STARTUPS
and taxes can render a segment unviable almost overnight. Adaptability and resilience are core requirements for all entrepreneurs. Gambling startups also have to great timing and a large measure of luck. Fortunately, there are still people out there prepared to take the risk, but investors also have to be convinced. For the reasons outlined and the reputational risk that also comes with gambling, VCs can be a tough sell. Many early-stage investors are gambling industry entrepreneurs themselves. They know the risks, but can also see the potential. Their presence on a board can also provide a degree of reassurance to others who would otherwise look for opportunities elsewhere. Future trends Thefutureofgamblingdependsoninnovation.AIand machine learning will deliver personalized gaming experiences and manage risk. The regulatory
environment will continue to change, potentially unlocking markets and segments which enable innovation to continue. Keeping up with these shifts will be essential for new companies looking to enter the market. Although entering the gambling sector comes with its share of obstacles to be overcome, new businesses have plenty of opportunity to thrive. It will be fresh ideas and the discovery of as-yet- un-thought-of business models that contribute to growth, and new companies will provide them. By utilizing technology and pinpointing overlooked customer groups, start-ups can establish a position in this fiercely competitive field. The industry’s growth outlook and the achievements of newcomers highlight the benefits of creative and well-planned market entry strategies. Without start-ups and innovation, the industry cannot survive. It is in everyone’s interest to foster an environment in which start-ups can thrive and provide us with innovation in our industry.
JOSEPH BORG Head of Fintech and Gaming and Gambling practices, WH Partners. For information contact joseph.borg@whpartners.eu +356 20925100 PHIL SAVAGE Head of Publications and European Affairs, IMGL. For information contact
phil@IMGL.org +44 7778 353836
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