SWEDISH IGAMING BEHAVIOUR
Following on from last month’s issue of Trafficology, CasinoFeber provides us with data pertaining to trends among iGaming players in Sweden by income
SELF-PERCEIVED FINANCIAL SITUATION PER SALARY BRACKET (CASINO & BETTING)
MY EXPENSES ARE OFTEN BIGGER THAN MY INCOME AND I CONSTANTLY STRUGGLE TO MAKE ENDS MEET
MY FINANCIAL SITUATION ISN’T BAD, BUT NOT GOOD EITHER
I CAN AFFORD TO BUY WHAT I WANT AND STILL HAVE MONEY LEFT TO SPEND
I HAVE A STRAINED FINANCIAL SITUATION, BUT I MANAGE IF I PLAN MY BUDGET
I HAVE A GOOD FINANCIAL SITUATION AND CAN SOMETIMES INDULGE MYSELF
UNKNOWN/PREFER TO NOT DISCLOSE
Source: CasinoFeber
As could be predicted, those in higher earning brackets have more opportunity to afford what they need with money to spare, while those in lower earning brackets have less in terms of leftover expenditure.
Beyond the SEK 50,000 ($4,877) mark, casino and betting players are less likely to ‘sometimes indulge themselves’ financially. This is likely due to the amount of funds no longer being a restrictive factor in spending, making ‘sometimes’ a redundant statement.
SELF-PERCEIVED FINANCIAL SITUATION PER LOCATION
THE SELF PERCEIVED FINANCIAL SITUATION OF THE LOCATIONS WITH THE TWO LARGEST CITIES STOCKHOLM AND GOTHENBURG
THE REMAINING LOCATIONS WHICH CONSISTS OF LESS DENSELY POPULATED AREAS
My expenses are often bigger than my income and I constantly struggle to make ends meet
Source: CasinoFeber
I have a strained financial situation, but I manage if I plan my budget
My financial situation isn’t bad, but not good either
Across both densely populated areas and less populated areas, having a good financial situation and being able to indulge was the most popular answer across subjects, though those from less densely populated areas voted for this more often – surprising, since it is typically believed
I have a good financial situation and can sometimes induldge myself
I can afford to buy what I want and still have money left to spend
Unknown/Prefer to not disclose
that those in capital and high population cities are more financially well-off compared to their rural counterparts.
Statistics across both metrics are relatively similar, indicating that geography is less of a factor when assessing someone’s risk of problem gambling.
LEVEL OF INCOME AND AMOUNT GAMBLED - CASINO
AMOUNT GAMBLED: 1 - 10 GBP / MONTH
AMOUNT GAMBLED: 20 - 100 GBP / MONTH
AMOUNT GAMBLED: 250 - 1000 GBP / MONTH
AMOUNT GAMBLED: 10 - 20 GBP / MONTH
AMOUNT GAMBLED: 100 - 250 GBP / MONTH
AMOUNT GAMBLED: MORE THAN 1000 GBP / MONTH
Income: 010,000 SEK pm (£0 - 747)
Income: 10,001 - 20,000 SEK pm (£755 - £1,502)
Income: 20,001 - 30,000 SEK pm (£1,502 - £2,246)
Source: CasinoFeber Across the board, spending over £1,000 ($1,309) per month on casino gambling was rarely ever answered by players in Sweden. Gambling between £250 – £1,000 was also rare, though begins to pick up in the SEK 50,000+ income categories, likely due to the amount of disposal income accessible to these groups. While spending under £10 per month was consistently
Income: 30,001 - 40,000 SEK pm (£2,246 - £2,995)
Income: 40,001 - 50,000 SEK pm (£2,995 - £3,744)
Income: 50,001 - 70,000 SEK pm (£3,744 - £5,242)
Income: 70,000 + SEK pm (£5,242+)
a highly answered metric, it was most popular at the polar ends of the spectrum, with those earning between SEK 20,001 – SEK 50,000 being the least likely to spend this amount. For low-income earners the reason for spending less is self-explanatory, though provides interesting food for thought for those in the SEK 50,000+ earners category. Perhaps these individuals are more likely to spend on other activities?
