Local regulation, metaverse gaming and data privacy are just some crucial industry trends for the current year according to SOFTSWISS.
The iGaming tech provider has analysed results and market changes in 2022 to share a data-driven report on the Hottest iGaming Trends for 2023. The insights are based on data from 600+ SOFTSWISS clients, expertise of key company specialists and industry experts’ survey results.
Payments & Licensing
60% of the third-party experts surveyed by SOFTSWISS named Payments & Licensing as the most crucial category influencing the iGaming industry.
In 2023, more global markets are expected to become locally regulated. This trend is strengthening as countries, including Germany, Sweden and the Netherlands withdraw from their registrations with international gaming authorities.
In terms of payments, operators need to ensure an abundance of well-established payment options and localisation of financial modules. Integration of Apple Pay and Google Play could serve as a sound springboard to boost an online gambling business on the go.
As for digital coins, even non-pro crypto adopters are expected to continue to offer them as a payment option to tap into new audiences and attract crypto-oriented gamblers. On the whole, cryptocurrencies see a wider recognition, as many countries are beginning to recognise and integrate them into their financial systems. The latest example is Ukraine launching e-hryvnia issued by the NBU.
Andrey Starovoitov, co-CEO at SOFTSWISS, says “The SOFTSWISS Crypto Casino Solution statistics demonstrate that Bitcoin, Ethereum and Litecoin remain the most demanded among crypto players. We also expect USDT to be an upcoming trend in the next few years.
“Despite the fact that the crypto market is going through turbulent times, operators recognise the importance of crypto payments and their influence on project attractiveness for the audience and final casino choice. This explains why in 2023, operators will seek to integrate alternative currencies and reinforce their portfolio with new digital coins.”
Operators are predicted to shift their focus from product-centric to user-centric business models. Commitment and effort to solve player issues will pay off through improved player retention metrics and increased loyalty.
The launch of mobile and smartwatch versions of casino and sports betting projects will continue to win new audiences seeking easy and quick access to online gaming functionality.
The increasing popularity of live dealer games with crypto users is also noted in the report.
As for sports betting, the SOFTSWISS Sportsbook statistics demonstrate that 66% of bets are placed during live events against 34% of those placed in advance. This adds weight to the technical sustainability of platforms and drives the need for high quality live broadcasts.
The data-driven decision-making approach will make operators seek ready-made software products offering real-time access to clear and transparent data. In 2023, operators will redirect attention from exclusively financial KPIs as the first deposit and towards game session length and bet count metrics. Prudent operators will diversify their game portfolio, integrate new bonuses and use free-to-play games to improve loyalty, increase conversions, and establish long-term player relationships.
Max Trafimovich, CCO at SOFTSWISS says: “To run a profitable iGaming business operators need to know what their target audience is concerned about: be it integration of top-performing titles and new game mechanics to diversify their content portfolio or availability and seamless performance of different payment methods including crypto, or technical sustainability of web and mobile project versions.
“At SOFTSWISS, we develop technologies allowing our clients to stay one step ahead and keep track of their project progress 24/7 in great detail. To achieve these goals, in 2022 we launched three Business Intelligence tools housed by the SOFTSWISS Casino Platform – BM3, Event Streaming and iGAP.”
In 2023, gamification, a major player engagement opportunity, will continue to evolve, bringing in a number of related trends.
Cryptocurrency and NFT are expected to underpin financial systems in meta-casinos to simplify withdrawing and depositing from different countries.
Operators are expected to rely more on jackpot campaigns to attract, reactivate and motivate players to engage. According to the SOFTSWISS Jackpot Aggregator’s clients, 49.6% of jackpot players increased their average bet sum in response to a global jackpot campaign.
Bonuses will also find their use regulating at-risk gambling activities and protecting overspending players. Operators will opt for new innovative bonuses with flexible mechanics meeting various player needs.
Max Trafimovich adds: “However, it is not only the innovative technologies that engage the audience. Retention and reactivation practices in project operations also affect the growth of key casino metrics. By treating each player as a VIP, we not only maximise the player LTV, but also increase overall audience loyalty. In 2022 the SOFTSWISS Reactivation team discovered that their outgoing interactions reduced player churn rate by 50%.”
Players now want to understand what data operators are collecting about them, and how it will be used. In the context of GDPR and data security, the main data privacy as a priority trend will develop in several sub-trends, further detailed in the report.
Emphasis will also be laid on Responsible Gambling practices. Preventing affective behaviour, dealing with problem players and managing marketing activities will enable a healthy gaming experience, free of economic and social risks.
2023 will also see improved fraud prevention with advanced ML-powered tools. The SOFTSWISS Anti-Fraud department – which saved €15bn for company clients in 2022 – shares that the most widespread types of fraud look like: Bonus Abuse (69.9%), Money Laundering (9.9%) and Payment System Fraud (5.9%).
Operators will protect their reputations and incomes by strengthening the verification quality with the help of additional analytical tools and services for checking documents and identifying destructive patterns.
Andrey Starovoitov summarises the report trends: “The iGaming market generates plenty of trends stemming from various business areas. And it is a challenge to monitor and follow each of them. To be a leading casino or sports betting operator, we suggest leveraging all existing business opportunities.
“In 2023, this starts with the integration of innovative solutions for deep project analytics and player engagement tools. And choose a reliable software provider who offers deep data-driven market expertise, flexible products, top-level service and is capable of ensuring security.”
Visitors to ICE London are encouraged to meet with SOFTSWISS experts and Business Development Managers at stand N8-231, where they will be presenting technology solutions and product updates.