Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How the Casino Industry Adapts to an Evolving Financial Market
May 20, 2023
Image: Freepik/starline
The casino industry has experienced a huge amount of growth in recent years, particularly in the online sector. New technologies and improved accessibility have made online casinos more popular than ever, and a growing number of people across Canada have been signing up to play real money games at legal and licensed casinos.
With casino gaming now becoming more popular, lots of new sites have launched for Canadian players in recent years, and the market has grown increasingly competitive, creating new challenges. In this article, we’ll look at the pressures that online casinos face and how the industry has adapted to an evolving market and the rise in competition.
Challenges That the Casino Industry Faces
All industries face challenges, and the casino industry is no different. In recent years, increased demand for online gaming has increased revenue for many businesses in this sector, but it’s also had a negative effect on traditional casinos. Land-based casinos were particularly affected by the global pandemic, which meant many had to close their doors.
Perhaps the biggest factor in how casinos can operate is regulatory restrictions. Casinos need to follow rules and regulations to operate legally. In Canada, recent changes to the law have introduced strict new regulations for online casinos. These regulations focus on making casino gaming safer while also generating tax revenue.
However, adhering to regulatory standards is not the only challenge faced by online casinos. The landscape of online gaming is also characterized by intense competition. Despite the increase in demand, the market remains highly competitive, with a myriad of platforms all vying for the same user base.
How the Casino Industry is Adapting
Online platforms have been the biggest adaptation that the casino industry has introduced in recent years, with lots of traditional gaming companies now launching their own online casinos. As the saying goes, if you can’t beat them, join them. Traditional casinos have been losing out to online platforms, which offer greater convenience.
By offering their own online platform, traditional casino brands can utilize the trust and reputation of their brand and reach a wider audience, achieving greater revenue and also providing a better experience to their players. What’s more, this may also build greater brand loyalty and see online players choosing to play in person too. This means the casino industry can continue growing and attracting new players while both online and land-based casinos thrive.
When it comes to regulations, casinos have had to adapt quickly if they want to operate legally and gain the trust of players. One of the most significant changes that many online casino sites in Canada have progressively implemented is the advocacy is the of responsible gambling. All legal casinos now have a requirement to offer players resources, tools and support if they need help.
Responsible gambling tools available at online casinos include deposit limits and time limits, which players can set up if they need help controlling how often they gamble and how much they spend. While it may not be the ultimate solution to preventing problem gambling, it has been shown to help those suffering from gambling addiction to limit their losses.
Self-exclusion is another tool that allows online gamblers to close their accounts and take a break from gambling. Once activated, all of that user’s accounts are locked across all licensed platforms that are part of the self-exclusion scheme. This is an effective solution, though, in the future, AI tools can be used to identify problem gamblers based on patterns and their gambling behavior.
To compete with the growing level of competition in the casino market, especially online, many gambling platforms take a different approach to marketing. Incentivized marketing has quickly become the most common way for online casinos to attract new customers, offering bonus packages and deals to stand out from the competition.
Final Thoughts
The casino industry has experienced a lot of changes in a short amount of time, with the rise of online gambling platforms forcing traditional companies to adapt or die. As the global financial markets change and force further evolution, the future may hold even greater challenges for existing companies. However, casinos will no doubt continue to grow in popularity, especially as technology continues to improve.
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