Industry predictions for 2025: Omnichannel on the up and Antipodean answers

David Evans, Buzz Bingo chief product officer

Driving efficiency and expanding horizons to meet challenges

The UK bingo market is facing unprecedented challenges, including high CPAs, tightened LTVs due to increasing regulations and rising operational costs driven by policies such as the National Insurance hike and minimum wage increase. These pressures demand operators to find innovative ways to drive efficiency and maximise customer value.

At Buzz Bingo, we are addressing these challenges on two fronts: accelerating our international expansion and optimising our UK operations. This year, we opened our first international office in Gibraltar, laying the foundation for global growth while maintaining a strong commitment to delivering value and responsibility in the UK market.

Key to our strategy is integrating physical and digital channels to create seamless player experiences. By omnifying our core offerings, we continue to innovate with products like Buzz Casino and our omnichannel app and rewards system. These enhancements allow us to meet players wherever they are, combining convenience with exceptional entertainment.

As we look to 2025, operators that prioritise efficiency and adapt quickly to market challenges will be best positioned for sustainable growth, both at home and abroad.

Innovation is key to growth

In an increasingly competitive market, especially in the US, innovation has become essential for operators seeking to stand out. Features like attractive sign-up bonuses and seamless user journeys have evolved from ‘wow factors’ to baseline expectations. The next wave of growth will belong to those that define their unique product-based value and deliver unparalleled customer experiences that strike a balance between the familiar and the fresh.

For Buzz Bingo, innovation is not just a buzzword; it’s embedded in everything we do. The launch of Big Money Live exemplifies this commitment, combining the liquidity of our trusted retail estate with the strength of our website, buzzbingo.com. This hybrid approach enables us to offer prize money on a scale that pure online operators cannot match. Delivered via live streaming technology and hosted by real people, Big Money Live captures the fun and excitement of playing in a venue with the scale and ease of playing online.

The role of AI

Artificial Intelligence (AI) will continue to be a key trend in 2025, with the potential to transform the online gambling experience by making it highly personalised and engaging. Advanced machine learning algorithms will analyse player behaviour, preferences and betting patterns in real-time, allowing for tailored game recommendations, betting options and promotions that align with individual interests.

At Buzz, we are already embracing this future through our partnership with Future Anthem. Over the past year, we have developed AI-powered game selection engines and real-time rewards systems. This level of hyper-personalisation not only boosts user satisfaction, but also increases player retention, as players feel their preferences are understood and catered to, creating a more immersive gambling environment.

As AI continues to evolve, its role in personalising the gaming experience will be essential for operators looking to stay ahead. In 2025, companies that harness AI to create smarter, more engaging platforms will lead the way in this competitive industry.

Jamie Nettleton, Addisons partner

Clarity on Australian ad ban

There will be clarity on the restrictions that apply to the promotion of Australian licensed online betting operators. This will take place as a result of legislation that will reflect the government’s response to the recommendations of the parliamentary inquiry handed down 18 months ago. That inquiry, chaired by the late Peta Murphy, recommended that all forms of betting advertising be prohibited.

The government’s response is likely to be more nuanced and will permit some forms of advertising relating to online gambling operators. It has also been suggested in the media that further restrictions relating to the broadcast of gambling advertisements on TV and radio will be introduced.

Currently, there are restrictions on the times during which gambling advertisements are permitted to be broadcast, especially in conjunction with live sporting events. There is a possibility that the government’s response will become an election issue with the next federal election due to take place in May 2025.

This is due to there being clear difference between the recommendations of the parliamentary report and the government’s response which is likely, in the minds of the anti-gambling sector, to allow too much gambling advertising to take place.

New Zealand’s significant developments

There have been some announcements in recent weeks from New Zealand that will be relevant to the global online gambling sector. Historically, the position in New Zealand has been quite different from most other jurisdictions, with online gaming operators permitted to provide services to persons in New Zealand subject to compliance with certain obligations, including tax. Offshore online gambling operators are also prohibited from conducting any form of in-country advertising.

The first announcement may signal the introduction of legislation in 2026 to allow online casino licences to be granted. Although details are yet to be released, the New Zealand regulator has indicated that a consultation process will be conducted over the course of 2025. It is proposed that 15 licences will be granted and will be issued following an auction process. Further, it has been stated that operators will be able to hold more than one licence (subject to a cap to be prescribed), with separate licences being required for different brands.

Secondly, it would appear that the current market which allows global online betting operators to provide services to persons in New Zealand will change with the announcement of an exclusive licence in respect of online sports betting and online racing betting being granted to TAB New Zealand which is currently managed by Entain.

We expect to see more details of the implementation of this exclusive licence to be released early in 2025 and will watch with interest the measures that will be taken by the New Zealand government to prevent offshore operators from providing services to persons in New Zealand.

It appears that New Zealand is likely to follow the Australian approach with legislative prohibitions being made more prescriptive and practical steps being made to deter the supply and availability of these services to New Zealand consumers.

Consolidation as market conditions get tough

The Australian gaming market has faced considerable challenges in the course of 2024 with the introduction of more extensive restrictions aimed at harm minimisation. This has impacted the revenues of all Australian gambling operators which are consumer-facing, with those operators which have been most successful being those which conduct business outside of Australia.

Restrictions on advertising, restrictions in relation to self-exclusion and maximum gambling period restrictions, as well as a more subjective view of the extent to which operators are allowing customers potentially suffering gambling harm from continuing to gamble have all come to the fore.

These restrictions have had significant effects on the profitability of terrestrial casinos and online betting operators. I expect further restrictions to be announced in the course of 2025 and stronger enforcement to occur. This will be accompanied by a willingness of regulators to impose more onerous penalties in respect of operators which are perceived to have failed to comply with relevant laws and codes of conduct.

Due to this regulatory climate, operators are definitely increasing the size of their compliance teams. This results in greater personnel expenses and places considerable pressure on the viability of the smaller gambling operators. We therefore anticipate that there will be increasing consolidation among the gaming sector in the course of 2025.