GINAR’s Global Online Gaming Market Research 2018
The gambling market remains lucrative with opportunities waiting to be discovered. In the epoch of blockchain technology, new disruptive innovation can create new avenues for traditional business to capitalize on and revolutionize how an industry works.
The major players of the gaming market can be segmented into 3 dominant regions namely: Asia-Pacific, North America, and Europe. According to the top 100 games markets ranked on their revenue estimates for 2018, the best-performing countries in these regions include Macau in the Asia-Pacific region, the United States in the Americas region and Germany and Italy in the European region.
In 2016, the total gambling gross yield worldwide was projected to reach 450 billion USD, this was forecasted to rise to 495 billion USD by 2019. Based on the global gambling report by Global Betting and Gaming Consultant (GBGC), casino gaming constitutes the largest gambling sector, followed by the lottery sector.
Online gaming market
Over the years, online gambling businesses have changed their business model to suit the demands and new regulations. New revenue opportunities are increasingly available for the online gambling business to develop into as law becomes laxer. As such, we observed that there are numerous innovations in the blockchain technology within the gambling industry.
In 2015, the online gaming market had a volume of 37.91 billion USD, this figure is forecasted to increase to 59.79 billion USD in 2020 as stated in a Statista’s report
It is anticipated that the global online gambling market will expand rapidly, with a forecasted compound annual growth rate (CAGR) of 11.8% from 2018 to 2026. The forecasted positive growth is due to trends observed in the gambling market. Trends such as changing consumer gambling habits, use of alternative options to cash for gaming, growth in the penetration rate of credit and debit cards, and rising numbers of female gamblers are major factors driving the online gambling market.
The largest market for online gambling is Europe, making up 47.6% of the 37.91 billion USD of online gaming gross win generated. What’s helping the continent be seen as the leader in gambling is its level of innovation, especially through the growth of successful casino platforms.
Issues facing the Gaming and Gambling Industry
Gambling issues relating to both players and operators continue to persist from players gaming in a traditional casino to players gaming through an online gambling site. Despite the positive outlook of the gambling industry, there are several problems which can hinder the market progression. The following details are extracted from the source as shown at the footnote.
- Complaints Made about Gambling Industry
Most complaints were made in relation to an incorrect bet settlement (18%). Similar proportions of gamblers have made a complaint about non-payment of winnings (13%), followed by issues relating to customer service (12%), inability to withdraw funds (12%) and misleading gambling promotions/adverts (12%).
- Attitudes and Perception
The views on gambling have become increasingly negative compared to 2016 during the same survey, with only 33% of respondents thinking that gambling operators are fair and can be trusted, and 41% thinking that gambling is associated with criminal activity.
When choosing an operator, gamblers stated that they chose “reputation of a company being fair and trustworthy” as the top reason when it comes to their preferred selection. Overall, attitudes towards gambling in its current state are becoming more negative.
- Cheating and Fraud
From 2013 to 2017, reports of cheating fraud from iGaming (anything related to odds, games of chance, and games which have a gambling element to them) operators have increased by more than a factor of 10 in just a four year period from an estimated 8,000 to 110,000.
As online gaming becomes more prevalent, people looking to cheat the game can often hide behind the mask of anonymity
- Public Opinion
Operators need avenues to show their credibility in order to attract gamblers. This can be done in the form of revealing the winning odds for a game, allowing customers to have the autonomous ability to handle their cash flow and credibility rating verified by a neutral 3rd-party.
However, it would be unconventional for any gambling business to reveal the inner workings of their games. Such an example would be the RNG seed that is employed by the business that is generated by the RNG hardware acquired by the business. As such, there is no fool-proof way for gamblers to decide or verify if the games that they are playing, are rigged.
GINAR’s management allows for a decentralized Blockchain product, created by experienced professionals, with a team with outstanding track records which result in effective management. The main goal of GINAR is to help eliminate any fraudulent practices or perceived duplicities in the gambling industry by creating a reliable decentralized Random Number Generator (“dRNG”) by leveraging Blockchain technology. This solution can be used for any B2B segment that requires a true, fair, reliable and verifiable random number for its business activities, thus increasing the trust and commitment from their clients. Businesses will be able to verify all the transactions and review the dRNG algorithm for every bet, game or any business activities in the online gambling industry.
The generation of these transparent random numbers at an impressive speed and volume builds trust with the players, therefore increasing its market share. This will also bring bureaucratic optimization, as online gambling operators do not need to deal with a large number of authorities such as government agencies and private organizations.
Close-to-zero transaction fees and a proven solution to generate fair and unbiased public random numbers based on blockchain technology will be the new standard. GINAR also ensures a secure, seamless and consent-based exchange of sensitive data.
Not only can it solve its credibility problem, but it can also reduce operation and transaction costs involved in operating and maintaining the dRNG platform. GINAR will help any B2B segment in any real-time business applications to facilitate scaling the business and proving them with a great opportunity to expand its business globally.
Challenges to expanding globally, such as restrictions posed by certain countries due to regulatory and tax-related issues can be mitigated. For example, currently, third-parties retain the right to block the player’s account and confiscate the winnings after the transfer. GINAR will allow for the elimination of third parties or middlemen. This product helps to give us the freedom to develop without borders and accept payments worldwide with the only limitation of the imposed Ethereum Transaction Throughput.