SPELPAUS.SE SELF-EXCLUSION FOR BOTH CASINO AND BETTINGBASED ON INCOME
I AM CURRENTLY SUSPENDED FROM GAMBLING IN SPELPAUS (SELF EXCLUSION)
I HAVE BEEN SUSPENDED IN SPELPAUS (SELF EXCLUSION) BUT NOT ANYMORE
Source: CasinoFeber
Those with a lower income are noticeably more likely to be or to have been suspended from gambling by SpelPaus, with those making SEK 10,000 and under the most severely affected. This may be due to several factors, including those with lower incomes needing to be more cautious with
I HAVE HEARD ABOUT SPELPAUS (SELF EXCLUSION) BUT NEVER USED IT
I HAVE NEVER HEARD OF SPELPAUS (SELF EXCLUSION)
Income: 40,001 - 50,000 SEK pm (£2,995 - £3,744) Income: 50,001 - 70,000 SEK pm (£3,744 - £5,242) Income: 70,000 + SEK pm (£5,242+)
spending, thus opting for self-exclusion as opposed to other methods.
No one in the survey in the SEK 70,000+ bracket reported being on or previously being self-excluded. This, again, may be due to the amount of disposable income accessible to these individuals, making selfexclusion for financial reasons less of a necessity.
EFFECTIVE STRATEGIES FOR SUCCESS IN AFFILIATE MARKETING
1xBet breaks down the formula for success in the affiliate marketing sector
The swift evolution and extensive reach of the internet has created a perfect environment for affiliate marketing, enabling businesses to expand their audience and reach financial wellbeing. Partnering with a successful and reliable brand can significantly enhance virtually any media project, boost revenue and increase the security of future endeavours.
AFFILIATE MARKETING
Operators should aim to expand their user base, increase betting volumes, explore new markets and enhance brand visibility. To achieve these goals, they should seek the support of popular news websites, blogs, YouTube channels, social media pages and messenger group owners. These media resources can drive traffic to gaming platforms by leveraging their widespread popularity.
CHOOSING THE RIGHT PAYMENT PLAN
Success in affiliate marketing involves selecting a payment model that aligns with the strategy of the business involved. Initially, it is best to decide which payment structure is most advantageous in achieving this.
• CPA (cost per action): Pays partners for each new player registration or deposit.
• Revshare (revenue share): Offers lifetime commissions based on revenue generated by the bookmaker.
• Hybrid: Combines a one-time fee for new active players with lifetime commissions from the bookmaker’s profits.
Lifetime commissions for referred players can reach up to 50% of the revenue they generate. Each model has distinct advantages, but regional laws and tax regulations vary, so it’s
“The swift evolution and extensive reach of the internet has created a perfect environment for affiliate marketing”
essential to choose the one that best fits local requirements and business strategies. Affiliate marketing offers significant advantages for sports betting businesses and provides clear benefits to affiliates.
ACCESS TO THE GLOBAL MARKET
Sports betting transcends borders and global interest in sports creates a vast audience. Promoting high-profile events can drive substantial attention to both an affiliate’s resources and an operator’s betting platform. Leverage the global appeal of top sports brands to attract sports enthusiasts and bettors.
BRAND AWARENESS
With the opportunity to implement unique advertising strategies and test different content approaches, working with a reputable brand highly increases the chance of reaching a large and engaged target audience. For operators, affiliates provide a way to bring in new players from corners of the internet they may not have previously reached.
ADVANTAGES FOR BETTORS
Affiliate marketing is a dynamic and versatile business model that provides one method that may result in success in a competitive market, representing a fully legal income stream. Successful examples of affiliate programs can be seen across the market, and can even operate in regions with restricted betting opportunities, allowing for revenue generation in new and uncharted territories.
SETTING THE RIGHT PRIORITIES
Trafficology sat down with Catena Media’s recently appointed CEO Manuel Stan. Check out the Gambling Insider website for the full Huddle video interview
HOW HAVE YOU BEEN FINDING THINGS AT CATENA SO FAR?
Some things are very good and some things are not so good, as you’d expect in any new place. I’m impressed with the team, how engaged and motivated the team is. It’s a great place to be right now. We have a lot of very dedicated, talented staff that are highly engaged.
The things that are not so good, focusing on the last few years, are that Catena has tried to do a lot of things and you can see the result of that with people being pulled in left and right. We’ve been missing clear priorities and transparency for the teams, and teams trying to do too many things at the same time. This is one of the big things we’ll try to address. But we have a great team in place and, as long as we align on priorities and it’s clear for everybody what we need to do, and we say no to things, I think we’re in a good place.
YOU’VE BEEN IN THE GAMING INDUSTRY FOR NEARLY 20 YEARS NOW AND YOU WERE WITH KINDRED FOR 16 OF THOSE. THROUGHOUT THOSE EXPERIENCES, WHAT HAVE YOU
LEARNED? AND WHAT DO YOU HOPE TO BRING TO CATENA FROM THOSE EXPERIENCES?
