STARTUPS
Making Room for Start-ups in Online Gambling HAS AN INDUSTRY OF STARTUPS LOST ITS APPETITE FOR THE NASCENT ENTERPRISES THAT ARE ITS FUTURE LIFEBLOOD, ASK JOE BORG & PHIL SAVAGE
Challenges for new entrants Despite the increase in the total addressable market, getting into the online gambling business has never been tougher. Robust regulations, high initial investment requirements and tough competition from established firms are only a few of the reasons. Securing a license in some markets can require an investment exceeding US$100,000, with recurring compliance costs adding to the financial burden. This is before any customers are recruited, a process which necessitates promotions and marketing budgets running into the US$ millions. Given that the online world knows no borders, it is very unusual for a gaming operator to stick to one jurisdiction as they gain scale economies from a broader footprint. However, the fragmented licensing systems across the globe make it extremely difficult, if not impossible for operators to
The global online gambling & betting market was valued at US$58.2 billion in 2021 and is projected to approach US$145.6 billion by 2030, expanding at a compound annual growth rate (CAGR) of approximately 12 percent from 2022 to 2030. This expansion is driven by advancements in technology, wider internet access and the legalization of online betting in various regions bringing as yet untapped markets onstream. What is often less the subject of comment is the number of enterprises that comprise that value which didn’t exist 20 years ago. Whilst there are some venerable names in the industry, the vast majority were startups in recent memory. They have attracted some of the most creative and innovative talent to the industry, individuals that have regularly gone on to file patents and found companies themselves. They have ridden technology waves and tapped into opportunities that continue to drive the industry’s success and excite customers and investors alike.
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IMGL MAGAZINE | SEPTEMBER 2024
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