The 5 Challenges Facing Online Casinos in the 2020s
The first two decades of the 21st century have been hugely successful for the iGaming industry. It faced, one would argue, two main challenges: First, the prospect of transitioning to mobile gaming, which came about suddenly just as the industry was perfecting its place on desktop computers; secondly, there was the roll out of live dealer casino, an incredibly ambitious project that required collaboration among competitors.
Both of these challenges, as well as others, were met head on, and the industry has gone from strength to strength in terms of growth. But the 2020s look like they will have more challenges for an industry that is constantly evolving and adapting to internet technology. We look at five such challenges – some predictable, some not so obvious – below:
Regulation
Most operators of betting and gaming sites will claim – with good reason – that they have taken steps to become responsible businesses, especially in terms of marketing and advertising. However, the fear is that draconian measures are implemented, such as those proposed by the Labour Party in the UK. Online casinos, like every industry, can arguably do more to protect players, but some of the steps taken to promote responsible gambling in the last few years have been admirable. It's worth noting that in the UK and Ireland, much of this was done in the absence of regulation, not because of it.
Challenge from Video Games Industry
Something that might have seem bizarre a decade ago, but the biggest challenge in terms of the market forces to casinos is the rise of competitive video games. The casino industry has been quick to react, of course. While games like French roulette at casino.com will never go out of fashion, more and more we are seeing new concepts in casino games, making them look like video games. Moreover, there is a move for casino software developers to start programming skill-based games that might one day end up replicating the likes of Fortnite or Call of Duty. It really could upend the entire industry.
Getting the Most Out of VR
At almost every iGaming convention, there is almost always a buzz around the idea of getting virtual reality into the casinos, both land-based and online. Yet, there is not quite a firm agreement on what VR Games will look like. Will it be about brining people to play classic games like poker and roulette in a virtual environment, or will they harness the technology into bringing something like adventure casino games? The smart money is on the latter outcome.
Cryptocurrency
Something that has been on the agenda for a few years now – what do online casinos do about crypto? The problems are manifold. For a start, how to you work out the house-edge of a casino game when you consider the volatility of a digital currency like Bitcoin? Secondly, regulators prefer to see a degree of transparency among casino accounts, something that is obviously in contrast to the ethos of cryptocurrency and the blockchain. Expect casino operators to be keeping a keen eye on what happens with Facebook and the mainstreaming of its Libra coin.
Green Issues
We could put 'green issues' down as a challenge for almost every type of industry on the planet, but it's no different for the online casino industry. Obviously, an online casino isn't going to be the target of extinction rebellion, but you can expect calls for things like "green software" to grow over the coming years. Indeed, like any industry, demonstrating its green credentials is a means of attracting positive attention and, as a consequence, new customers.