Before Kindred, I was on the affiliate side. I was with BetBrain for a few years, so my journey was pretty much affiliate, operator, back to affiliate. Also in the early days, I built my own affiliate network, my own affiliate sites. I have experience from both sides; that’s probably the most important thing I bring here. I have hands-on experience, having been an affiliate myself, having worked for affiliates but also having been with an operator for so many years, Kindred/Unibet. The affiliate programme there is one of the leaders in the industry, and we’ve been working with Catena and others throughout the years. The other factor is the fact that I spent the last 20 years both in Europe and North America, building up a very good understanding of the differences between the two geographies and how that can also help Catena.
HOW DOES IT FEEL SWITCHING FROM AN OPERATOR BACK TO AN AFFILIATE?
Good! It’s back to basics. I hope it’s getting back to the things I once fell in love with and how I got into the industry. It feels
really good. The big upside is, having spent so many years on the operator side, you gain a fair understanding of what operators need, what their demands are and what their strategy looks like. Trying to implement that in the way you’re responding with your products as an affiliate is key for us going forward. But it’s definitely fun and I’m personally a big SEO fan from back in the day. It’s nice to go back to basics; it’s nice to get your hands dirty again and work on the things that actually make change.
I CAN’T IMAGINE WHAT IT’S LIKE COMING BACK TO THE AFFILIATE SIDE AFTER YOU’VE BEEN WITH AN OPERATOR FOR SO MANY YEARS... It is fun, though. There are upsides on both sides. This is closer to my background where I started. Also, [during] my Kindred career, a big part was spent on the affiliate and SEO side. So again, I never left this part. I was always close to it, but it’s good to be back on this side.
WHEN YOU WERE OFFERED THE JOB AS CATENA MEDIA CEO, WHAT WERE YOUR INITIAL THOUGHTS?
Obviously, everybody knows the share price, right? That’s the elephant in the room. We’re still stepping into a place where we’ve been under a lot of pressure for the last six, seven quarters. It’s a public company; we can see the results. So, the first thing is to look into the share price, looking at the results and understanding what’s causing that. The next thing is to look at the product and understand what can be done. The first touchpoint was to understand from the financial performance what happened and what can be done, and the next one is to
“Setting the right priorities and making sure the entire team pulls in the same direction is very important”
understand, actually, these are our products. Are they good products? Are they great products? Are the products suffering? Is it something we can improve?
Your mind goes quickly to ‘what are the next steps?’ How can we get the share price from around SEK 5-6 ($0.47 - $0.57), back to SEK 20, SEK 40, SEK 50, SEK 154? It is a long journey. But the thing that did excite me are the products from Catena. Looking at the brand portfolio, we have some really good products. Again, one of the things we’re trying to do is return to that clear priority and focus for everybody, pulling the same direction.
Catena has thousands of websites of products at the moment. We’re a team of just over 200 people. We cannot properly manage thousands of sites. So one of the big exercises we’re doing right now is trying to clean and figuring out what we’re focusing on. As you can imagine, any 80:20 rule in our case is more extreme. We make much more than 80% of revenues from much less than 20% of our properties. So, making sure the team is focusing on those is key for us. That was what that attracted me in the early days, looking at the assets of Catena and thinking how we can improve revenues with what we have.
1,000 SITES AND 200 PEOPLE. THAT’S FIVE PER PERSON. I CAN UNDERSTAND FEELING SPREAD QUITE THIN.
That wouldn’t work. I think you need priority for everything you’re doing. Setting the right priorities and making sure the entire team pulls in the same direction is very important. For the last few weeks, that was one of the biggest exercises we’ve been doing, looking into prioritising everything we’re doing; geographies, products, projects. Making sure it’s properly socialised in the company and everybody understands what we’re trying to do and how we’re trying to do it, making sure that again 200+ people are pulling in the same direction.
YOU’RE ALSO STEPPING INTO SOME BIG SHOES – FORMER CEO MICHAEL DALY. HOW DO YOU INTEND TO NAVIGATE THAT?
First of all, the greatest respect for Michael. He is a good friend. And indeed, big shoes. He’s done a fantastic job at Catena. Thankfully for me, I’m not stepping into his shoes on my own. I also have a new management team that will help me navigate that. It’s very important to note that it’s not just me being new at Catena – pretty much the entire management team will be new by the end of the year. Since the beginning of Q2, we’ve had a new CFO, a new COO, a new CTO and myself,
MANUEL STAN
so that’s four brand new people in the team and the team is absolutely fantastic.
We have a combination of new blood with people who have been here for a while, people who have grown with the company and people who have proved themselves. Everybody is highly motivated and everybody is keen to take this challenge. That’s my biggest thing right now – those may be big shoes, but I have other people’s feet to help me fill in those shoes. We’re in this together and as a management team, we’re highly motivated to turn this around.
