Industry predictions for 2023: Latam to lift off and UK to introduce online slots stakes cap

Maksym Liashko, CEO of Parimatch Tech  

In 2023, the key trends will be the continuing growth of the US and Latam markets. In the last few years, both regions have moved to market liberalisation, which will lead to increasing relevance in one to two years. Latam countries started to offer many opportunities for companies who can provide the best igaming products for their markets, so that’s why such an approach will definitely lead to the growth of the industry in the region. 

India is a big one too. Due to changes in government policy towards the gambling industry, new local companies are expected to enter the market. This will bring closer the complete regulation of the industry, which will entail a wave of M&A among small local providers and accompanying services: payments, marketing agencies and other operational solutions. 

As for product trends, mobile betting and casino will lead the list regarding the growth potential in 2023. This is explained by the fact that mobile revenue is already the primary revenue channel for most online operators, and I see no issues that could prevent this area from growth in the future.  

With the victory of Ukraine in the war with Russia, the country is expected to inflow foreign investment, including the entertainment sector. Through local operators, big global players will enter the post-war market, which will help bring the industry to a new level. 

Evgen Belousov, deputy CEO at Parimatch Tech 

The technological component is becoming more and more important for igaming companies, and I see this trend further developing throughout 2023. At the same time, many technological aspects are moving to the cloud, which makes not only the development, but also the use of cloud-based products more dynamic and convenient. They are becoming less dependent on the power of users’ devices, which opens up easy access to products for more and more people. 

However, because of this, the danger associated with cyberattacks also increases. So in the coming year, along with the trend towards increasing the number of technological partnerships and M&As, we will see the same growth in the field of cybersecurity and protection of personal data. 

Anna Motruk, deputy CEO at Parimatch Tech 

The diversification trend became most relevant in 2022 and forced many companies to enter new markets. In Eastern Europe, for example, we saw much activity in markets such as the Czech Republic, Poland and Romania; in a global sense, a lot of attention is focused on Latam, which is at a stuttering start in terms of regulatory decisions. 

I think this year, all new extensions will be put to the test. Building an effective decentralised business system requires deep expertise in the specifics of various markets, distribution of expenses and responsibility centres. So, we will soon be able to see whose decisions were strategically balanced and who began to act impulsively, succumbing to the general trend. 

At the same time, diversification itself remains more relevant than ever – because, in a world of declining economies, it is the most reliable protection for companies against fragility. 

Steven Salz, CEO of Rivalry  

Game publishers further embrace regulated sports betting 

The benefits of responsible and regulated sports betting are coming to light, particularly in the US, where sports consumption, fan engagement and media rights deals are higher than ever. The price of professional sports teams are rising too, with Forbes recently reporting that the world’s 50 most valuable sports teams are worth 30% more than they were a year ago. 

In the games industry, long-term engagement is the new benchmark for success where publishers now generate a majority of their revenue from in-game transactions. This shift will place an unignorable spotlight on betting and betting-related activities as a means to drive the engagement publishers need to further monetise their games. 

The advent of legalised sports betting has clearly drawn connections between sports bettors and engagement, where betting activity translates into enhanced viewership, engagement and economics. We believe these benefits are uniquely aligned with the KPIs of publishers, esports organisations and tournament organisers, and that the games industry will continue to embrace responsible and regulated sports betting as a means to deepen engagement. 

Brand equity will be the key to unlocking sustainable customer acquisition and value 

The sports betting industry is at an inflection point, where the consequences of incessant bonuses and promotions are exposing the inherent challenges operators face in acquiring and retaining customers, as well as the need for long-term sustainable strategies. 

Bonusing is not a way to salvation, and the operators who now must aggressively reel in marketing spend are finding themselves without any reliable customer touchpoints. Much of Rivalry’s success is rooted in a player acquisition strategy that scales through word of mouth and market entrenchment of brand equity, reducing our reliance on linear spend to achieve growth. Building a brand that people love organically can create the customer loyalty needed to succeed without the need for endless player subsidy. 

We believe operators will continue experimenting with different long-term organic strategies and content to not only reach new customers, but also build relationships with the brand that can create stickier acquisition and engagement.  

Operators take up nuanced strategies to pursue more targeted audiences 

The market saturation of sportsbooks and focus on the same customer cohort – 35-years-old and above male sports bettors – has created the current acquisition paradigm the industry is finding itself in today. 

We believe this will push operators to pursue more nuanced strategies to target specific geographies, demographics and communities. Wisely participating in singular cultures and communities will drive tremendous value and earn the brand affinity needed to increase customer margins, and importantly, differentiate in a deeply competitive market. 

Similarly at Rivalry, we’ve embedded ourselves in gaming and internet culture, attaching ourselves to the consumer economy of the future, as well as the pervasiveness and virality of the internet. We see a significant level of untapped opportunity in esports as an emerging sports betting category, but it’s also an entry point to a demographic of users under the age of 30. 

Deliberate strategies to tap individual demographics and geographies with an intimate understanding of the audience will bear fruit for the operators that are able to execute it correctly, and we expect to see this more in 2023. 

William Woodhams, CEO of Fitzdares

If the cap fits… 

For the UK, I’m pretty sure there will be a max stake on slots as a part of the white paper release. This will hit the casino-focused operators harder and be stomached by the sportsbook operators. It will be another blow for the UK industry but ultimately we are moving into a new cycle for the industry with low or zero growth for the big operators as racing becomes prohibitively expensive and their management teams are overly obsessed with the US. Smaller operators like ours will try and take market share in racing and will not be hit so hard by casino compliance.

The clamour in the US to subside 

The goldrush in the US will calm down with shakedown of the weaker operators, a reduction on ludicrous acquisition and increase in concerns on safer gambling by US media. Currently it’s the Wild West and it’s inevitable that lawmakers will need to start curbing some of the marketing and incentives. Ontario is in a much better position having been clear on its position from the start. We launch there for the Super Bowl and cannot wait.

Finally… 

My real prediction is the legalisation of gambling in some interesting markets. I can’t say more but would expect some surprise jurisdiction openings.