The gambling industry is currently facing significant challenges due to the social stigmas associated with it. One of the key concerns is the widespread belief that the house always wins, which dissuades potential users from adopting online gaming.
According to Statista, "the number of online gaming and sportsbook users is projected to reach less than 10% of almost 6 billion global Internet users by 2027.”
In the past, the shipping industry faced growth challenges related to the transportation of goods, such as rampant theft and loss of merchandise. This led to a negative perception of the industry. However, the arrival of shipping containers revolutionized the industry. Containers could be efficiently stacked, allowing for the transportation of more goods across the seas. Labor costs also dropped dramatically, and since containers were sealed, theft declined.
Similarly, the gambling industry has attempted to address its growth issues by embracing peer-to-peer or social gambling, which allows users to compete against each other instead of the house. These forms of gambling are believed to be a fairer way to bet and are expected to attract a wider audience. However, scalability and regulatory challenges have hindered these forms of gambling from reaching their full potential.
Industry leaders should take note of the following actions to fully realize the potential of this domain:
Transition to consolidated social gambling operation:
Operators should consider joining a centralized white-label operation managed by an exclusive technology company that offers a wide variety of social gambling games.
This would enable multiple operators to market social gambling profitably and overcome scalability or liquidity hurdles. Moreover, it could lead to the emergence of a social network as powerful as Facebook in the gambling industry and unlock unprecedented engagement rates and advertising revenues.
Encourage researchers to improve social gambling classification:
Encouraging researchers to accurately classify social gambling games and provide conceptual clarity is crucial for navigating the regulatory hurdles in this domain.
A technical report on social gambling, commissioned by the Gambling Commission in Great Britain, suggests that this initiative can help regulators identify games that require renewed consideration due to their unique features. Additionally, this effort can establish a foundation for addressing consumer protection issues in social gambling.
Reorient the public toward the true purpose of social gambling:
PeerGaming strongly believes that the public should not view social gambling as a replacement for traditional forms of gambling, where players compete against the house.
This belief undermines the united spirit needed for gaming operators to drive social gambling forward.
Traditional betting against the house and social betting among players are two different ways to achieve the same goal. The true purpose of social gambling is to complement traditional gambling and provide users with a wider range of options to choose from.
PeerGaming specializes in creating innovative social gambling experiences for the gaming industry. As a design and consulting firm, they have developed several innovative user experiences that can attract new users and unlock unprecedented growth for the gambling industry.
PeerGaming plans to license its intellectual properties to a technology company that would manage a consolidated social gambling operation for operators and invest considerably in this supplier to ensure the success of the venture.
About Richard Owoyemi
Richard is the founder of PeerGaming and a visionary in the gaming industry with over seven years of experience. His achievements include the development of innovative user experiences, such as X-League sports betting and PeerGaming syndicate, among others.
“By implementing these crucial changes, the gambling industry can revolutionize the perception of gambling, attract new users, and accelerate growth in the market. Ultimately, this will help overcome the challenges it currently faces. The future of the gambling industry looks bright, and it is up to industry leaders to take advantage of the available opportunities,” states Richard.