WHAT DO YOU FEEL ARE SOME SKILLS THAT ARE UNIQUE TO YOU AND HOW DO YOU INTEND TO APPLY THEM AT CATENA?
I have been in gaming for 20 years, I have a pretty good overview of the entire industry. Geographically, from a product perspective, I’ve worked on both the key verticals, casino and sportsbook, worked in North America, in Europe, worked on the affiliate side and operator side. I don’t want to say a jack-of-alltrades, but I’ve been involved in everything a little bit and I think that’s my biggest upside right now.
The second is I have a very hands-on approach. I come from a background where I started building websites. I was in charge of the content and SEO on those sites. So conversations about the projects, everything that’s happening right now, I’m trying to look at it as part of the team, bouncing ideas with the team and being part of what we need to do, how it can happen. That’s probably the biggest thing I bring to the table. But, also being with Scandinavian companies for the last 20 years, that’s also good from a cultural perspective. It’s a really good fit with Catena, with the rest of the management team and with the company overall.
WHAT ARE YOUR LONG-TERM AND SHORTTERM PLANS ROADMAP-WISE FOR CATENA?
HOW DOES THAT ROADMAP TIE INTO TURNING CATENA’S FINANCES AROUND?
The strategy we’re trying to work on internally is based on people, product, profit. We’re actually doing things in the same order. Already, the work started by Pierre Cadena and Mike Gerrow, the COO and CFO, from the beginning of Q2 is around the new organisation model, a new operating model that’s focused on product. So making sure we have the right structure in place, the right people in the right places and we’re focusing those teams on the right things is the first piece of the puzzle in my mind. It’s just making sure right now that we have the people, we have the processes, we have the fundamentals right. That is the short-term focus, making sure that works. That it’s working as it should without any flaws.
Next thing is the product, making sure our products are where they need to be. Again, the products are the bread and butter of Catena’s business, so making sure we’re focusing on the right products and we’re doing the right things there. In the long run, in my mind, that will lead to profit, that will lead to improving the profit and getting back to where it needs to be.
I don’t have a public target in terms of where the revenues or the share price needs to be; as we’ve communicated before, we need to return to growth in the second half of the year. That’s our immediate target. We’re focusing on people, fundamentals, processes, moving into product and product optimisation, and that will lead to the financial long-term goals.
“ Thankfully for me, I’m not stepping into [Michael Daly’s] shoes on my own. I also have a new management team which will help me navigate tha t ”
BRINGING CRYPTO TO THE MAINSTREAM
Matthew D’Emanuele , CEO at Yolo Entertainment, speaks with Trafficology about the company’s brand, Bitcasino, the developing crypto gaming market and where it may be heading
CRYPTO WAGERING GREW BY OVER 18% IN THE FIRST NINE MONTHS OF 2023, ACCORDING TO DATA FROM SOFTSWISS. DO YOU THINK THIS GROWTH TREND HAS SINCE CONTINUED, SLOWED DOWN OR SPED UP... AND WHY?
We’re seeing crypto betting continue its upward trajectory, as it has for the decade since Bitcasino was founded. 2024 has been a significant year for the transition of cryptocurrencies and blockchain technology into the mainstream. We’ve seen Bitcoin hit an all-time high, crypto-focused ETFs received approval in a number of countries, including the US and wider adoption generally, particularly on chains such as Base and Solana. Remember, we’re still very early with this technology. It has only been 15 years since Satoshi published the Bitcoin whitepaper and no one could have predicted the speed of progress since then. Likewise with the online gaming sector, I think we’re only beginning to see what is possible with cryptocurrencies.
BITCOIN IS THE MOST POPULAR CRYPTO TO PLACE BETS WITH BY A MILE. DO YOU THINK THIS WILL REMAIN THE CASE, OR DO YOU THINK OTHER COINS MAY STAND A CHANCE OF GAINING A WIDER PERCENTAGE OF THE MARKET SHARE?
Actually, Bitcoin isn’t the most popular coin with which to play
“Crypto is often mischaracterised as being dangerous, but the technology actually opens a lot of doors when it comes to improving standards around things like AML”
at online casinos and sportsbooks anymore. For many years it was the only game in town, but more recently we’ve seen a fairly decisive shift towards USDT betting. This is for a number of reasons: Bitcoin transactions can be slower and a little more expensive; there are faster and cheaper options now available on other chains; and players tend to like to see their bets denominated in more familiar Dollar or Euro terms.
When it comes to blockchains and coins that will grab market share, we’re really excited by Ethereum layer-2s, Base and Solana. They are more scalable than the original blockchains and give customers the opportunity to deposit and withdraw in seconds, rather than minutes.
