Although there are pockets of the world where online gambling is not allowed, it remains legal in a vast majority of countries.
As discussed in our previous blog post, “Placing Bets on the Move,” we’re seeing more online gambling companies meeting their players where they want to play most – on the mobile channel. As outlined in iovation’s 2018 Gambling Report, the industry has reached a tipping point in mobile with a greater volume of transactions now being delivered via the mobile channel.
As a result of a broadening mobile audience, operators will be faced with new opportunities - and challenges - from new and emerging markets around the world.
As one might imagine, the online gambling industry is massive, and there are no signs of it slowing down. As the industry continues to evolve and emerge in these new markets, operators will need to proactively stay ahead of unwanted and risky behaviors like bonus abuse, player collusion, credit card fraud, money laundering, account takeover, and more.
Based on iovation’s data from the world’s largest device reputation database which is used to protect 17 million transactions every day, the United Kingdom remains the world’s largest online gambling market based on transaction volume, followed by China, Finland, Germany and Vietnam. However, they are not leading in denied transactions – China is #1 for deny rates and coming in second place for transaction volume. Interestingly enough, Sweden takes 6th place in transaction volumes, but their denial rates come in #10.
Even though we are seeing transaction volumes increase in emerging markets like China, Vietnam, and Turkey, it doesn’t necessarily mean there is more fraudulent activity originating from those locations. As operators expand their scope into new markets they will need to have sophisticated analytics in place to not only keep fraudsters off their platform but to also better understand how to provide the right incentives to new players. Leveraging iovation’s business rules and insights from the consortium, our online gambling clients are able to make smarter, real-time decisions that not only proactively prevent losses, but also improve the player experience.
Fun Fact: Can you take a guess at what time of day is the peak transaction time, and consequently, the highest deny rate time? Download the full report to uncover the answer and discover what trends the industry will be faced with in 2018. Check back on our final blog post in this series which will discuss the final trend – the rise of self exclusion.