”.
About Kavita Kovvali
About Worldpay
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now