WHAT LESSONS CAN TRADITIONAL ONLINE CASINOS TAKE FROM CRYPTO CASINOS?
Don’t be afraid of trying something new, particularly when it is focused on improving the user experience. Online casino has been a very conservative space for years now. There was very much a ‘if it ain’t broke, don’t fix it’ attitude. I think the growth of Bitcasino and a handful of other cryptofocused brands has shown that a lot of players want to see something new.
I’ve mentioned the benefits around near-instant deposits and withdrawals already, but this goes beyond that. Look at one small example – the crash game. As a genre, this didn’t exist a decade ago. It then grew in popularity over a few years in the crypto space and today crash games challenge slots as the biggest draw in many more traditional online casinos.
So, I’d say anyone looking to move web2 casinos forward should similarly be open to new products and new approaches.
WHAT DO YOU THINK ARE SOME OF THE WEAKNESSES OF CRYPTO CASINOS AS WHOLE AT THE MOMENT AND WHAT CAN BE DONE TO RECTIFY THESE?
There’s still an educational challenge that we face. We work with this technology every day, but we need to remember that not everyone is on board yet. Some people are still doubtful about cryptocurrencies for several reasons; I’d argue against these reasons, but we have to acknowledge that this is a process. We work with fantastic operations such as LearnCrypto.com to help spread the word on why blockchain technology and cryptocurrencies are so important. We’ve come a long way in a short time, but there’s still far to go.
CRYPTO EXISTS IN SOMETHING OF A GREY MARKET, WITH A LOT OF GOVERNMENTS TRYING TO FIND WAYS TO REGULATE IT. DO YOU THINK THE POPULARITY OF CRYPTO BETTING WOULD IMPROVE ONCE A MARKET REGULATES IT?
It disappoints me to see the slow pace with which many governments are moving when it comes to regulating crypto. We absolutely need sensible regulatory frameworks which can help grow the space in a safe and sustainable way. Crypto is often mischaracterised as being dangerous, but the technology actually opens a lot of doors when it comes to improving standards around things like AML. We’d argue that our AML procedures are actually more thorough than most web2 online casinos, and that’s because of the way we’re able to analyse blockchain transactions. So absolutely, it is time regulators bring this into the mainstream.
WHAT IS IT ABOUT CRYPTO CASINOS THAT ENGAGE USERS?
I think it is fair to say more and more players are adopting crypto as part of their gaming experience. There’s also an entirely different audience out there who simply don’t find traditional online casinos particularly exciting. Many are crypto-native; they’ve grown up with this tech. They want to use it for everyday purchases, including playing at online casinos. These casinos have struggled over the last years to engage audiences, particularly the
18-30 demographic, which tends more towards esports and console gaming than sports betting and casino. Crypto is an opportunity to reach these people that have been underserved by the traditional sector.
ARE THERE ANY ENGAGEMENT METHODS UNIQUE TO CRYPTO CASINOS? WHY CAN THEY NOT BE REPLICATED BY TRADITIONAL FIAT CASINOS?
I don’t believe the core proposition is fundamentally different. But it’s about things like where we reach audiences and the way we speak to them. Channels like Discord and Telegram are presenting new opportunities to onboard customers in ways the mainstream online casino industry simply never considers. Then we have the added dimension and instant connection that web3 can offer in addition. Over time, this might change and as crypto becomes more widely adopted, I would expect to see the two worlds continue to converge further.
COULD CRYPTO CASINOS EVER DIRECTLY COMPETE AGAINST FIAT CASINOS?
They already are – and in many instances, very effectively. Like I mentioned, there is a group of players who simply aren’t interested in the fiat online casino proposition. It’s why these operators are getting increasingly concerned about losing the next generation of customers to other entertainment options. Crypto casinos, such as ourselves, have been far more successful recently with this, and there’s no reason why our customer-centric, innovative approach to the vertical won’t continue to take market share from more traditional competitors.
MATTHEW D’EMANUELE
LEARNING ABC’S: A BOARDROOM
C-SUITE SHUFFLE
How effective are C-suite reshuffles in revitalising a business? Trafficology investigates...
It’s a daunting task for any business to make major changes to their company, whether it’s a leadership change or rebranding. But what about when its business model is all about maintaining industry connections?
When Michael Daly announced his departure from Catena Media earlier this year, he had been with the company since 2018, but prior to Catena, he’d served in Daly Gaming, GAN and Bally Technologies. It’s no secret that when you work in marketing affiliation, you need to have good relationships with the companies you work with, or the entire relationship unravels. So what happens when a new CEO takes over and a new captain steers the ship?
