TMCnet Feature
April 08, 2021

Economics and Technologies Behind iGaming

Almost all of the online gaming operators have become “generalists”. Only a few large poker sites remain exclusively focused on their core business. All other operators now offer online casino games, including,

  • Poker
  • Bingo
  • Skill games, and
  • Betting.

Even sports betting specialists today only make 50% of their gross gaming revenue (GGR) from this activity. Likewise, the leaders of online casinos are making just over 40% of their GGR from this segment. By the way, with some of the payment options, sports betting was known to grow “by nearly 70% and iGaming by nearly 200% in 2020”.

The objective of these operators is clear: to attract—sometimes at a high cost, then, to make profitable—the essential target of ‘big players’, those regular customers with a high average basket who like to gamble at everything.

Every year, new casino products appear on this market and bring industry’s economic benefits. Operators, thus, try to differentiate themselves from their competitors, even if they generally copy their product offering on top of each other.

Casino Games as a Product

In terms of casino games, if slots (like online pokies here) still account for half of the GGR of market leaders, few online operators offer a range of less than 100 different products.

There are many slot machines among the main players in the market, but also

  • Table games (like roulette)
  • Card games (blackjack and baccarat included)
  • Video-poker
  • Lottery (Keno), and
  • Bingo.

Depending on the activities and their audiences—beginners or real profies—the base stake can vary greatly: from $0.01 for some slot machines to more than $100 for the "big" blackjack tables.

It’s also possible to point out two “new products” that are on the rise:

  • Live dealers, where a physical dealer is filmed via a webcam, which gives players the feeling of being themselves in a casino
  • Games (often free, sometimes subscription-based) based on social networks like Facebook (News - Alert), which bring together millions of players and are a good recruitment vehicle for gambling.

So, the GGR numbers are expected to grow, and the industry would thrive as well as the economy both locally and globally!

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