When Daly’s successor was announced as Manuel Stan, one of the first things that Göran Blomberg, then Catena Media Chairman of the Board of Directors, mentioned was Stan’s “close knowledge of the North American market and of both the operator and affiliate sides of the business,” which is emphasised by his almost two-decade run at Kindred. Yet, if it was just experience in the industry that was necessary for a successful appointment, surely everyone would be a potential candidate. So it begs the question – what components are needed for an effective C-suite reshuffle?
Naturally, it is not just Catena Media that is in the middle of major changes either. On the operator side, Crown Resorts just made several appointments and changes to its C-suite and leadership team as part of a business transformation; while SJM Holdings confirmed a full board reshuffle, following a 77.3% rise in revenue this Q1 when compared to last year’s results. This can always be seen as a risky move to make, as removing individuals will always mean certain knowledge leaves with them. But this feels riskier when you’re dealing with affiliate companies. It’s always been said that business is more about who you know rather than what you know, but when it comes to affiliate companies this is even more relevant.
So, keeping with the ABC’s theme, let’s say there are three key aspects in making a successful C-suite reshuffle in affiliate marketing: Attitude, the Board and Campaigns. Let’s explore each of these in depth.
Attitude seems like an obvious point at first, but it goes a little deeper in the case of affiliate marketing. If you’re going to introduce somebody new to the Board, they need to be able to integrate themselves quickly – not only around the other people in the company, but also to find a space
for themselves around the pre-existing relationships already established within the business. If the new addition is too hands-on or intrusive, they run the risk of fumbling the dynamics; but if they’re too avoidant, they might never learn about them either. Alongside decision-making, one of the best things a CEO can do is learn how to support every other member of the company.
The role of the board cannot be overstated, either. If the company is going to make key appointments at the C-suite level, one of the best ways to keep the momentum of the business going is by having the rest of the Board steer the ship while the new hire is getting settled. This is often taken for granted, though, or at least expected from the other members of the Board, even if there are multiple appointments or moves made at once. The need to have multiple people with valuable interpersonal skills during a full reshuffle should not be overlooked.
Finally, the first campaign that’s launched after a major appointment, reshuffle or rebranding will be used as a measure of success against the changes. If it’s a flop, then the fingers will naturally point back to the new CEO or board members, even if they weren’t involved or if it was in the later stages of development before they even joined. While some aspects of a successful business redirection can be managed, such as picking the right person, there are a lot of unpredictable factors that are more up to fate than we might like.
GLOBAL RISE OF CRYPTO CASINOS
GoGambling Content Manager Dyana Carrins explores crypto casinos in today’s iGaming market
There’s always something exciting happening in the world of online casinos, but few things have changed the industry quite like cryptocurrencies and crypto casinos.
These platforms – which utilise blockchain technology and cryptocurrencies like Bitcoin and Ethereum – are rapidly gaining global traction. Crypto casinos are emerging as a new player on the market, offering a host of benefits in terms of security, privacy and accessibility. To see the global rise of crypto casinos and the reasons behind this shift, we delved into how they are transforming the gambling industry, creating new opportunities for players and operators alike, as well as challenges from a regulatory perspective.
One of the primary challenges in legalising crypto casinos in the UK is addressing regulatory concerns, especially regarding money laundering, user protection and ensuring fair play. Crypto casinos operate within a largely unregulated digital landscape where transactions are often anonymous, complicating efforts to monitor and regulate activities.
WHAT IS A CRYPTO CASINO?
Crypto casinos work in a similar way to standard online casinos, except they have embraced blockchain technology by accepting digital currencies. This includes accepting Bitcoin, Ethereum and other altcoins for deposits, bets and withdrawals. They offer the same style of games and slots, but with the option to place bets using crypto.
While traditional online casinos use standard currencies – such as EUR, USD and GBP – and centralised banking systems, crypto casinos use blockchain technology. This decentralised and transparent approach has a number of benefits, such as offering players enhanced security, greater privacy and improved accessibility on a global scale. Plus,
it’s an additional way for players to get involved in gambling. By accepting cryptocurrencies, these casinos provide an alternative to traditional online gambling, while catering to the growing demand of consumers.
CRYPTO CASINO FIGURES
• Interest in Bitcoin casinos has quadrupled in recent years According to TechReport, between 2019 and 2021, interest in Bitcoin casinos quadrupled. Plus, in 2022, around 4% of all online gambling searches were in some way linked to cryptocurrency. This shows a growing interest in crypto casinos and gambling using cryptocurrency.
• The growth of the global crypto gambling market According to Business Matters, the global online gambling market is expected to reach $127.3bn by 2027. Of this, crypto casinos are projected to claim a significant share of the market. As more and more people accept blockchain technology, and it slowly becomes a viable option for spending money online, many users of online casinos are seeing the benefits of focusing their attention on crypto casinos.
• Bitcoin is the most commonly used cryptocurrency for gambling (although this has now been challenged, see page 20)
There are a wide range of cryptocurrencies currently in use, but Bitcoin is the most commonly used for gambling. According to TechReport, Bitcoin accounted for 73.3% of all crypto gambling transactions in 2023. In second place was Ethereum, with a much smaller share of 9.9%. Dogecoin was also listed as being one of the most commonly used, but with only 3.1% of iGaming bets, putting it a long way behind Bitcoin.
• Crypto bet sum has risen by more than 20% In 2021, crypto made up nearly 8.5% of gross gaming revenue
(GGR) for sports betting. This is a number that’s expected to continually increase going forward. Figures from TechReport also show that the crypto bet sum grew by more than 20% between 2022 and 2023, and the crypto bet count rose by over 50%.
• 62% of iGamers are interested in crypto gambling
In the US, 62% of iGamers that are interested in crypto gambling fall into the 18–34-year-old age bracket. Of this group, 62% of gamblers interested in crypto were men. This shows that the rise of crypto casinos is strongly backed by young males. It is also thought that the average crypto gambler is likely to be young, male and interested in technology, especially investments and trading. That’s not to say other gamers and gamblers aren’t interested in crypto gambling, however.
FACTORS DRIVING THE RISE OF CRYPTO CASINOS AROUND THE WORLD
1. Crypto is secure – Cryptocurrencies use blockchain technology, which is an extremely secure way of managing finances, compared to standard forms of banking. All transactions are recorded on a public ledger which, thanks to its transparency, reduces the risk of fraud and increases security. A lot of users choose crypto casinos because they can gamble knowing that their finances are safe.
2. There’s a Sense of Privacy – When using a crypto casino, players have an additional sense of privacy that isn’t always there when using a traditional online casino. Less personal information is needed when using crypto online. Players can enjoy their gambling activities knowing everything they do is private.
3. It’s a worldwide currency – One of the main factors driving the rise of crypto casinos is the fact that cryptocurrency is used around the world. Whereas EUR, GBP and USD have borders, crypto does not. Anyone with an internet connection can use crypto to gamble online, without having to worry about geographical restrictions and limitations.
4. Fast and free transactions – It’s often a lot cheaper to bank using crypto than other currencies, which is a draw for
those who want to maximise their casino winnings. Players can deposit and withdraw funds, knowing they will arrive almost instantly and without costing too much.
5. Crypto casinos are transparent – Blockchain technology provides a transparent record of all transactions, which means it’s possible to keep track of game outcomes. This allows players to verify the fairness of games independently, which helps them to trust their casino of choice.
6. Crypto is an investment opportunity – The value of crypto can change at any time and this means using a crypto casino can be seen as an investment opportunity. Players can gamble using crypto, knowing that the value could increase even further.
7. Growing acceptance of crypto – As cryptocurrencies become more mainstream and accepted around the world, players are becoming increasingly comfortable with using them for online transactions. Crypto is slowly becoming the new ‘norm’ and players are starting to see crypto casinos as an option worth considering. This growing acceptance is driving the popularity of crypto casinos, as more and more players are trusting their reliability.
CHALLENGES FACING CRYPTO CASINOS
Despite the rise of crypto casinos, there are some challenges that these platforms will need to overcome, especially if they want to continue to grow in popularity. With regulatory uncertainty – many governments and financial authorities are struggling with how to oversee cryptocurrency-based gambling – many casinos and consumers are hesitant to get on board completely. Plus, with the volatility of cryptocurrencies, there’s always a financial risk to both players and operators.
CRYPTO CASINOS IN UK
It is for these reasons that crypto casinos are unlikely to obtain a straightforward UK licence and are likely to operate in the grey market niche.
In general, many of the popular crypto casinos operate under licences from jurisdictions like Curaçao or Malta rather than the UK. The Gambling Commission in the UK is known for its stringent regulations, and many crypto casinos choose other licensing bodies that offer more flexibility.
For UK players, it’s critical to:
1. Verify the licensing information on the casino’s website.
2. Ensure the casino follows fair play practices and has mechanisms for dispute resolution.
3. Consider the reputation and user reviews of the casino for additional assurance.
NEXT STEPS
Despite these challenges, the future of crypto casinos looks promising and GoGambling expects them to become increasingly popular. As regulations evolve to include crypto casinos and the technology improves, crypto casinos are likely to become a weighty component of the global gambling industry. The continued innovation and integration of new technologies will further enhance the appeal and functionality of these platforms, encouraging more consumers and operators to embrace cryptocurrencies.
DYANA CARRINS
AI SLOTS: A NEW CONCEPT
Jekaterina Dubnicka, Communications Manager at Slotsjudge, explains the process of creating a slot game within ChatGPT, and what this may mean for the partnership of gaming and AI in the future
COULD YOU WALK ME THROUGH THE THOUGHT PROCESS OF WHY YOU CREATED A SLOT GAME IN CHATGPT?
After observing the skyrocketing popularity of various AI tools, I decided to take an online course on the creation of such a plug-in for ChatGPT. After the course, Aleksandra [Andrishak, Slotsjudge Editor-in-Chief] came up with an amazing idea; create an online slot in ChatGPT and see how it would work out. I thought, why not? Of course, we had a long sequence of attempts at writing a perfect prompt that would work at all times and also be random and interesting to the user. We wanted to launch something that would be one of a kind and, finally, after all the hard work, we launched Slotsjudge’s own ChatGPT plug-in with its own unique symbols and, well, we showed it to the world!
HOW IS RUNNING A SLOT THROUGH CHATGPT DIFFERENT FROM RUNNING A SLOT THROUGH A TRADITIONAL ONLINE GAMING PLATFORM?
There are many differences, and the AI-based slot platform is certainly a concept that the iGaming industry still sees rarely. Running a slot through ChatGPT involves a lot of text-based interaction and simulation without graphics, designed for AI enthusiasts and slot experts seeking unique experiences. In contrast, traditional online gaming platforms offer real-time graphics and interactive features for a more immersive experience.
IT COSTS 100 POINTS TO SPIN THE CHATGPT SLOT. HOW DOES THE POINT SYSTEM WORK WITH THE GAME?
The point system we came up with is fairly easy to understand. When you type ‘Start,’ you receive an initial balance of 1,000 coins, and each spin costs 100 coins so your balance will be deducted by 100 coins every time you ‘spin the reel.’ Then, based on the combinations shown on the reels, you can win different numbers of coins. For instance, three garlics pay out 50 coins, three lemons pay out 100, three apples pay out 200, three cherries pay out 500, three crowns pay out 2,500 and three jackpots pay out 10,000 coins, which is the highest prize awarded
by one combination in-game. Besides, even if you land three different fruits, you will still win an encouraging prize of 10 coins!
As you play, you can ask the chat for your current balance at any time to see how many coins you have left. In this way, you will be able to keep track of your winnings and expenses and manage your balance efficiently. For example, if you get three cherries, you win 500 coins and your balance is now 1,400 coins.
BEYOND THE CURIOSITY OF SEEING A SLOT GAME IN CHATGPT, WHY WOULD A PLAYER TRY THEIR LUCK WITH THIS SLOT AS OPPOSED TO A MORE TRADITIONAL SLOT?
I am sure users would want to try our AI slot because it is a new and intriguing concept. Players might try their luck with this slot for the unique experience it offers, which is in all regards different from a traditional gambling site. This is for fun and experience only, using a one-of-a-kind plug-in that provides a customisable narrative and interactive storytelling.
IN WHAT WAYS DO YOU THINK THE CURRENT VERSION OF CHATGPT CAN BE INTEGRATED MORE WIDELY INTO SLOT GAMING?
I would say that ChatGPT can be further spread across slot gaming practices by providing personalised game narratives, dynamic storylines and AI-driven character interactions. In this sense, AI offers almost inexhaustible possibilities. It can enhance customer support with real-time assistance and onboarding, offer interactive tutorials and even create engaging promotional content.
CHATGPT IS STILL DEVELOPING AND OFFERING NEW VERSIONS. WHERE DO YOU THINK AI AND SLOT GAMING COULD GO NEXT?
The way I see it, the synergy of AI and slot gaming could evolve to offer personalised gaming experiences, with AI-driven narratives and adaptive game mechanics based on every player’s individual behaviour. Besides, future developments might include real-time emotional recognition to tailor gameplay, advanced predictive analytics for personalised rewards and immersive VR or AR integrations for a more interactive and engaging experience.
Trafficology is brought to you every month by the Gambling Insider team at Players Publishing.
For all editorial enquiries please contact us at trafficology@gamblinginsider.com For advertising enquiries please contact commercial director Deepak Malkani at sales@gamblinginsider.com
We would like to thank the following contributors to this issue: Casino City Press, Jesper Eriksson, 1xBet, Manuel Stan, Matthew D’Emanuele, Dyana Carrins and Jekaterina Dubnicka
And now I see in ways I’ve never seen before. So I took that vision by the waist and I danced it to the door – The Zangwills, 2021.
Players Publishing Limited, all rights reserved.
JEKATERINA DUBNICKA
